3.2.2 Understanding management decision making

• Gathering relevant information is the first step in the management decision-making process.


  True
• Non-programmed decisions require creative problem-solving and are more flexible but less efficient than programmed decisions.


  True
• An example of a programmed decision is ordering office supplies
• Match the type of decision with its characteristic:

  Programmed Decisions ↔️ Routine and repetitive decisions using established policies

  Non-Programmed Decisions ↔️ Novel and complex decisions requiring creative problem-solving
• Programmed decisions are used for tasks like launching a new product.

  False
• Managers only make programmed decisions.

  False
• Effective decision-making impacts a business's performance, innovation, and risk management
• Match the type of decision with its definition and examples:

  Programmed Decisions ↔️ Routine decisions using established procedures | Ordering office supplies

  Non-Programmed Decisions ↔️ Novel decisions requiring creative problem-solving | Launching a new product
• What is an example of a programmed decision in a business?

  Ordering office supplies
• What is the final step in the decision-making process?

  Selecting the decision
• What are programmed decisions characterized by?

  Routine and efficiency
• Steps in using a decision tree for decision-making

  1️⃣ Identify the decision point

  2️⃣ Create a diagram with possible outcomes

  3️⃣ Assign probabilities to outcomes

  4️⃣ Calculate expected values

  5️⃣ Choose the path with the highest value
• Programmed decisions are evaluated based on whether they follow established policies and achieve expected outcomes
• Steps in the management decision-making process

  1️⃣ Gathering relevant information

  2️⃣ Analyzing the situation

  3️⃣ Evaluating alternative options

  4️⃣ Selecting the most appropriate decision
• Programmed decisions are routine decisions made using established procedures
• An example of a non-programmed decision is launching a new product
• What are the two main types of management decisions?

  Programmed and non-programmed
• Management decision making involves identifying and choosing the best course of action
• What are the characteristics of programmed decisions?

  Structured and efficient
• After selecting a decision, managers must implement and review its effectiveness
• What is an example of a non-programmed decision in a business?

  Launching a new product
• Management decision making is the process of identifying and choosing the best course of action to solve a problem or achieve a goal
• Non-programmed decisions require creative problem-solving and are more flexible
• What is the main advantage of cost-benefit analysis?

  Quantifiable and comprehensive
• What is emphasized when evaluating non-programmed decisions?

  Creativity and adaptability
• Management decision making is the process of identifying and choosing the best course of action to solve a problem
• Programmed decisions are routine, repetitive decisions made using established policies and procedures
• Non-programmed decisions require creative problem-solving and are more flexible than programmed decisions.


  True
• Effective decision-making is crucial for business innovation and risk management.


  True
• What type of decisions require creative problem-solving and flexibility?

  Non-programmed
• Steps in the management decision-making process

  1️⃣ Gathering relevant information

  2️⃣ Analyzing the situation

  3️⃣ Evaluating alternative options

  4️⃣ Selecting the most appropriate decision
• What are the characteristics of non-programmed decisions?

  Creative and flexible
• Non-programmed decisions require more time and resources than programmed decisions.


  True
• Key responsibilities of managers in decision-making

  1️⃣ Gathering Information

  2️⃣ Analyzing Options

  3️⃣ Selecting Decisions

  4️⃣ Implementing and Reviewing
• The decision-making process begins with gathering relevant information
• Selecting the most appropriate decision should align with business objectives.

  True
• What role does organizational culture play in decision-making?

  Shapes approaches and styles
• Effective decisions should be adaptable to changing circumstances.


  True