LOMA 335: THE INSURANCE COMPANY AND
OPERATIONS MANAGEMENT (MODULE 3)
A ____________ is a choice about a future action. - Answer -decision
1) ____________ level: Strategic decisions focus on establishing and revising corporate
goals and strategies.
2) ____________ level: Business decisions focus on implementing corporate strategies
for a division or business segment.
3) ______________ level: Operational decisions focus on the day-to-day
implementation of business-level strategies. - Answer -1) Corporate
2) Business
3) Operational
In efficient and effective organizations, decision makers at the business and operational
levels are ____________ - in other words, they have the necessary authority and
responsibility - to make decisions appropriate for their level in the company. - Answer -
empowered
______ ______ decisions are infrequent decisions that can be made quickly at an
individual level because the risks involved with these decisions are relatively small. -
Answer -Ad hoc
Good business questions relate to the five Ws and also answer the question _______. -
Answer -Five W's - who, what, when, where, why
How
Questions like these call for answers that are __________, meaning verifiable or
evidence-based. - Answer -empirical
The first step of the decision making process is often subject to __________ errors,
where people may identify and define a problem too narrowly because they assume
they know what the issue is. - Answer -framing
Decision _____________ are the options a decision maker considers before selecting a
future course of action. - Answer -alternatives
_____________ bias is the human tendency to seek, interpret, and remember
information that confirms preexisting beliefs. - Answer -Confirmation
,_______ refers to unprocessed facts and without some context it's meaningless. -
Answer -Data
_____________ is a collection of data that is converted into a form that is meaningful or
useful for the accomplishment of some objective. - Answer -Information
In general, organizations try to make relevant information available for decision making
through __________-wide reporting, which is the use of knowledge management
systems and informative updates across operations such that employees at every level
of an organization can access the information that is relevant and necessary for their
roles. - Answer -enterprise
Big-_____ decisions are infrequent, unfamiliar decisions that can have a profound effect
on a company's operations and future success.
Ex: a merger or acquisition, a major shift in corporate strategy, a major capital purchase
- Answer -bet
Cross-_________ decisions are familiar decisions that can have broad organizational
impact. - Answer -cutting
Like ad hoc decisions, ___________ decisions are typically low risk but they involve
familiar and frequent decisions. - Answer -delegated
____________: general rules appropriate for certain situations. - Answer -Heuristics
Heuristics are sometimes appropriate and useful in business operations, in particular for
____ ____ decisions that are low risk and low occurrence. - Answer -ad hoc
One of the most difficult aspects of decision making is identifying the ___________ or
need. - Answer –problem
When making big-bet decisions, dissenting opinions are crucial because of the high
costs of making a bad decision.
As a result, they often include a formal position known as a __________ ___________,
which is a person assigned to make a case against a decision-making team's proposal.
- Answer -devil's advocate
At the evaluation an analysis stage of decision making, teams may become subject to
analysis ____________ - spending excessive time and energy in gathering information.
Note: This is more common in big-bet decisions where cost of a wrong decision is high.
- Answer -paralysis
, _____________ is a probability of occurrence with no (or negligible) potential for
deviation from the expected outcome; in other words, the outcome of a decision is
known based on available decision. - Answer -Certainty
Decision makers view risk and certainty on a _____________. - Answer -continuum
The 4 levels of uncertainty:
Level 4: _______ uncertainty - Not even a range of possible future outcomes
Level 3: range of ________- Range of possible future outcomes
Level 2: ____________ futures - Limited set of possible future outcomes, one of which
will occur
Level 1: _________ enough future - single view of the future - Answer -true
futures
alternative
clear
A level ____ decision is relatively straightforward; relevant data is available for reliably
predicting a future outcome. - Answer -1
At level ___, the future can accurately be predicted to be one of a few scenarios, but
decision makers can't identify which outcome will definitely occur. - Answer -2
At level ____, a manager faces a range of possible outcomes and can't reliably limit the
options to a small set of scenarios because the outcome might lie anywhere in the
range of possibilities. - Answer -3
Level ____ indicates so many potential outcomes that it's nearly impossible to identify
relevant variables or construct viable scenarios. - Answer -4
A decision log can also reduce __________ bias - the tendency of decision makers to
believe, after a decision is implemented and a certain result occurs, that they knew
during the decision-making process that a certain decision would result in that outcome.
- Answer -hindsight
Big ______ is a term used to describe large amounts of unprocessed information
gathered from various sources, in various formats, and at a rapid speed. - Answer -data
A decision ____________ is the collection of information, alternatives, values, and
preferences available to a decision maker at the time of a decision. - Answer -
environment
OPERATIONS MANAGEMENT (MODULE 3)
A ____________ is a choice about a future action. - Answer -decision
1) ____________ level: Strategic decisions focus on establishing and revising corporate
goals and strategies.
2) ____________ level: Business decisions focus on implementing corporate strategies
for a division or business segment.
3) ______________ level: Operational decisions focus on the day-to-day
implementation of business-level strategies. - Answer -1) Corporate
2) Business
3) Operational
In efficient and effective organizations, decision makers at the business and operational
levels are ____________ - in other words, they have the necessary authority and
responsibility - to make decisions appropriate for their level in the company. - Answer -
empowered
______ ______ decisions are infrequent decisions that can be made quickly at an
individual level because the risks involved with these decisions are relatively small. -
Answer -Ad hoc
Good business questions relate to the five Ws and also answer the question _______. -
Answer -Five W's - who, what, when, where, why
How
Questions like these call for answers that are __________, meaning verifiable or
evidence-based. - Answer -empirical
The first step of the decision making process is often subject to __________ errors,
where people may identify and define a problem too narrowly because they assume
they know what the issue is. - Answer -framing
Decision _____________ are the options a decision maker considers before selecting a
future course of action. - Answer -alternatives
_____________ bias is the human tendency to seek, interpret, and remember
information that confirms preexisting beliefs. - Answer -Confirmation
,_______ refers to unprocessed facts and without some context it's meaningless. -
Answer -Data
_____________ is a collection of data that is converted into a form that is meaningful or
useful for the accomplishment of some objective. - Answer -Information
In general, organizations try to make relevant information available for decision making
through __________-wide reporting, which is the use of knowledge management
systems and informative updates across operations such that employees at every level
of an organization can access the information that is relevant and necessary for their
roles. - Answer -enterprise
Big-_____ decisions are infrequent, unfamiliar decisions that can have a profound effect
on a company's operations and future success.
Ex: a merger or acquisition, a major shift in corporate strategy, a major capital purchase
- Answer -bet
Cross-_________ decisions are familiar decisions that can have broad organizational
impact. - Answer -cutting
Like ad hoc decisions, ___________ decisions are typically low risk but they involve
familiar and frequent decisions. - Answer -delegated
____________: general rules appropriate for certain situations. - Answer -Heuristics
Heuristics are sometimes appropriate and useful in business operations, in particular for
____ ____ decisions that are low risk and low occurrence. - Answer -ad hoc
One of the most difficult aspects of decision making is identifying the ___________ or
need. - Answer –problem
When making big-bet decisions, dissenting opinions are crucial because of the high
costs of making a bad decision.
As a result, they often include a formal position known as a __________ ___________,
which is a person assigned to make a case against a decision-making team's proposal.
- Answer -devil's advocate
At the evaluation an analysis stage of decision making, teams may become subject to
analysis ____________ - spending excessive time and energy in gathering information.
Note: This is more common in big-bet decisions where cost of a wrong decision is high.
- Answer -paralysis
, _____________ is a probability of occurrence with no (or negligible) potential for
deviation from the expected outcome; in other words, the outcome of a decision is
known based on available decision. - Answer -Certainty
Decision makers view risk and certainty on a _____________. - Answer -continuum
The 4 levels of uncertainty:
Level 4: _______ uncertainty - Not even a range of possible future outcomes
Level 3: range of ________- Range of possible future outcomes
Level 2: ____________ futures - Limited set of possible future outcomes, one of which
will occur
Level 1: _________ enough future - single view of the future - Answer -true
futures
alternative
clear
A level ____ decision is relatively straightforward; relevant data is available for reliably
predicting a future outcome. - Answer -1
At level ___, the future can accurately be predicted to be one of a few scenarios, but
decision makers can't identify which outcome will definitely occur. - Answer -2
At level ____, a manager faces a range of possible outcomes and can't reliably limit the
options to a small set of scenarios because the outcome might lie anywhere in the
range of possibilities. - Answer -3
Level ____ indicates so many potential outcomes that it's nearly impossible to identify
relevant variables or construct viable scenarios. - Answer -4
A decision log can also reduce __________ bias - the tendency of decision makers to
believe, after a decision is implemented and a certain result occurs, that they knew
during the decision-making process that a certain decision would result in that outcome.
- Answer -hindsight
Big ______ is a term used to describe large amounts of unprocessed information
gathered from various sources, in various formats, and at a rapid speed. - Answer -data
A decision ____________ is the collection of information, alternatives, values, and
preferences available to a decision maker at the time of a decision. - Answer -
environment
