3.2.2 Understanding management decision making

    Cards (38)

    • 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
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