Structure A management

What is steps to identifying a decision problem?

Answer explanation

1. identifying of a problem

2. identifying a decision criteria

3. allocate of weight to criteria

4. development of alternatives

5. analysis of alternatives

6. selection of alternatives

7. implementation of alternatives

8. evaluate of decision effectiveness

List 5 common decision-making error & biases

Answer explanation

overconfidence, hindsight, self-serving, sunk costs, randomness, representation, availability, immediate gratification, anchoring effect, selective perception, confirmation, framing, revision

What did managers make?

• Planning

• Organizing

• Leading

• Advertising

• Controlling

What does rational model mean?

Answer explanation

Rational decision making refers to maximizing-value (strive for perfection)

usually not realistic or hard

What does bounded rationality mean?

Answer explanation

Bounded rationality refers to focus on satisfaction rather than perfection

List types of problems

Answer explanation

1. 1. Structured problem (straightforward)

2. 2. Unstructured problem (new/unusual)

List types of decisions

Answer explanation

1. 1. Programmed (repetitive decisions that can be handled using a routine approach)

2. 2. Non-programmed (unique & non-reccuring decision that requires a custom-made solution)

What are decision making conditions

Answer explanation

certainty, risk, uncertainty

Advantages of group decisions making

Answer explanation

1. diversity

2. more information

3. more alternatives

4. increase acceptance of solution

5. increase legitimacy

What are disadvantages of group decision making

Answer explanation

minority domination

pressure to conform

time consuming

ambiguous responsibility