Administrative Decision Making Model Quiz Questions

The given answer, "evolution and feedback," is incorrect. The last step in the process of decision-making is the "Implementation of the chosen alternative." After recognizing the decision requirement, developing alternatives, and evaluating them, the final step involves putting the chosen alternative into action. This step ensures that the decision is carried out and its effectiveness is assessed through feedback and evaluation.

During the step of diagnosis and analysis of causes in the decision-making process, the questions "when and how did it occur" are asked. This step involves identifying the problem or issue at hand and analyzing its underlying causes. By asking when and how the issue occurred, decision-makers can gain a better understanding of the timeline and circumstances surrounding the problem, which can help in formulating effective solutions.

Liza's situation is most consistent with the concept of bounded rationality. Bounded rationality refers to the idea that individuals have limited cognitive abilities and information-processing capabilities, which can hinder their ability to make fully rational decisions. In Liza's case, she feels that she does not have enough time to properly identify and process the data necessary for making decisions, suggesting that her decision-making process is constrained by her limited time and cognitive resources.

Programmed decisions are made in response to recurring problems in an organization. This means that these decisions are made repeatedly and follow a predetermined set of rules or procedures. Recurring problems are those that happen frequently or on a regular basis, and programmed decisions are designed to address these issues in a consistent and efficient manner. By having a predetermined course of action for recurring problems, organizations can save time and resources in decision-making processes.

Point-counterpoint is the correct answer because it refers to a technique of decision making where individuals are assigned to express competing points of view. This technique allows for a thorough exploration of different perspectives on a given issue, helping to identify strengths and weaknesses in arguments and facilitating a more informed decision-making process.

People with a behavioral style are concerned with the personal development of others and may make decisions that help others achieve their goals. This style focuses on understanding and influencing human behavior, and individuals with this style tend to prioritize interpersonal relationships and teamwork. They are often empathetic, supportive, and collaborative, and they strive to create a positive and harmonious work environment.

The decision-making model associated with satisficing, bounded rationality, and uncertainty is the administrative model. This model recognizes that decision-makers often have limited time, information, and cognitive abilities, leading them to make decisions that are "good enough" rather than optimal. It also acknowledges that decision-making is influenced by organizational and political factors, and that uncertainty is inherent in many decision situations.

The decision of Bank A and Bank B to merge their operations is an example of a non-programmed decision. This type of decision is unique and requires a custom approach as it is not a routine or repetitive decision. The merging of two banks involves various complex factors such as financial analysis, legal considerations, and strategic planning, which cannot be easily predetermined or automated. Therefore, it falls under the category of non-programmed decisions.

The given scenario describes Mark's choice to schedule his workers to work overtime instead of hiring more workers. This decision-making process involves analyzing the available alternatives and selecting the most suitable option. Mark is now monitoring the consequences of his decision, which further confirms that it falls under the category of decision-making.

Intuition is based on experience, as it is influenced by past knowledge and understanding. However, it is lacking in conscious thought, as intuition is often a subconscious and instinctive response. While conscious thought involves rational thinking and logical reasoning, intuition relies more on a gut feeling or instinctual understanding. Therefore, the correct answer suggests that intuition is rooted in experience but lacks conscious thought.

The classical model of decision making assumes that the decision-maker strives for conditions of certainty. This means that the decision-maker seeks to gather all relevant information and eliminate any uncertainty before making a decision. This assumption is based on the belief that with complete information and certainty, the decision-maker can make the best decision to maximize the economic return to the organization.

Adding a radiation therapy unit to a small community hospital would be considered a non-programmed decision. This is because it is a unique and complex decision that requires careful consideration and analysis. It is not a routine or repetitive decision that can be made based on established guidelines or procedures. The hospital would need to evaluate various factors such as the need for radiation therapy in the community, the financial implications, the availability of resources, and the potential impact on patient care. This decision would require gathering information, evaluating alternatives, and making a judgment based on the specific circumstances of the hospital.

The given answer, "descriptive; normative," is correct because it accurately describes the two approaches to decision-making. The descriptive approach focuses on how decisions are actually made by managers, observing and analyzing their behavior and decision-making processes. On the other hand, the normative approach prescribes how a decision-maker should ideally make decisions, providing guidelines and frameworks for effective decision-making.

Conditions of certainty is not a characteristic of administrative decision-making. In administrative decision-making, there is often limited information about alternatives and their outcomes, which means that decision-makers may not have all the necessary information to make a fully informed choice. Additionally, administrative decisions often involve vague problem and goals, as the issues they address may be complex and multifaceted. Finally, administrative decisions may involve satisfying choices, where decision-makers aim to find a solution that is "good enough" rather than the optimal or perfect solution.

Ambiguity refers to a situation where the decision-maker lacks clear information or understanding about the options or consequences. It involves multiple interpretations or possibilities, making it challenging for the decision-maker to make a choice. Uncertainty, on the other hand, implies a lack of knowledge about future outcomes, but it may still provide clear options. Certainty and brainstorming do not necessarily pose difficulties for decision-makers.

The term "normative" refers to a standard or norm that guides behavior. In the context of decision-making, the normative approach defines how a decision-maker should make decisions based on rationality, logic, and the pursuit of an optimal outcome. This approach focuses on establishing principles and guidelines for decision-making rather than describing or explaining how decisions are actually made (descriptive approach) or considering subjective values and beliefs (humanistic approach). The normative approach aims to provide a framework for making decisions that are considered to be correct or ideal.

If managers have a clear understanding of the goals they want to achieve but lack complete information about the available alternatives and future events, they are facing a condition of uncertainty. Uncertainty refers to a situation where there is a lack of knowledge or predictability about the outcomes or consequences of different choices. In this case, the managers may be unsure about the best course of action due to the incomplete information they have, leading to uncertainty in decision-making.

Satisficing is the concept of choosing the first available solution that meets the minimum requirements or satisfies the criteria, rather than seeking the optimal or best possible solution. It involves making decisions that are "good enough" rather than trying to maximize or optimize the outcome. This approach acknowledges the limitations of time, resources, and information, and aims to find a satisfactory solution within those constraints.

This question is asking for the meaning of a situation where the goals or problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable. This situation is referred to as ambiguity. Ambiguity occurs when there is a lack of clarity or uncertainty in a given situation, making it difficult to determine the best course of action or make informed decisions.

Wicked decisions are characterized by conflicts over goals and decision alternatives, rapidly changing circumstances, fuzzy information, and unclear links among decision elements. These decisions are complex and often involve multiple stakeholders with different perspectives and interests. Unlike programmed decisions that can be made based on predetermined rules or guidelines, wicked decisions require a more flexible and adaptive approach. They often involve trade-offs and uncertainties, making them challenging to resolve.

Miley, as a manager at Tinker Tools, is expected to make decisions that are best for the economic interests of the organization. The classical model of decision making is focused on rationality and efficiency, which aligns with Miley's need to make decisions that maximize economic benefits. This model emphasizes a systematic approach to decision making, involving gathering information, evaluating alternatives, and selecting the best option based on logical analysis. Therefore, the classical model is the most suitable for Miley in this scenario.

In the decision-making process, diagnosis is the step where managers analyze the underlying causal factors associated with the decision situation. This involves identifying and understanding the root causes of the problem or situation at hand. Through diagnosis, managers can gain a deeper understanding of the factors influencing the decision and make more informed choices.

The administrative model describes how managers actually make decisions in situations characterized by non-programmed decisions, uncertainty, and ambiguity, during decision making. This model recognizes that decision making is not always rational or based on a set of predetermined rules, but rather influenced by personal biases, intuition, and the availability of information. It emphasizes the importance of understanding the political and social aspects of decision making within an organization.

The finance managers at Big Bend Inc. made a financial blunder by solely relying on the previous year's sales to estimate sales for the upcoming year. This suggests that they were influenced by their initial impressions of the sales data without considering other factors or analyzing the current market conditions. By assuming that past performance will continue without considering any changes or fluctuations, they fell into the bias of being influenced by initial impressions. This bias can lead to inaccurate predictions and poor decision-making.

The correct answer is "nonprogrammed". This is because strategic decisions are typically complex and unstructured, involving unique situations that require creativity and judgment. Nonprogrammed decisions are those that are made in response to new and unfamiliar situations, where there is no pre-established routine or set of rules to follow. In contrast, structured and programmed decisions are routine and repetitive, while recurring decisions are those that happen repeatedly but may or may not be routine.