26. The process of forming
alliances among managers is called coalition building.
27. The administrative model closely resembles the real environment in
which most managers and decision makers operate.
28. The political model consists of vague problems and goals, limited
information about alternatives and their outcomes, and a satisficing choice for
resolving problems using intuition.
29. Nonprogrammed decisions require six steps, however, programmed
decisions being structured and well understood require only one step.
30. Managers confront a decision requirement in the form of either a
problem or an opportunity.
31. Once the problem or opportunity has been recognized and analyzed,
the decision-maker should implement the alternative.
32. Step one in the managerial decision-making process is recognition
of decision requirement.
33. For a non-programmed decision, feasible alternatives are hard to
identify and in fact are already available within the organization's rules and
34. For decisions made under conditions of low uncertainty, managers
may develop only one or two custom solutions that will satisfice for handling
35. The best alternative is the one in which the solution best fits
the overall goals and values of the organization and achieves the desired
results using the fewest resources.
36. The formulation stage involves the use of managerial,
administrative, and persuasive abilities to ensure that the chosen alternative
is carried out.
37. Risk propensity refers to the willingness to undertake risk with
the opportunity of gaining an increased payoff.
38. Feedback provides decision-makers with information that can
precipitate a new decision cycle.
39. In the implementation stage, decision makers gather information
that tells them how well the decision was implemented and whether it was
effective in achieving its goals.
40. Feedback is the part of monitoring that assesses whether a new
decision needs to be made.
41. People who prefer simple, clear-cut solutions to problems use the
42. Managers with an analytical decision style like to consider
complex solutions based on as much data as they can gather.
43. The behavioral style is often adopted by managers who like to
consider complex solutions based on as much data as they can gather.
44. The most effective managers are consistent in using their own
decision style rather than shifting among styles.
45. Most bad decisions are errors in judgment that originate in the
human mind's limited capacity and in the natural biases of the manager.
46. Justifying past decisions is a common bias of managers.
47. The rapid pace of today's business environment requires only top
management to make decisions and have the information, skills, and freedom they
need to respond immediately to problems and questions.
48. Most people underestimate their ability to predict uncertain
49. Brainstorming uses a face-to-face interactive group to
spontaneously suggest a wide range of alternatives for decision making.
50. Interestingly, major decisions in the business world are commonly
made by an individual.