general business data bank

Scenario - Vaughn Bately

Vaughn Bately manages a group of eight electrical engineers at Defiance Designs. His team is highly trained and well respected by experts both inside and outside the company. Recently one of Vaughn's engineers suggested a new technique for the development and use of an argon laser. There appeared to be rich potential for this technology, but Vaughn wasn't certain that developing this technology was the best use of his limited resources. Vaughn was facing a significant decision.

1. If Vaughn uses the classical model of decision making, which of these assumptions would he reject?

a.	The decision maker is rational and uses logic in assigning values and evaluating alternatives.
b.	The desired decision will maximize attainment of organizational objectives.
c.	The decision-maker strives for complete certainty, gathering complete information.
d.	Problems are precisely formulated and defined.
e.	All of these are accepted.

2. If Vaughn uses the administrative model of decision making, which of these assumptions would he reject?

a.	Decision-makers settle for a satisficing rather than maximizing solution
b.	The search for alternatives is limited because of information, human and resource constraints
c.	Rational procedures will normally lead to the best solution in a complex organization
d.	Decision objectives are often vague, conflicting, and lack consensus among managers
e.	All of these are accepted

3. Which of the following steps would Vaughn not take in making his decision?

a.	Sense and recognize the decision requirement
b.	Implement the chosen alternative
c.	Create a set of alternatives
d.	Diagnose and analyze problem causes
e.	All of these would be included

COMPLETION

1. A(n) ____________________ is a choice made from available alternatives.

2. ____________________ is the process of identifying problems and opportunities and then resolving them.

3. ____________________ decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future.

4. ____________________ decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

5. ____________________ means that all the information the decision-maker needs is fully available.

6. ____________________ means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to chance.

7. Under conditions of ____________________, managers know what goal they wish to achieve, but information about alternatives and future events is incomplete.

8. ____________________ means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.

9. The ____________________ model of decision making is based on economic assumptions.

10. A normative decision making model defines how a manager ____________________ make decisions.