Decision making process
What is the first step of the decision making process?
Identify a problem
What are the three approaches managers use to make decisions?
Rational Model
Bounded Rationality
Intuitive Decision making
Define ethics
the rules and principles that define right and wrong behaviour
Why is creativity an important skill to have as a manager in relation to decision-making?
It leads to better, more useful ideas and increases chances of identifying all possible alternatives.
What are the 3 decision-making conditions?
Certainty, risk and uncertainty
In decision making, what are the criterias used for?
To compare and evaluate alternatives
Situation - Giving too much focus on the present and not enough on the future is a form of what decision making?
Bounded Willpower
Who is the person that must make decisions & consider who is affected and impacted the most? (2x points)
MANAGERS!
True or false? Design thinking should be avoided in decision-making as it is not effective and focuses on the wrong information.
FALSE. It is a powerful problem-solving approach encouraging creativity, empathy and rationality.
True or false? Structured problems are new and unusual.
FALSE — Structured problems are straightforward, familiar, and easily defined. Unstructured problems are new and unusual. Information is often ambiguous or incomplete.
Name 3 steps in the 8 steps decision making process?
Identify problem, Identify criteria, Allocate weights, Develop alternatives, Analyze alternatives, Select an alternative, Implement, Evaluate effectiveness.
Situation - When implementing shortcuts to help make sense of things, which form of decision making is used?
Bounded Rationality
Decisions made solely on the basis of outcomes or consequences. Is which outcome?
Utilitarian view
Why should managers be careful when using heuristics, or “rules of thumb” in decision making?
They risk ignoring important information. Also leads to biases and errors.
What are the 2 different types of planning? (chap 4)
Informal and Formal
What are the 4 factors that affect decision making?
1. planning
2. leading
3. organizing
4. controlling
Situation - If your personal ethical preferences may not be in sync with your actual behaviour, which form of decision making is being used?
Bounded Ethicality
Name 3 out of the 7 actions to improve ethical behavior…
1.Hire people with high ethical standards
2. Build a code of ethics
3. Support employees dealing with ethical dilemmas
What is the difference between participative and autocratic in decision-making? (2x points)
Participative is collaborative, where the leader involves the team in the decision-making
Autocratic does not ask for external input. The autocratic leader makes the decision himself to achieve faster results.
What is the difference between a manager and a leader?
Manager: focuses on planning, organizing, and controlling resources to achieve specific goals
Leader: sets the vision and inspires others to achieve a shared goal (visionary)
Why is the decision-making process considered comprehensive rather than just “choosing among alternatives”?
Because it involves multiples steps, analysis, and evaluation to make sure that the best possible choice is made
Experienced Based, Affect-Initiated, Cognitive Based, Subconcious Mental processing and ethics-based decisions are factors of _____
Intuition
Name the four views of ethics…
Utilitarian view
Rights view
Theory of justice view
Integrative social contracts theory
What tool is used for measuring and monitoring performance, analyzing patterns and trends, and providing accurate insight?
Big data
An optimistic manager will follow a maximax choice regarding the decision making process. What would a pessimistic manager pursue?
maximin