Chapter 6 DECISION MAKING: THE ESSENCE OF THE MANAGER ’ S JOB

Thinking about management issues ? 1- Why is decision-making often described as the essence of the manager ’ s job? As shown in Exhibit 6.5, decisions are As shown in Exhibit 6.5, decisions are made in all four functions of management. Almost anything a manager does in terms of planning, organizing, leading, and controlling involves decision-making. The pervasiveness/frequency of decision making in management explains why managers are often called decision makers.

Thinking about management issues ? 2- How might an organization ’ s culture influence the way managers make decisions ? 2- How might an organization ’ s culture influence the way managers make decisions ?

Thinking about management issues ? 3- All of us bring biases to the decision we make? What types of biases might a manager have ? What would be the drawbacks of having biases ?could there be any advantages to having biases ?explain. What are the implications for managerial decision making ? 3- All of us bring biases to the decision we make? What types of biases might a manager have ? What would be the drawbacks of having biases ?could there be any advantages to having biases ?explain. What are the implications for managerial decision making ?

Thinking about management issues ? 4- Would you call yourself a systematic or intuitive thinker? What are the decision-making implications of these labels? What are the implications for choosing an employer? Student responses to this will vary. A systematic thinker would be one who is more logical and rational in searching for and processing information. An intuitive thinker would rely more on instinct\natural feeling and past experiences in searching for and processing information. The implications for choosing an employer are that organizations need both systematic and intuitive thinkers. Each of these styles would provide a different perspective on situations.

5- “ As managers use computer and software tools more often, they ’ ll be able to make more rational decisions. ” Do you agree or disagree with that statement? Why? Although computer and software tools will allow Although computer and software tools will allow managers to more easily gather information and analyze it, it ’ s doubtful that utilizing computers will allow managers to be more rational. If we look at the assumptions of rationality (problem clarity, goal orientation, known options, clear preferences, and so forth, even by adding computers to the decision making process, managers ’ decision-making still won ’ t be perfectly rational.

If a manager was purchasing a computer system, issues such as price and model are examples of which part of the decision- making process? If a manager was purchasing a computer system, issues such as price and model are examples of which part of the decision- making process? a.problem identification a.problem identification b.criteria weight allocation b.criteria weight allocation c.identifying decision criteria c.identifying decision criteria d.evaluating decision effectiveness d.evaluating decision effectiveness e.implementing the alternative e.implementing the alternative

Which of the following is the step in the decision-making process that follows identifying a problem and decision criteria? Which of the following is the step in the decision-making process that follows identifying a problem and decision criteria? a.allocating weights to the criteria a.allocating weights to the criteria b.analyzing the alternatives b.analyzing the alternatives c.selecting the best alternative c.selecting the best alternative d.implementing the alternative d.implementing the alternative e.evaluating the decision's effectiveness e.evaluating the decision's effectiveness

Managers aren't likely to characterize something as a problem if they perceive ______________. Managers aren't likely to characterize something as a problem if they perceive ______________. a.they don't have authority to act. b.pressure to act. a.they don't have authority to act. b.pressure to act. c.a discrepancy. c.a discrepancy. d.they have sufficient resources. d.they have sufficient resources. e.they have budgetary authority. e.they have budgetary authority.

"A discrepancy between an existing and a desired state of affairs" describes which of the steps in the decision-making process? "A discrepancy between an existing and a desired state of affairs" describes which of the steps in the decision-making process? a.criteria weight allocation a.criteria weight allocation b.analysis of alternatives b.analysis of alternatives c.problem identification c.problem identification d.decision effectiveness evaluation d.decision effectiveness evaluation e.decision criteria identification e.decision criteria identification

Which of the following is not a valid assumption about rationality? Which of the following is not a valid assumption about rationality? a.The problem is clear and unambiguous. a.The problem is clear and unambiguous. b.A single well-defined goal is to be achieved. b.A single well-defined goal is to be achieved. c.Preferences are clear. c.Preferences are clear. d.Preferences are constantly changing d.Preferences are constantly changing