Making Informed Decisions Quiz

Explanation
The correct answer is "All of the above" because decision making is goal-oriented, meaning that it involves setting objectives and making choices to achieve those goals. It is also a continuous or ongoing process because decisions need to be made regularly to adapt to changing circumstances. Additionally, decision making is an intellectual or rational process as it involves analyzing information, considering options, and evaluating potential outcomes before making a choice. Therefore, all three statements accurately describe decision making.

Explanation
The answer "All of the above" is correct because decision-making can occur at different levels within an organization. Strategic decisions are long-term and involve the overall direction and goals of the organization. Tactical decisions are medium-term and focus on specific actions to achieve strategic objectives. Operational decisions are short-term and deal with day-to-day activities. Therefore, all three levels of decision-making - strategic, tactical, and operational - are important and necessary for effective management.

Explanation
Top management is responsible for making high-level decisions that affect the overall direction and strategy of the organization. Policy decisions involve setting guidelines and principles that guide the organization's actions and decisions. Operative decisions, on the other hand, involve day-to-day operational matters and the implementation of policies. Therefore, both policy and operative decisions are usually taken by top management.

Explanation
Herbert Simon gave the Bounded Rationality Model of Decision Making. This model suggests that individuals have limited cognitive abilities and information processing capabilities, leading them to make decisions that are rational within the bounds of their constraints. Simon argued that decision-makers often rely on heuristics and satisficing strategies rather than fully optimizing their choices. This model has been influential in understanding how individuals make decisions in real-world settings where perfect rationality is not always possible.

Explanation
The correct answer is Charles Lindblom. Charles Lindblom is known for his work on the Incremental Model of decision-making. This model suggests that decision-making is a gradual and incremental process, where decisions are made by making small adjustments to existing policies or practices rather than through radical changes. Lindblom argued that this approach allows decision-makers to navigate complex and uncertain environments more effectively.

Explanation
Pareto Analysis states that 20% of our activities will account for 80% of our results. This analysis technique is based on the Pareto Principle, also known as the 80/20 rule, which suggests that a small number of causes or inputs will typically lead to a large majority of the effects or outputs. By identifying and focusing on the vital few activities that have the greatest impact, Pareto Analysis helps prioritize efforts and resources for maximum efficiency and effectiveness.

Explanation
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This framework is commonly used in business and strategic planning to analyze and assess the internal and external factors that can impact an organization. Strengths and weaknesses refer to the internal factors, such as the organization's resources, capabilities, and limitations. Opportunities and threats, on the other hand, relate to the external factors, such as market trends, competition, and potential risks. By conducting a SWOT analysis, organizations can identify their strengths to leverage, weaknesses to improve, opportunities to pursue, and threats to mitigate.

Explanation
Yehezkel Dror's Optimal Model of policy-making emphasizes a comprehensive approach that incorporates qualitative assessments, quantitative analysis, and meta-policy making, which involves thinking about the policy-making process itself. The model suggests that effective policy-making should not rely solely on quantitative (numerical data and statistical analysis) or qualitative (descriptive analysis, case studies, and expert judgments) methods alone but should integrate various methodologies, including higher-level strategic thinking and meta-policy considerations. Therefore, suggesting that the Optimal Model excludes either quantitative or qualitative characteristics does not accurately represent Dror's approach, making "Both A and B" the correct answer as these are not characteristics that are excluded from his model.

Explanation
The 4 R's of decision making include Results, Resources, and Risk. Recycle is not included in the 4 R's of decision making. Recycle is not typically considered a factor in decision making processes, as it is more related to environmental sustainability and waste management. The 4 R's focus on evaluating the potential outcomes, available resources, and potential risks associated with a decision, but recycling does not fall under any of these categories.

Explanation
Programmed decisions refer to decisions that are made in response to recurring problems or situations that have been encountered before. These decisions are typically based on established rules, procedures, or guidelines. They are often automated or routine in nature and require little to no creativity or judgment. Since programmed decisions are made in response to repetitive problems, they tend to have a short-term impact as they are aimed at resolving immediate issues rather than long-term strategic planning. Therefore, the given statement that programmed decisions deal with repetitive problems and have a short-term impact is true.