Essence of Management

A decision-making process is a series or chain of related steps or interconnected stages that lead to an action or to an outcome and assessment.

True / False
True
Programmed decisions are more likely to occur at the top management level.

True / False
False
A company decision to diversify into new products and markets is an example of non programmed decisions.

True / False
False
Preventive maintenance is reactive.

True / False
False
A manager making a decision to improve post-sale support based on a survey is an example of systematic decision making.

True / False
True
The first seven steps in the decision making process are the decision formulation stages while the last two steps are the decision implementation process.

True / False
True
According to the text, the Swiss market share of watch making collapsed because of "defining problems in terms of assumed solutions."

True / False
False
Growth tendency refers to the degree of pressure on time for a prompt decision.

True / False
False
Benchmarking is one source of alternative solutions that is coming into wider use.

True / False
True
The firing of an employee may cause cognitive dissonance within a company.

True / False
True
The nominal group technique is only used in industries.

True / False
False
A major advantage of the Delphi technique over other group decision-making techniques is that bias effects of group interactions are eliminated.

True / False
True
MIS is used to collect data, store and process those data, and then present useful and timely information to managers.

True / False
True
In the last five years, the amount of computer power a dollar can buy has decreased.

True / False
False
Escalation of commitment is a positive force in a company.

True / False
False
benchmarking:
Studying operations in other organizations or other divisions of the company to learn what techniques are successful and to establish high standards for operations.

bounded rationality:
The concept that a manager's freedom to make totally rational decisions is restricted by internal and external environmental factors and by the manager's own characteristics and decision-making abilities.

brainstorming:
A small group process designed to free participants from stereotypical thinking by having them uncritically express ideas, no matter how seemingly bizarre, and in which evaluation and judgement are deferred until the end of the process.

cognitive dissonance:
The mental state caused by the realization that the current situation is different from what has been desired.

decision:
A choice, whether conscious or not, among available alternatives.

decision formulation:
The process of (1) establishing specific goals and objectives; (2) identifying the need for a decision; (3) establishing priorities; (4) determining the causes of the problem; (5) collecting information and developing possible alternative courses of action; (6) evaluating the alternatives; and (7) selecting one of the alternatives.

decision implementation:
The process of putting the decision made into action, and of following up the results and possibly communicating feedback and deciding on modifications in the ways in which the decision is being applied.

decision implementation:
The process of putting the decision made into action, and of following up the results and possibly communicating feedback and deciding on modifications in the ways in which the decision is being applied.

decision-making process:
A series of related steps that lead to a decision, its implementation, and follow-up.

Delphi technique:
A process for arriving at an evaluation of decisions, in which selected individuals are asked to respond individually to key questions about a problem, then are provided with a summary of the responses all members have given and invited to respond again.

escalation of commitment:
An increased desire to support a decision that has been made, despite having received evidence that it may not be the optimum decision.

intuitive decision:
A decision based primarily on an almost unconscious reliance on the decision maker's experience, without a conscious rational analysis having been made.

local area network (LAN):
A system in which separate computers are linked for communication.

management information system (MIS):
A composite system that entails collecting, recording, and storing information for later retrieval to assist in management decision making.

nominal group technique (NGT):
A group decision-making process in which selected individuals each submit possible solutions to a problem, then discuss them and attempt to reach consensus.

proactive decision:
A decision made in anticipation of an existing situation or an expected change in conditions.

process improvement team:
A group brought together from different functions and levels of an organization, to consider ways in which the organization's activities could be improved.

programmed decision:
A decision for repetitive or routine problems, for which the responses have been decided already and made known to the persons who will make the decisions.

reactive decision:
A decision made in response to a change or situation.

systematic decision making:
An organized, exacting, information-driven process, applying logic in choosing among alternatives.