MGMT 309 || ACKNOWLEDGED ANSWERS 100%.
Decision Making correct answers The act of choosing one alternative from among a set of
alternatives
Decision-making process correct answers Recognizing and defining the nature of a decision
situation, identifying alternatives, choosing the "best" alternative, and putting it into practice
Programmed Decision correct answers A decision that is fairly structured or recurs with some
frequency (or both)
ex: Starbucks employees are trained in exact procedures for brewing coffee
Non-programmed decisions correct answers A decision that is relatively unstructured and occurs
much less often than a programmed decision
ex: Disney's decision to by pixar was non-programmed
State of Certainty correct answers A condition in which the decision maker knows with
reasonable certainty what the alternatives are and what conditions are associated with each
alternative
ex: Singapore Airlines can only by jumbo jets from Airbus or Boeing
State of Risk correct answers A condition in which the availability of each alternative and its
potential payoffs and coast are all associated with probability estimates
ex: Ford changing the F-150 bed from steel to aluminium
State of Uncertainty correct answers A condition in which the decision maker does not know all
the alternatives, the risks associated with each, or the consequences each alternative is likely to
have
ex: 10 Minute Manicure at the airport saw fast growth but when the economic downturn the
company had to rethink its plan
,Classical Decision Model correct answers A perspective approach to decision making that tells
managers how they should make decisions; assuming that managers are logical and rational and
that their decisions will be in the best interest of the company
Steps in Rational Decision Making correct answers 1. Recognizing and defining the decision
situation
2. Identifying alternatives
3. Evaluating alternatives
4. Selecting the best alternatives
5. Implementing the chosen alternative
6. Following up and evaluating the results
Recognizing and defining the decision situation correct answers Some stimulus indicates that a
decision must be made. The stimulus may be positive or negative
ex: a plant manager sees that employee turnover has increased by 5 percent
Identifying alternatives correct answers Both obvious and creative alternatives are desired. In
general, the more important the decision, the more alternatives should be generated
ex: the plant manager can increase wages, increase benefits, or change hiring standards
Evaluating alternatives correct answers Each alternative is evaluated to determine its feasibility,
its satisfactoriness, and its consequences
ex: increasing benefits may not be feasible, increasing wages and changing hiring standards may
satisfy all conditions
, Selecting the best alternatives correct answers Consider all situational factors and choose the
alternative that best fits the managers situation
ex: changing hiring standards will take an extended period of time to cut turnover, so increase
wages
Implementing the chosen alternative correct answers The chosen alternative is implemented into
the organizational system
ex: the plant manager may need permission from corporate headquarters. The human resource
department establishes a new wage structure
Following up and evaluating the results correct answers At some point in the future, the manager
should ascertain the extent to which the alternative chosen in step 4 and implemented in step 5
has worked
ex: the plant manager notes that, 6 months later, turnover dropped to its previous level
Evidence- based management (EBM) correct answers Uses rationality and evidence when
making decisions
Behavioral Elements in decision making correct answers Administrative model, Political Factors,
Intuition, Escalation of commitment, Risk Propensity, and Ethics
Administrative Model correct answers A decision making model that argues that decision makers
(1) use incomplete and imperfect information, (2) are constrained by bounded rationality, and (3)
tend to "satisfice" when making decisions
Bounded Rationality correct answers A concept suggesting that decision makers are limited by
their values and unconscious reflexes, skills, and habits
Decision Making correct answers The act of choosing one alternative from among a set of
alternatives
Decision-making process correct answers Recognizing and defining the nature of a decision
situation, identifying alternatives, choosing the "best" alternative, and putting it into practice
Programmed Decision correct answers A decision that is fairly structured or recurs with some
frequency (or both)
ex: Starbucks employees are trained in exact procedures for brewing coffee
Non-programmed decisions correct answers A decision that is relatively unstructured and occurs
much less often than a programmed decision
ex: Disney's decision to by pixar was non-programmed
State of Certainty correct answers A condition in which the decision maker knows with
reasonable certainty what the alternatives are and what conditions are associated with each
alternative
ex: Singapore Airlines can only by jumbo jets from Airbus or Boeing
State of Risk correct answers A condition in which the availability of each alternative and its
potential payoffs and coast are all associated with probability estimates
ex: Ford changing the F-150 bed from steel to aluminium
State of Uncertainty correct answers A condition in which the decision maker does not know all
the alternatives, the risks associated with each, or the consequences each alternative is likely to
have
ex: 10 Minute Manicure at the airport saw fast growth but when the economic downturn the
company had to rethink its plan
,Classical Decision Model correct answers A perspective approach to decision making that tells
managers how they should make decisions; assuming that managers are logical and rational and
that their decisions will be in the best interest of the company
Steps in Rational Decision Making correct answers 1. Recognizing and defining the decision
situation
2. Identifying alternatives
3. Evaluating alternatives
4. Selecting the best alternatives
5. Implementing the chosen alternative
6. Following up and evaluating the results
Recognizing and defining the decision situation correct answers Some stimulus indicates that a
decision must be made. The stimulus may be positive or negative
ex: a plant manager sees that employee turnover has increased by 5 percent
Identifying alternatives correct answers Both obvious and creative alternatives are desired. In
general, the more important the decision, the more alternatives should be generated
ex: the plant manager can increase wages, increase benefits, or change hiring standards
Evaluating alternatives correct answers Each alternative is evaluated to determine its feasibility,
its satisfactoriness, and its consequences
ex: increasing benefits may not be feasible, increasing wages and changing hiring standards may
satisfy all conditions
, Selecting the best alternatives correct answers Consider all situational factors and choose the
alternative that best fits the managers situation
ex: changing hiring standards will take an extended period of time to cut turnover, so increase
wages
Implementing the chosen alternative correct answers The chosen alternative is implemented into
the organizational system
ex: the plant manager may need permission from corporate headquarters. The human resource
department establishes a new wage structure
Following up and evaluating the results correct answers At some point in the future, the manager
should ascertain the extent to which the alternative chosen in step 4 and implemented in step 5
has worked
ex: the plant manager notes that, 6 months later, turnover dropped to its previous level
Evidence- based management (EBM) correct answers Uses rationality and evidence when
making decisions
Behavioral Elements in decision making correct answers Administrative model, Political Factors,
Intuition, Escalation of commitment, Risk Propensity, and Ethics
Administrative Model correct answers A decision making model that argues that decision makers
(1) use incomplete and imperfect information, (2) are constrained by bounded rationality, and (3)
tend to "satisfice" when making decisions
Bounded Rationality correct answers A concept suggesting that decision makers are limited by
their values and unconscious reflexes, skills, and habits
