MGM3101 Topic 5 Decision Making, Learning, and Creativity

What is decision-making in a managerial context?

• The process of implementing new technologies

• Responding to opportunities and threats by analyzing options

What characterizes programmed decision-making?

• It is based on established rules or guidelines.

• It is a nonroutine process.

• routine and virtually automatic decision making

What is an example of nonprogrammed decision-making?

• Starting a new business

• Following a standard hiring policy

• Developing new technology

Intuition in decision-making involves:

• a) Detailed data analysis

• b) Feelings and hunches

• c) A team consensus

• d) Extensive brainstorming

Which decision-making model assumes rational choice among alternatives?

• a) Classical model

• b) Administrative model

• c) Optimum decision

What is the primary focus of the administrative model?

• Achieving the optimum decision

• Establishing strict rules

• Explaining uncertainty and risk

Administrative model used to help 2 things bounded rationality and incomplete information.
What Bounded rationality is best described as

• Unlimited decision-making capability

• Cognitive limitations in processing information

• Making decisions without any data

What does "satisficing" involve?

• Selecting the first acceptable or satisfactory option

• Avoiding risks altogether

• Finding the perfect solution

Risk in decision-making refers to

• The degree of probability of certain outcomes

• Having complete certainty about outcomes

• Avoiding potential losses

Ambiguous information means

• Data is accurate and reliable

• Data can be interpreted in multiple ways

• Decisions are fully automated