MGMT 309 - CHAPTER 8

when the decision maker knows the possible alternative choices and the conditions associated with each they are in a state of

certainty rare

what are the three conditions that decisions can be made under?

certainty risk uncertainty

Satisficing

choosing a "good enough" alternative (part of the administrative model)

Like classical architecture does for subsequent architecture, the ____________ model of decision making serves as an important basis for other perspectives on decision making

classical

eliminating uncertainty is a step in which decision making model?

classical

what are some of the perspectives on rational decision making framework?

classical (gives direction, assumes rationality and logic are present) rational decision making evidence based management administrative management

identifying the "best" alternative requires an understanding of the

context of a decision

the act of choosing one alternative from among a set of alternatives

decision making

in a state of uncertainty, the decision maker

does not know all of the alternatives or the associated risks

what are other behavioral elements of people that clash with the rational and logical thinking of classical model?

escalation of commitment risk propensity ethics intuition political forces

An organization using what form of management should be trying new approaches to learn what new results can be achieved, not automatically replicating what has been done before?

evidence based experimentation, hard facts, evidence based decisions, considering all risks

what type of management helps managers make rational decisions based on evidence? what are its 5 principles?

evidence-based management 1. face the hard facts and tell the ruth 2. be committed to being fact-based 3. encourage experimentation 4. look for risks in recommendations 5. avoid basing decisions on feeling or past experience

the conditions of the classical decision model are hard to obtain, but do exist true or false

false never or almost never exist

The following are the 6 steps of rational decision making: 1) Assign decision making authority 2) Identifying alternatives 3) Evaluating alternatives 4) Selecting the best alternative 5) Implementing the chosen alternative 6) Following up and evaluating the results true or false

false step 1 is identifying a decision situation

managers using the rational decision making model should evaluate and choose alternatives based on their

feasibility, satisfactoriness, affordable consequences

what is a political force or coalition as it relates to behavior and decision making?

forming an informal alliance to achieve a common goal

More acceptance of the final decision is likely and enhanced communication of the decision may result are advantages of

group decision making drawbacks are groupthink, settling on poor decisions, more time, dominations

When a group arrives at a decision that seems to not be in the best interest of the organization but resulted from a process that avoided any conflict, what has likely occurred?

groupthink

in which decision making model is monitoring progress and taking corrective action when needed a step?

i don't think its part of any models because that would be using the controlling function of management results can be evaluated and a change of action may also be decided on based on those results

A single group is designated to make a decision. The members of the group interact with each other, discuss, and ultimately make a decision.

interacting

what is a drawback to using the delphi group decision making method?

it takes a lot of time and resources requires experts

Group members first brainstorm alternatives independently; then these ideas are posted where everyone can read them and share their reactions

nominal

which form of group decision making requires a vote?

nominal

what are the three ways to make decisions in a group?

nominal delphi interacting

disney deciding to purchase Fox is what type of decision?

non-programmed less structured and not frequently recurring

Starbucks makes programmed decisions about ordering supplies what type of decision is this?

programmed recurring and predictable

the decision maker knows the alternatives but potential payoffs of each alternative are all associated with probability estimate

risk they know their options but their chance of working is up in the air

what model of decision making describes decision making as it is and not how it should be?

the administrative model it is like taking a picture vs describing how the picture would look

the level of ambiguity and chances of making a bad decision are highest in which condition?

uncertainty

bounded rationality

values and unconscious reflexes, skills...habits [and] less-than-complete information and knowledge (part of the administrative model)

what are the three characteristics of decision makers as identified by the administrative model?

- incomplete info - satisfice - bounded rationality

what are the 6 steps in the rational decision making model?

1. define the decision situation 2. identifying alternatives 3. evaluating alternatives 4. choosing best alternative 5. implementing chosen alternative 6. evaluating results

what are the four steps in the decision making process?

1. defining the nature of a decision situation 2. identifying alternatives 3. choosing the best alternative 4. putting chosen alternative into practice

what are the assumptions that make up the administrative model?

1. managers use incomplete and imperfect information 2. managers act according to bounded rationality 3. managers tend to satisfice 4. managers may arrive at alternatives that don't serve the interests of the organization

what are the steps in the classical decision making model? (3)

1. obtain complete and perfect information 2. eliminate uncertainty 3. assess the alternatives with total certainty in a rational manner and choose the best one

Which of the following describes the best decision a manager can make? 1. The manager chooses the course of action that will produce the highest quality outcome. 2. The manager chooses the most effective course of action as indicated by the particular circumstances 3. The manager chooses the course of action that will cost the least.

2. The manager chooses the most effective course of action as indicated by the particular circumstances

Which concept can be used by managers to develop a better understanding of their inherent biases and limitations? 1. classical model 2. bounded rationality 3. ethics 4. satisficing

2. bounded rationality

what is the classical model of decision making?

A prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action.