1. Decision making is easy,
given that everybody makes decisions everyday.
2. Decision-making must not be done amid
ever-changing factors, unclear information, and conflicting points of view.
3. A decision is a choice made from available
4. Programmed decisions are decisions that are
made for situations that have occurred often in the past and allow decision
rules to be developed to guide future decisions.
5. Two classifications of management decisions
are programmed and structured.
6. Two employees in Stacey's department quit
which is normal for her department. She is faced with the decision to fill
these positions. This would be considered a nonprogrammed decision.
7. Gerald's Groceries and Marty's Market decided
to merge their operations. This would be considered a nonprogrammed decision.
8. WorldCom, a telecommunications company,
decided to buy Skytel in 1999. This would be considered a programmed decision.
9. Uncertainty 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.
10. The main difference between risk and uncertainty is that with risk
you know the probabilities of the outcomes.
11. Uncertainty is by far the most difficult decision situation.
12. A situation where the goals to be achieved or the problem to be
solved is unclear, alternatives are difficult to define, and information about
outcomes is unavailable refers to ambiguity.
13. The classical decision making model assumes that the
decision-maker is rational, and makes the optimal decision each time.
14. Normative means it defines how a decision maker should make
15. The political model represents an "ideal" model of
decision making that is often unattainable by real people in real
16. The administrative model of decision making describes how managers
actually make decisions in difficult situations.
17. Normative decision theory recognizes that managers have only
limited time and cognitive ability and therefore their decisions are
characterized by bounded rationality.
18. Satisficing behavior occurs when we choose the first solution
alternative that satisfies minimal decision criteria regardless of whether
better solutions are expected to exist.
19. The administrative model is considered to be normative.
20. Goals often are vague, conflicting, and lack consensus among
managers, according to the administrative model of decision making.
21. According to the administrative model of decision making,
managers' searches for alternatives are limited because of human, information,
and resource constraints.
22. Intuition is a quick apprehension of a decision situation based on
past experience but without conscious thought.
23. According to both research and managerial experience, intuitive
decisions are best and always work out.
24. Managers need to take a balanced approach for effective decision
25. According to the New Manager Self-Test, linear means to use
primarily intuition to make decisions; nonlinear means using logical
rationality to make decisions.