DSM2604(1) DECISION MAKING CONCEPTS

Multiple Choice

Who invented the word decision making?

• Chester Bernard

• Herbert Simon

• Daniel Bernoulli

• Neumann and Morgenstern

Multiple Choice

Decision making is ...

• random selection of choices without analysis

• choose alternative towards achievement

• act of following orders without evaluation

• process where only a single option is considered

Multiple Choice

According to Chester Barnard, decision making involves...

• Ignoring desired outcomes

• Blindly following orders

• Deliberation among alternatives

• Random selection of options

Multiple Choice

The ultimate purpose of decision making is to...

• Limit options

• Delay action indefinitely

• Achieve desired result

• Avoid responsibility

Multiple Choice

Decision making can occur...

• Only in formal organizations

• Both individually and in groups

• Only in groups

• Only individually

Multiple Choice

Which of the following is NOT a key feature of decision making according to Barnard?

• Random guessing

• Selection among alternatives

• Judgment

• Deliberation

Multiple Choice

According to Ajzen’s Theory of Planned Behavior (1991), decision making is influenced by...

• Legal constraints

• Random chance

• Personal characteristics

• External circumstances

Multiple Choice

Entrepreneurial characteristics in decision making include...

• Avoiding responsibility

• Acting proactively

• Ignoring opportunities

• Waiting for instructions

Multiple Choice

Which statement best illustrates high tolerance for uncertainty in decision making?

• panics when outcomes are unknown

• calm and acts confidently in uncertain situations

• refuses to act without complete information

• follows a rigid procedure regardless of context

Multiple Choice

Which is NOT a concept under the theory of planned behavior by Ajzen (1991)?

• Cognitive style

• Tolerance of ambiguity

• Proactiveness

• Accessibility

Match

Match the following concept of theory of planned behavior Ajzen (1991)?

• Intuitive thinking or rational thinking

• Situations of high uncertainty

• Entrepreneurial characteristics

Cognitive style

Tolerance of ambiguity

Proactiveness

• Cognitive style

• Tolerance of ambiguity

• Proactiveness

Match

Match the following concept of theory of planned behavior Ajzen (1991)?

• Royal Malaysia Police (PDRM) uses geospatial forensic satellite laboratory (MSFG) to identify crime hotspot.

• Situations of high uncertainty such as navy captains are calm during emergencies due to their training.

• Salleh System is an innovative effort to prevent crime through public involvement.

Cognitive style

Tolerance of ambiguity

Proactiveness

• Cognitive style

• Tolerance of ambiguity

• Proactiveness

Multiple Choice

These are Herbert Simon’s theories EXCEPT

• Three stages of decision making (1960)

• Types of Decisions (1984)

• Bounded rationality (1957)

• Prospect Theory (1979)

Multiple Choice

Simon’s 3-stage decision-making model helps explain decision making in situations of...

• Predictable situations

• Random events

• Routine administrative

• Uncertainty and complexity

Reorder

Reorder Simon’s three-phase process model (1997)

• Intelligence

• Design

• Choice

1

2

3

• 1
• 2
• 3

Match

Match the following to Simon’s three-phase process model (1997)

• Analyzing information

• Generating alternatives

• Selecting optimal decision by evaluating criteria

Intelligence

Design

Choice

• Intelligence

• Design

• Choice

Match

Match the following to Simon’s three-phase process model (1997)

• Malaysian Maritime Surveillance System (SWASLA) radar detected a boat moving from Indonesia but capsized before reaching Malaysian waters.

• 1. Ignore

  2. Rescue mission

• Since Malaysian enforcement are trained for rescue missions, the navy helped save the illegal immigrants in the boat.

Intelligence

Design

Choice

• Intelligence

• Design

• Choice

Categorize

Options (12)

Well-structured

Routine

Information available

Taken at lower levels

Short time frame

Decision rules and set procedures

Poorly structured

New

Little information

Taken at higher levels

Long time frame

Judgement and creativity used

Organize these options into the types of decisions

Programmed

Non-programmed

Multiple Choice

Programmed decisions are best described as...

• Custom-tailored solutions for unique problems

• Novel, complex, and unstructured decisions

• Routine decisions handled with established procedures

• Decisions with high uncertainty and no precedent

Multiple Choice

In Simon’s classification, a murder case investigation would be considered...

• Administrative task

• Routine procedure

• Unprogrammed decision

• Programmed decision

Multiple Choice

Unprogrammed decisions are characterized by...

• Routine administrative tasks

• Decisions that can be solved using cut-and-dried methods

• New, unstructured problems requiring custom solutions

• Recurring problems with standard solutions

Multiple Choice

Which of the following is an example of a programmed decision in Malaysia?

• International incident

• cybercrime

• Murder

• Daily patrol routes

Multiple Choice

Which of the following is NOT a characteristic of unprogrammed decisions?

• Custom-tailored treatment

• Consequential and important outcomes

• Well-structured with standard procedures

• Novel and unique problems

Multiple Choice

Decision-making under certainty is characterized by...

• Making inferences based on experience

• Having random variations in resources and outcomes

• Being fully informed in advance with no surprises

• Not knowing what resources, constraints, or objectives are available

Multiple Choice

Decision-making under risk involves...

• Complete knowledge of outcomes

• Unknown resources and constraints

• Random variation of objectives

• No probability estimation is possible

Multiple Choice

Decision-making under uncertainty occurs when...

• Outcomes are fully predictable

• Probabilities of future events are known

• Unknown objectives and inferred from experience

• Decisions are repetitive and routine

Match

Match the following decision making conditiions

• Border checks at immigration

• Police deployed during protests

• Bomb threats

Certainty

Risk

Uncertainty

• Certainty

• Risk

• Uncertainty

Multiple Choice

These refers to tradeoff except

• Opportunity cost

• Sacrifice

• Forgone choice

• Best choice

Multiple Choice

Trade-off in decision making refers to...

• Making decisions without consequences

• Ignoring all available options

• Sacrificing one alternative when choosing another

• Choosing multiple alternatives at the same time

Multiple Choice

The term opportunity cost means...

• The probability of making the wrong choice

• Money spent on an investment

• The value of the forgone alternative

• The total cost of all options

Multiple Choice

Which of the following best illustrates a trade-off?

• Attending a training session instead of doing patrolling

• Following a fixed schedule of border checks with no choices

• Randomly assigning routine tasks to officers

• Ignoring available alternatives during a police station raid

Multiple Choice

Opportunity cost is important in decision making because...

• It guarantees a perfect outcome

• It allows ignoring constraints

• It helps evaluate the sacrificed choice

• It ensures all alternatives are chosen

Multiple Choice

An example of opportunity cost could be...

• Conducting patrols without considering crime patterns

• Ignoring citizen complaints

• Randomly choosing which routine police tasks to complete

• Deploying officers to a protest and fewer for routine patrols

Multiple Choice

When Malaysian Navy sees a capsized boat, they decide to do a rescue mission.

Which is NOT the opportunity cost?

• Ignore

• Rescue mission

• Radio Indonesian Navy

• Capture immigrants

Multiple Choice

Which is not true about Neumann and Friedman's (1978)?

• Decision maker uses opportunity cost when it is provided

• Decision maker does not use opportunity cost when it is not provided

• Decision maker will not request for opportunity cost

• Decision maker uses outlay cost information

Multiple Choice

There are only two types of decision theory models, types and contexts.

• True

• False