Modern Bus Making Decisions

Front 1

What is a decision?

Back 1

A choice made between two or more available alternatives.

Front 2

These decisions are routine and repetitive, and the organization typically develops specific ways to handle them.

Back 2

Programmed Decisions

Front 3

One-shot decisions that are less structured than programmed decisions.

Back 3

Nonprogrammed decisions

Front 4

What kind of decision is used if when having to decide if operations are to be expanded into Africa or not?

Back 4

Nonprogrammed decision

Front 5

What is the "scope of the decision"?

Back 5

The proportion of the total management system that the decision will affect.

Front 6

What are the 3 levels of management?

Back 6

lower, middle, upper.

Front 7

What is the relationship between scope of the decision and level of management?

Back 7

The broader the scope of a decision, the higher the level of the manager responsible for making the decision.
(see fig 7-2 pg 158)

Front 8

What is a consensus?

Back 8

An agreement on a decision by all the individuals involved in making a decision.

Front 9

Will a group always be able to produce a consensus?

Back 9

No

Front 10

What are the advantages of a consensus?

Back 10

It focuses "several heads" on the decisions.
Employees are more likely to be committed to implementing a decision if they helped make it.

Front 11

What is the main disadvantage of a consensus?

Back 11

Involves time-consuming discussions relating to the decision, which can be costly to the organization.

Front 12

Who are the first element of the decision situation?

Back 12

Decision Makers.

Front 13

What are the 4 basic orientations that WEAK decision makers have?

Back 13

Receptive oriented
Expoitative oriented
Hoarding oriented
Marketing-oriented

Front 14

What is the group of people called that make the choice of a decision from various alternatives?

Back 14

Decision Makers

Front 15

Who is Earnest Dale

Back 15

He classified weak decision makers

Front 16

Who classifiec weak decision makers?

Back 16

Earnest Dale

Front 17

What type of decision maker wants everyone else make a decision for them?

Back 17

Receptive decision maker

Front 18

What type of decision maker steals other peoples' ideas and hogs the credit?

Back 18

Exploitative decision maker

Front 19

What type of decision maker are self-reliant, want little outside help, and want to maintain their present position and status?

Back 19

Hoarding decision maker

Front 20

What type of decision maker look upon themselves as commodities and try to maked decisions which enhance their value and are very conscious of what others think of their decisions?

Back 20

Marketing-oriented decision maker

Front 21

What is the type of decision maker that realizes the organization's potential and are largely free of the 4 undesirable desision-making orientations?

Back 21

Ideal decision-making orientation

Front 22

What is a relevant alternative?

Back 22

The decision situation is usually composed of at least 2 relevant alternatives. A relevant alternative is one that is considered feasible for solving an existing problem and for implementation.

Front 23

What is an example of Subjective ordering of Alternatives?

Back 23

Past experience of the decision maker.

Front 24

What is an example of objective Ordering of Alternatives?

Back 24

Rate of output per machine.

Front 25

What is the last element of the decision situation?

Back 25

Choice between Alternatives. Managers usually choose the alternative that maximizes long-term return forthe organization.

Front 26

What is a decision?

Back 26

A choice of one alternative from a set of available alternatives.

Front 27

Define decision-making process

Back 27

the steps the decision maker takes to arrive at a choice.

Front 28

What are the 5 steps in the decision making process?

Back 28

1. ID an existing problem.
2. List possible alternative
for solving the problem.
3. Select the most beneficial
of alternatives.
4. Implement the selected alt.
5. Gather feedback to find out
if the implemented alt is
sloving the id'd problem.

Front 29

What is essentially a problem-solving process that involves eliminating barriers to organizational goal attainment?

Back 29

Decision Making

Front 30

1st step:
What 3 ways are problems ID'd to managers?

Back 30

1. Orders issued by managers'
supervisor.
2. Situations relayed to
managers by their sub-
ordinates.
3. Normal activity of manager
themselves.

Front 31

2nd step;
While listing various solutions for solving problems, what are the 5 limitations on the alternatives available?

Back 31

1. Authority factor - superior may have told a manager a certain alternative is not feasible.
2. Biological or human factors - human factors within org inappropriate.
3. Physical factors - physical facilities of the organization may be inappropriate.
4. Technological factors - level of technology may be inadequate for certain alternatives.
5. Economic factors - certain alternatives too costly

Front 32

What additional factors can limit a manager's decison alternatives, and what is it called?

Back 32

Discretionary Area - 4 areas
1. legal restrictions
2. moral and ethical norms
3. formal policies and rules
4. unofficial social norms

Front 33

How are decisions supported if they are to have a chace of success?

Back 33

Implementation. Putting the choice into action.

Front 34

What does feedback do?

Back 34

Tells managers if the problem is being solved or not and if they need to seek out and implement another alternative.

Front 35

What word is the key in discussing decision-making conditions?

Back 35

Future

Front 36

What are the 3 different conditions under which decisions are made?

Back 36

1. Complete certainty
2. Complete uncertainty
3. RISK

Front 37

What is the Complete Certainty Condition?

Back 37

This exists when decision makers know exactly what the results of an implemented alternative will be.

Front 38

What is a Complete Uncertainty Condition?

Back 38

When decision makers have absolutely no idea what the results of an implemented alternative will be.

Front 39

What is the Risk Condition?

Back 39

When decision makers have only enough information about the outcome of each alternative to estimate how probable an outcome will be.

Front 40

What are DEGREES of the Risk Condition?

Back 40

The risk condition is a broad one in which degrees of risk can be associated with decisions, The lower the quality of info about the outcome of an alternative, the closer the situation is to complete uncertainty and the higher is the risk in cloosing that alternative.

Front 41

Which type of decision-making condition is made in organizations?

Back 41

Risk condition

Front 42

What are the 2 objective based decision-making tools used by managers?

Back 42

1. Probability theory
2. Decision Tree

Front 43

What decision making-tool is used in risk situations in which decision makers are not completely sure of the outcome of an implemented alternative?

Back 43

Probability Theory

Front 44

What refers to the likelihood that an even or outcom will actually occur?

Back 44

Probability

Front 45

What is EV?

Back 45

Expected Value

Front 46

What is I?

Back 46

Income

Front 47

What is P?

Back 47

Probability

Front 48

What formula do decision makers generally coose and implement to figure out which alternative has the HIGHEST EXPECTED VALUE?

Back 48

EV=IxP

Front 49

What is a graphic decision-making tool typically used to evaluate decisions involving a series of steps?

Back 49

Decision tree.

Front 50

Who is John F. Magee?

Back 50

He developed a classic illustration that outlines how decision trees can be applied to a production decision.

Front 51

Once various alternatives have been outlined, the financial consequesnce of each different course of action must be compared. What are the 3 steps management must do?

Back 51

1. Study estimates of various inputs such as building another larger, smaller, or expanding a smaller plant.
2. weigh the probabilities of facing different product demand levels for various decision alternatives.
3. Consider projected income yields for each decision alternative.

Front 52

What is the expected value of an alternative minus the investment cost?

Back 52

Net expected gain.

Front 53

Analysis of the ____ ________ ____ for and expected values for each decision alternative helps management to decide on an appropriate choice.

Back 53

Net expected gain

Front 54

What are advantages to group decisions?

Back 54

1. groups can come up with more and better decision alternative than 1 person.
2. When groups make a decision, members of that group tend to support the implementation of the decision better.
3.Groups tend to perceive decisions as threir own, and this ownership perception makes it more likely they will strive to make the decision succeed.

Front 55

What are the disadvantages to group decisions?

Back 55

1. Takes longer
2. Cost - because of the length of time to make a decision.
3. Lower quality because the groups decision is tainted by members efforts to maintain friendly relationships within the group.

3.

Front 56

What is Groupthink?

Back 56

When the quality of a decision made by a group is compromised to maintain relationships within the group.

Front 57

What are 3 processes that assists groups in making decisions?

Back 57

1. Brainstorming
2. Nominal group technique
3. Delphi technique

Front 58

What is the 3 part process of brainstorming?

Back 58

1. Group members state ideas - no matter how outlandish)
(no comments by members on ideas between steps 1 & 2)
2.Group leader records each idea where group can read it.
3. Ideas evaluated only after all have been recorded.

Front 59

Which group technique is designed to ensure that each group member has equal participation in making the group decision?

Back 59

Nominal group technique

Front 60

What are the 4 steps of the Nominal group technique?

Back 60

1. Each group member writes down individual ideas on the decision or problem being discussed.
2. Member presents individual ideas orally. Ideas are written on a board for all to see and refer to.
3. After all members present ideas, the entire group discusses these ideas simultaneously. Discussions are usually unstructured and spontaneous.
4. When discussion completed, a secret ballot is taken to allow members to support their favorite ideas without fear. The idea with the most votes is adopted and implemented

Front 61

What group process technique does not have group members meeting face to face?

Back 61

Delphi Technique

Front 62

What are the 5 steps of the Delphi Technique?

Back 62

1. Problem is ID
2 Group members are asked to offer solutions to the problem by providing anonymous responses to a carefully designed questionnaire.
3. Responses of all group members are compiled and sent out to all group members.
4. individual group members are asked to generate a new individual solution to the problem after they have studied the individual responses of all the other group members compiled in Step 3.
5. Steps 3 & 4 are repeated until a consensus problem solution is reached.

Front 63

What is a disadvantage of brainstorming?

Back 63

Wasting the groups time on ideas that are widely impractical.

Front 64

What is a disadvantage of the nominal group technique?

Back 64

No way of knowing why the group voted the way it did.

Front 65

What is a disadvantage of the Delphi technique?

Back 65

Members are unable to ask questions of one another.