Chapter 9
choice made from available alternatives - answersA Decision
the process of identifying problems and opportunities and then resolving them. -
answersDecision making
Decision making involves effort both before and after the actual choice.
Management decisions typically fall into one of two categories, What are they? -
answersprogrammed and nonprogrammed
What decision category does this fall into?
The decision to reorder paper and other office supplies when inventories drop to a
certain level - answersProgrammed decisions
involve situations that have occurred often enough to enable decision rules to be
developed and applied in the future. Footnote Programmed decisions are made in
response to recurring organizational problems
What decision category does this fall into?
Decisions to develop a new product or service, acquire a company, create a new
division, build a new factory, enter a new geographical market, or relocate headquarters
to another city - answersNonprogrammed decisions
Are made in response to situations that are unique, are poorly defined and largely
unstructured, and have important consequences for the organization.
Every decision situation can be organized on a scale according to the availability of
information and the possibility of failure. The four positions on the scale are What? -
answers-Certainty
-Risk
-Uncertainty
-Ambiguity
Whereas programmed decisions can be made in situations involving certainty, many
situations that managers deal with every day involve at least some degree of
uncertainty and require nonprogrammed decision making.
All the information the decision maker needs is fully available - answersCertainty
, Low possibility of Failure
Programmed Decision
Decision has clear-cut goals and that good information is available, but the future
outcomes associated with each alternative are subject to some chance of loss or failure.
However, enough information is available to estimate the probability of a successful
outcome versus failure. - answersRisk
Managers know which goals they wish to achieve, but information about alternatives
and future events is incomplete. - answersUncertainty
Managers face uncertainty every day. Many problems have no clear-cut solution, but
managers rely on creativity, judgment, intuition, and experience to craft a response.
The goals to be achieved or the problem to be solved is unclear, alternatives are difficult
to define, and information about outcomes is unavailable. - answersAmbiguity
Ambiguity is what students would feel if an instructor created student groups and told
each group to complete a project but gave the groups no topic, direction, or guidelines
whatsoever.
Nonprogrammed decision
This can create a wicked decision problem
Conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy
information, unclear links among decision elements, and the inability to evaluate
whether a proposed solution will work. - answersWicked decision problem.
the most difficult decision situation managers face.
Which decision making model is Based on rational economic assumptions and manager
beliefs about what ideal decision making should be. - answersThe Classical Model
Also known as The Ideal, Rational Model
This model has arisen within the management literature because managers are
expected to make decisions that are economically sensible and in the organization's
best economic interests.
What are the four assumptions of the Classical Model? - answersOperates to
accomplish established goals, problem is defined
Decision maker strives for certainty, gathering complete information and, alternatives
evaluated
choice made from available alternatives - answersA Decision
the process of identifying problems and opportunities and then resolving them. -
answersDecision making
Decision making involves effort both before and after the actual choice.
Management decisions typically fall into one of two categories, What are they? -
answersprogrammed and nonprogrammed
What decision category does this fall into?
The decision to reorder paper and other office supplies when inventories drop to a
certain level - answersProgrammed decisions
involve situations that have occurred often enough to enable decision rules to be
developed and applied in the future. Footnote Programmed decisions are made in
response to recurring organizational problems
What decision category does this fall into?
Decisions to develop a new product or service, acquire a company, create a new
division, build a new factory, enter a new geographical market, or relocate headquarters
to another city - answersNonprogrammed decisions
Are made in response to situations that are unique, are poorly defined and largely
unstructured, and have important consequences for the organization.
Every decision situation can be organized on a scale according to the availability of
information and the possibility of failure. The four positions on the scale are What? -
answers-Certainty
-Risk
-Uncertainty
-Ambiguity
Whereas programmed decisions can be made in situations involving certainty, many
situations that managers deal with every day involve at least some degree of
uncertainty and require nonprogrammed decision making.
All the information the decision maker needs is fully available - answersCertainty
, Low possibility of Failure
Programmed Decision
Decision has clear-cut goals and that good information is available, but the future
outcomes associated with each alternative are subject to some chance of loss or failure.
However, enough information is available to estimate the probability of a successful
outcome versus failure. - answersRisk
Managers know which goals they wish to achieve, but information about alternatives
and future events is incomplete. - answersUncertainty
Managers face uncertainty every day. Many problems have no clear-cut solution, but
managers rely on creativity, judgment, intuition, and experience to craft a response.
The goals to be achieved or the problem to be solved is unclear, alternatives are difficult
to define, and information about outcomes is unavailable. - answersAmbiguity
Ambiguity is what students would feel if an instructor created student groups and told
each group to complete a project but gave the groups no topic, direction, or guidelines
whatsoever.
Nonprogrammed decision
This can create a wicked decision problem
Conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy
information, unclear links among decision elements, and the inability to evaluate
whether a proposed solution will work. - answersWicked decision problem.
the most difficult decision situation managers face.
Which decision making model is Based on rational economic assumptions and manager
beliefs about what ideal decision making should be. - answersThe Classical Model
Also known as The Ideal, Rational Model
This model has arisen within the management literature because managers are
expected to make decisions that are economically sensible and in the organization's
best economic interests.
What are the four assumptions of the Classical Model? - answersOperates to
accomplish established goals, problem is defined
Decision maker strives for certainty, gathering complete information and, alternatives
evaluated
