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Chapter6DecisionMaking:TheEssenceoftheManager’sJob
True/FalseQuestions
THEDECISION-MAKINGPROCESS
Problemidentificationispurelyobjective.
Thesecondstepinthedecision-makingprocessisidentifyingaproblem.
Adecisioncriteriondefineswhatisrelevantinadecision.
Thefourthstepofthedecision-makingprocessrequiresthedecisionmakertolistviablealternativesthatcouldresolvetheproblem.
Oncethealternativeshavebeenidentified,adecisionmakermustanalyzeeachone.
Thestepinthedecision-makingprocessthatinvolveschoosingabestalternativeistermedimplementation.
THEMANAGERASDECISIONMAKER
Makingdecisionsiswiththeessenceofmanagement.
Managerialdecisionmakingisassumedtoberational.
Oneassumptionofrationalityisthatwecannotknowallofthealternatives.
Managerstendtooperateunderassumptionsofboundedrationality.
StudiesoftheeventsleadinguptotheChallengerspaceshuttledisasterpointtoanescalationofcommitmentbydecisionmakers.
Managersregularlyusetheirintuitionindecisionmaking.
Rationalanalysisandintuitivedecisionmakingarecomplementary.
Programmeddecisionstendtoberepetitiveandroutine.
Rulesandpoliciesarebasicallythesame.
Apolicyisanexplicitstatementthattellsamanagerwhatheorsheoughtoroughtnottodo.
Thesolutiontononprogrammeddecisionmakingreliesonprocedures,rules,andpolicies.
Mostmanagerialdecisionsintherealworldarefullynonprogrammed.
Theidealsituationformakingdecisionsislowrisk.
Riskistheconditioninwhichthedecisionmakerisabletoestimatethelikelihoodofcertainoutcomes.
Riskisasituationinwhichadecisionmakerhasneithercertaintynorreasonableprobabilityestimates.
Peoplewhohavealowtoleranceforambiguityandarerationalintheirwayofthinkingaresaidtohaveadirectivestyle.
Decisionmakerswithananalyticstylehaveamuchlowertoleranceforambiguitythandodirectivetypes.
Individualswithaconceptualstyletendtobeverybroadintheiroutlookandwilllookatmanyalternatives.
Behavioral-styledecisionmakersworkwellwithothers.
Mostmanagershavecharacteristicsofanalyticdecisionmakers.
Accordingtotheboxedfeature,“ManagingWorkforceDiversity,”diverseemployeestendtomakedecisionsfasterthanahomogeneousgroupofemployees.
Theanchoringeffectdescribeswhendecisionmakersfixateoninitialinformationasastartingpointandthen,onceset,theyfailtoadequatelyadjustforsubsequentinformation.
Theavailabilitybiasdescribeswhendecisionmakerstrytocreatemeaningoutofrandomevents.
Thesunkcosterroriswhendecisionmakersforgetthatcurrentchoicescannotcorrectthepast.
DECISIONMAKINGFORTODAY’SWORLD
Today’sbusinessworldrevolvesaroundmakingdecisions,usuallywithcompleteoradequateinformation,andunderminimaltimepressure.
Managersneedtounderstandculturaldifferencestomakeeffectivedecisionsintoday’sfast-movingworld.
Accordingtotheboxedfeature,“FocusonLeadership,”whenidentifyingproblems,managersmightbefromaculturethatisfocusedonproblemsolving,ortheirculturemightbeoneofsituationacceptance.
Accordingtotheboxedfeature,“FocusonLeadership,”findingsfromstudiesbyGeertHofstedeandfromGLOBEresearchersshowthatinhighuncertaintyavoidancecountries,decisionmakingtendstobebasedmoreonintuitionthanonformalanalysis.
Highlyreliableorganizations(HROs)areeasilytrickedbytheirsuccess.
Multiple-ChoiceQuestions
Foreachofthefollowingchoosetheanswerthatmostcompletelyanswersthequestion.
THEDECISION-MAKINGPROCESS
Decisionmakingistypicallydescribedas________________,whichisaviewthatistoosimplistic.
decidingwhatiscorrect
puttingpreferencesonpaper
choosingamongalternatives
processinginformationtocompletion
Aseriesofeightstepsthatbeginswithidentifyingaproblemandconcludeswithevaluatingthedecision’seffectivenessisthe________________.
decision-makingprocess
managerialprocess
maximinstyle
boundedrationalityapproach
________________istheexistenceofadiscrepancybetweenanexistingandadesiredstateofaffairs.
Anopportunity
Asolution
Aweakness
Aproblem
Inidentifyingtheproblem,amanager_________________.
comparesthecurrentstateofaffairswithwheretheywouldliketobe
expectsproblemstobedefinedbyneonlights
looksfordiscrepanciesthatcanbepostponed
willnotactwhenthereispressuretomakeadecision
Whichofthefollowingstatementsistrueconcerningproblemidentification?
Problemsaregenerallyobvious.
Asymptomandaproblemarebasicallythesame.
Well-trainedmanagersgenerallyagreeonwhatisconsideredaproblem.
Theproblemmustbesuchthatitexertssometypeofpressureonthemanagertoact.
Whatisthesecondstepinthedecision-makingprocess?
identifyingdecisioncriteria
allocatingweightstothecriteria
analyzingalternatives
identifyingaproblem
Todeterminethe_____________,amanagermustdeterminewhatisrelevantorimportanttoresolvingtheproblem.
geocentricbehaviorneeded
numberofallowablealternatives
weightingofdecisioncriteria
decisioncriteria
Whatisthethirdstepinthedecision-makingprocess?
allocatingweightstothecriteria
analyzingthealternatives
selectingthebestalternative
implementingthealternative
Ifallcriteriainthedecisionmakingareequal,weightingthecriteria______________.
improvesdecisionmakingwhenlargenumbersofcriteriaareinvolved
isnotneeded
producesexcellentdecisions
improvesthecriteria
Inallocatingweightstothedecisioncriteria,whichofthefollowingishelpfultoremember?
Allweightsmustbethesame.
Thetotaloftheweightsshouldsumto1.0.
Everyfactorcriterionconsidered,regardlessofitsimportance,mustreceivesomeweighting.
Assignthemostimportantcriterionascore,andthenassignweightsagainstthatstandard.
Whatisthestepwhereadecisionmakerwantstobecreativeincomingupwithpossiblealternative?
allocatingweightstothecriteria
analyzingalternatives
developingalternatives
identifyingdecisioncriteria
Whenanalyzingalternatives,whatbecomesevident?
thestrengthsandweaknessesofeachalternative
theweightingofalternatives
thelistofalternatives
theproblem
Whendevelopingalternativesinthedecision-makingprocess,whatmustamanagerdo?
listalternatives
evaluatealternatives
weightalternatives
implementalternatives
Selectinganalternativeinthedecision-makingprocessisaccomplishedby__________________.
choosingthealternativewiththehighestscore
choosingtheoneyoulikebest
selectingthealternativethathasthelowestprice
selectingthealternativethatisthemostreliable
InStep6ofthedecision-makingprocess,eachalternativeisevaluatedbyappraisingitagainstthe_____________.
subjectivegoalsofthedecisionmaker
criteria
assessedvalues
implementationstrategy
______________includesconveyingadecisiontothoseaffectedandgettingtheircommitmenttoit.
Selectinganalternative
Evaluatingthedecisioneffectiveness
Implementingthealternatives
Analyzingalternatives
Whichofthefollowingisimportantineffectivelyimplementingthechosenalternativeinthedecision-makingprocess?
gettingupper-managementsupport
double-checkingyouranalysisforpotentialerrors
allowingthoseimpactedbytheoutcometoparticipateintheprocess
ignoringcriticismconcerningyourchosenalternative
Thefinalstepinthedecision-makingprocessisto_______________.
pickthecriteriaforthenextdecision
reevaluatetheweightingsofthecriteriauntiltheyindicatethecorrectoutcome
evaluatetheoutcomeofthedecision
reassigntheratingsonthecriteriatofinddifferentoutcomes
Whichofthefollowingisimportanttorememberinevaluatingtheeffectivenessofthedecision-makingprocess?
Youshouldignorecriticismconcerningthedecision-makingprocess.
Youmayhavetostartthewholedecisionprocessover.
Youwillhavetorestartthedecision-makingprocessifthedecisionislessthan50percenteffective.
Ninetypercentofproblemswithdecisionmakingoccurintheimplementationstep.
THEMANAGERASDECISIONMAKER
Managersareassumedtobe______________;theymakeconsistent,value-maximizingchoiceswithinspecifiedconstraints.
rational
leaders
organized
satisficers
Itisassumedthataperfectlyrationaldecisionmaker______________.
doesnotfollowrationalassumptions
doesnotconsidervaluemaximizingasanobjective
offersinconsistentdecisions
wouldbeobjectiveandlogical
Managerscanmakerationaldecisionsif_________________.
theproblemisambiguous
thegoalsareunclear
thealternativesarelimited
timeconstraintsexist
Whichofthefollowingisnotavalidassumptionaboutrationality?
Theproblemisclearandunambiguous.
Asingle,well-definedgoalistobeachieved.
Preferencesareclear.
Preferencesareconstantlychanging.
Whenmanagerscircumventtherationaldecision-makingmodelandfindwaystosatisfice,theyarefollowingtheconceptof_________________.
jurisprudence
boundedrationality
least-squaredexemptions
self-motivateddecisions
Becausemanagerscan’tpossiblyanalyzeallinformationonallalternatives,managers______________,ratherthan______________.
maximize;satisfice
maximize;minimize
satisfice;minimize
satisfice;maximize
Thetypeofdecisionmakinginwhichthesolutionisconsidered“goodenough”isknownas_________________.
intuition
satisfying
maximizing
satisficing
Whenadecisionmakerchoosesanalternativeunderperfectrationality,she______________herdecision,whereasunderboundedrationalityshechoosesa______________decision.
minimizes;satisficing
satisfices;maximizing
maximizes;satisficing
maximizes;minimizing
Anincreasedcommitmenttoapreviousdecisiondespiteevidencethatitmayhavebeenwrongisreferredtoas_______________.
economiesofcommitment
escalationofcommitment
dimensionalcommitment
expansionofcommitment
Intuitivedecisionmakingis_______________.
notutilizedinorganizations
aconsciousprocessbasedonaccumulatedjudgment
makingdecisionsbasedonexperience,feelings,andaccumulatedjudgment
importantinsupportingescalationofcommitment
Instudyingintuitivedecisionmaking,researchershavefoundthat__________________.
managersdonotmakedecisionsbasedonfeelingsoremotions
managersusedatafromtheirsubconsciousmindtohelpmaketheirdecisions
rationalthinkingalwaysworksbetterthanintuitive
accumulatedexperiencedoesnotsupportintuitivedecisions
Allofthefollowingareaspectsofintuitionexcept__________________.
experienced-baseddecisions
affect-initiateddecisions
cognitive-baseddecisions
programmeddecisions
_____________arestraightforward,familiar,andeasilydefined.
Unstructuredproblems
Structuredproblems
Uniqueproblems
Nonprogrammedproblems
Structuredproblemsalignwellwithwhichtypeofdecisionmaking?
programmed
satisficing
intuition
gutfeeling
______________decisionmakingisrelativelysimpleandtendstorelyheavilyonprevioussolutions.
Nonprogrammed
Linear
Satisficing
Programmed
Aprocedure_______________.
isanexplicitstatementdetailingexactlyhowtodealwithadecision
isaseriesofinterrelatedsequentialstepstorespondtoastructuredproblem
isasetofguidelinesthatchannelamanager’sthinkingindealingwithaproblem
allowsamanagertousebroaddecision-makingauthority
A______________isanexplicitstatementthattellsamanagerwhatheorshecanorcannotdo.
procedure
policy
rule
solution
Apolicy____________.
typicallycontainsanambiguousterm
isusedfrequentlywhenamanagerfacesastructuredproblem
allowslittlediscretiononthepartofthemanager
offersstrictrulesastohowaproblemshouldbesolved
Whatisadifferencebetweenapolicyandarule?
Apolicyestablishesparameters.
Aruleestablishesparameters.
Apolicyismoreexplicit.
Aruleismoreambiguous.
A______________typicallycontainsanambiguoustermthatleavesinterpretationuptothedecisionmaker.
system
rule
solution
policy
Abusinessschool’sstatementthatit“strivesforproductiverelationshipswithlocalorganizations”isanexampleofa________________.
rule
policy
procedure
commitment
Unstructuredproblems_____________.
areeasilysolved
presentfamiliarcircumstances
forcemanagerstodealwithincompleteorambiguousinformation
areroutine
Nonprogrammeddecisionsarebestdescribedas________________.
recurring,butdifficulttomake
verysimilartoproblemsinotherareasoftheorganization
requiringmoreaggressiveactiononthedecisionmaker’sthoughtprocesses
uniqueandnonrecurring
Whenproblemsare______________,managersmustrelyon______________inordertodevelopuniquesolutions.
structured;nonprogrammeddecisionmaking
structured;pureintuition
unstructured;nonprogrammeddecisionmaking
unstructured;programmeddecisionmaking
Lower-levelmanagerstypicallyconfrontwhattypeofdecisionmaking?
unique
nonroutine
programmed
nonprogrammed
Whichofthefollowingislikelytomakethemostprogrammeddecisions?
theCEOofPepsiCo.
thevicepresidentofGeneralMotorsCadillacDivision.
theheadoftheMinuteMaidDivisionatCoca-Cola.
themanagerofthelocalMcDonald’s.
______________isasituationinwhichamanagercanmakeaccuratedecisionsbecausetheoutcomeofeveryalternativeisknown.
Certainty
Risk
Uncertainty
Maximax
Maximin
Ifanindividualknowsthepriceofthreesimilarcarsatdifferentdealerships,heorsheisoperatingunderwhattypeofdecision-makingcondition?
risk
uncertainty
certainty
factual
Aretailclothingstoremanagerwhoestimateshowmuchtoorderforthecurrentspringseasonbasedonlastspring’soutcomesisoperatingunderwhatkindofdecision-makingcondition?
seasonal
risk
uncertainty
certainty
______________isasituationinwhichadecisionmakerhasneithercertaintynorreasonableprobabilityestimatesavailable.
Certainty
Risk
Uncertainty
Maximax
Nonprogrammeddecisionsaretypicallymadeunderaconditionof________________.
certainty
lowlevelsofrisk
uncertainty
reliability
Apersonatahorseracetrackwhobetsallofhisorhermoneyontheodds-basedlongshotto“win”(ratherthan“place”or“show”)ismakingwhatkindofchoice?
maximax
maximin
minimax
minimin
Whatbestdescribesthepsychologicalorientationofanindividualmakinga“maximax”choice?
optimist
realist
pessimist
satisficer
Optimisticmanagerscouldbeexpectedtoutilizetheirmaximaxorientationwhenthey_______________.
maximizethemaximumpayoff
maximizetheminimumpayoff
minimizethemaximumregret
minimizetheminimumregret
Whatisthepsychologicalorientationofadecisionmakerwhomakesa“maximin”choice?
optimist
realist
pessimist
satisficer
Whichofthefollowingbestdescribes“maximizingtheminimumpossiblepayoff”?
maximax
maximin
minimax
minimin
Amanagerwhodesirestominimizehisorhermaximim“regret”willoptfora______________choice.
maximax
maximin
minimax
minimin
Decisionmakersusingwhatdecision-makingstylemakefastdecisionsandfocusontheshortrun?
directive
behavioral
analytic
conceptual
Whattypesarecharacterizedascarefuldecisionmakerswiththeabilitytoadaptorcopewithuniquesituations?
directivedecisionmakers
behavioraldecisionmakers
analyticdecisionmakers
conceptualdecisionmakers
Whoareconcernedabouttheachievementsofthosearoundthemandarereceptivetosuggestionsfromothers?
directivedecisionmakers
behavioraldecisionmakers
analyticdecisionmakers
conceptualdecisionmakers
Manymanagersuse__________orrulesofthumbtosimplifytheirdecisionmaking.
heuristics
biases
errors
habits
Whendecisionmakerstendtothinktheyknowmorethantheydoorholdunrealisticallypositiveviewsofthemselvesandtheirperformance,theyareexhibiting_______________.
self-servingbias
theanchoringeffect
immediategratificationbias
overconfidencebias
Whendecisionmakersseekoutinformationthatreaffirmstheirpastchoicesanddiscountinformationthatcontradictspastjudgments,theyareexhibiting_______________.
availabilitybias
theanchoringeffect
self-servingbias
confirmationbias
Whendecisionmakersassessthelikelihoodofaneventbasedonhowcloselyitresemblesothereventsorsetsofevents,theyareusing_______________.
availabilitybias
framingbias
selectiveperceptionbias
representationbias
Whatisthetendencyfordecisionmakerstofalselybelievethattheywouldhaveaccuratelypredictedtheoutcomeofaneventoncethatoutcomeisactuallyknown?
thehindsightbias
thesunkcostserror
therandomnessbias
theselectiveperceptionbias
DECISIONMAKINGFORTODAY’SWORLD
Accordingtotheboxedfeature,“FocusonLeadership,”when_______________,managersmightcomefromaculturethatgathersfactsorfromaculturethatismoreintuitiveingatheringideasandpossibilities.
developingalternatives
implementingalternatives
searchingforinformation
identifyingproblems
Tomakeeffectivedecisionsintoday’sfast-movingworld,managersneedto_______________.
usethefive-stagedecision-makingprocess
knowwhenitistimetocallitquits
ignoreculturaldifferences
identifytheirstyleofdecisionmaking
Whatisacharacteristicthattheexpertssayaneffectivedecision-makingprocesshas?
Itisinconsistent.
Itacknowledgesonlyobjectivethinking.
Itfocusesonallfactors—eventhosethatdonotseemimportant.
Itrequiresonlyasmuchinformationandanalysisasisnecessary.
WhattermisusedbyNavyaviatorstodescribeagutfeelingthatsomethingisn’tright?
leemers
thecreeps
uneasiness
regret
Managersofhighlyreliableorganizations(HROs)gettheinputof_______________andletthemmakedecisions.
CEOs
frontlineworkers
customers
suppliers
Whenhighlyreliableorganizations(HROs)facecomplexity,they_______________.
trytosimplifydata
aimfordeeperunderstandingofthesituation
defertotheexperts
act,thenthink
SCENariosandQuestions
Foreachofthefollowingchoosetheanswerthatmostcompletelyanswersthequestion.
THEDECISION-MAKINGPROCESS
Decisions,Decisions(Scenario)
Sondraneededhelp.Herinsurancecompany’srapidgrowthwasnecessitatingmakingsomechanges,butwhatchanges?Shouldtheyaddtotheexistinginformationsystemorshouldtheybuyanewsystem?Shewasgiventheresponsibilityofanalyzingthecompany’spresentinformationsystemanddecidingwhatthecompanyshoulddothatwouldgivethemplentyofroom.Shewasconfusedandneededhelpinmakingthecorrectdecision.
Accordingtothedecision-makingprocess,thefirststepSondrashouldtakeisto_____________.
analyzealternativesolutions
identifydecisioncriteria
evaluateherdecision’seffectiveness
identifytheproblem
Accordingtothedecision-makingprocess,thesecondstepSondrashouldtakeisto____________.
analyzealternativesolutions
identifydecisioncriteria
evaluateherdecision’seffectiveness
allocateweightstothecriteria
Allocatingweightstothecriteriaisthestepinthedecision-makingprocessthatoccursbetweenidentifyingthedecisioncriteriaand______________.
developingthealternatives
selectingalternatives
implementingthealternative
identifyingtheproblem
WhenSondraisconveyingherdecisiontothoseaffectedandgettingtheircommitmenttoit,sheisperformingwhichstepinthedecision-makingprocess?
analyzingalternativesolutions
selectingalternatives
implementingthealternative
identifyingtheproblem
TheverylaststepSondrashouldtake,accordingtothedecision-makingprocess,isto__________.
analyzealternativesolutions
selectalternatives
implementthealternative
evaluatethedecision’seffectiveness
TheCar(Scenario)
Colleenisastudent,andherolderbrotherhasloanedheranoldcar.Thecarisinneedofseveralrepairsbeforeshewillfeelcomfortabledrivingit.
Colleenneedsavehicle,butshehastodecideifthevehicleisworthrepairing.Sheisfacinga(n)_____________,adiscrepancybetweenanexistingandadesiredstateofaffairs.
alternative
weightedproblemset
problem
certaintyavoidancesituation
Intalkingwithanautomotiverepairperson,Colleenneedstoprioritizetherepairs.Herfirstconcernissafetyofthevehicle.Thisstepinthedecision-makingprocessiscalled__________________.
weightingthedecisioncriteria
analyzingofalternatives
identifyingdecisioncriteria
selectinganalternative
THEMANAGERASDECISIONMAKER
TheCar(Scenario)
Colleenisastudent,andherolderbrotherhasloanedheranoldcar.Thecarisinneedofseveralrepairsbeforeshewillfeelcomfortabledrivingit.
Colleendecidestohavealloftheproblemsfixedonthecar.Sheassumesthattherepairpersonhasfoundalltheproblemsandthattherewillbenoproblemcorrectingtheimperfectionswithinaspecifiedbudget.Thisisanexampleofa__________decision.
parochial
irrational
ethical
rational
Colleen’sbrotherhasadifferentviewoftherepairs.Heassumesthattherepairpersonisusingthebestinformationavailable,buttheremaybeotherunexpectedrepairsthatmightsurfaceandthatahigherbudgetmightbemorereasonable.Heisusing______________.
rationaldecisionmaking
riskavoidance
boundedrationality
Stage4decisionmaking
Colleen’sbrotherfeelsthecarisworthrepairingbecausehehasownedseveralcarsmadebythesamemanufacturerasthiscar,andhehasdriventhiscarforseveralyears.Heisusing_________todeterminethatthecarhasvaluedespiteitsneedofrepair.
intuitivedecisionmaking
selectivecoordinationofthoughtprocesses
sunkcosts
returnoninvestment
TheFirstJob(Scenario)
Upongraduation,yousearchforajobwiththeuniversity’sjobplacementcenter.Althoughyouhavestudiedandpreparedtoworkinanadvertisingagency,thefirstjobthatyouareofferedisasupervisorinamanufacturingcompanyworkingtheafternoonshiftfrom3:00P.M.until11:00P.M.
IfyouhadmadealargersearchusingtheInternetandotheremploymentsearchprocesses,youmighthavebeenabletofindmoreemploymentopportunities.Thiswouldhavebeenamore_________decision-makingprocess.
nonprogrammable
uncertain
risky
perfectlyrational
Underboundedrationality,youwouldbeexpectedtosearchforajobby________________.
lookingatalltheopportunitiesthatcanbeanalyzedinthetimeavailable
lookingatalltheopportunitiesavailable
looking“outsidethebox”inyoursearch
analyzingalltheopportunitiesuntilyoufindtheperfectjob
Ifyouuseashortenedprocessofsearchingforajob,itislikelythatyou___________ratherthanmaximizedinyourdecisionprocess.
minimized
rationalized
satisficed
agreed
Duringyourjobsearch,youdependon__________decisionmakingbymakingyourdecisionbasedonaccumulatedjudgmentandexperience.
experiential
legal
intuitive
formidable
IsthePictureClear?(Scenario)
Sharonwastheregionalmanagerofalargecabletelevisioncompany.Shefacedmanyproblemsanddecisionsdaily,suchashowtopriceeachmarket,whotohire,whatkindoftechnologysheshouldpurchase,andhowsheshouldhandletheincreasingcustomercomplaints.Sheneededsomehelpsortingtheseissuesout.
Whenacustomercallsandrequestsarefundforapartialmonth’susageofcable,thefactthatsuchsituationsareroutineandmostlikelyhaveastandardresponsewouldmaketheresponsea______________decision.
standard
routine
policy
programmed
SometimesSharonfollowsa______________,aseriesofinterrelatedsequentialstepsforrespondingtoastructuredproblem.
rule
policy
procedure
suggestion
SometimesSharoninstructsherlocalmanagerstofollow______________whenconfrontedwithproblemsituations.Theseestablishparametersforthemanagermakingthedecisionratherthanspecificallystatingwhatshouldorshouldnotbedone.
rules
procedures
policies
orders
Unfortunately,Sharonalsofacesissuescontaininginformationthatisambiguousorincomplete,suchaswhatkindoftechnologytopurchase.Theseareknownas______________problems.
unstructured
variable
random
hit-and-miss
ManagingYourCareer(Scenario)
Michellehasanewjobandislearningtoperformthetasksassignedtoher.Differentsituationsdemanddifferentdecision-makingprocesses.
Michellefindsasituationthatinstructsherinspecific,interrelated,sequentialstepstorespondtoaproblem.Thisisreferredtoasa_____________.
rule
policy
broadguideline
procedure
Michellefindsacompanydirectivethatspecificallyrestrictsherfromtakingcertainactions.Thisisa_____________.
rule
policy
broadguideline
procedure
Asshelearnsthegeneralguidelinesofthejob,Michelleisgivenmoredecision-makingauthority.Theguidelinesestablishparametersfordecisionmakingandarereferredasa_____________.
rule
policy
broadguideline
procedure
Michelleeventuallyfindsaproblemthathasnocut-and-drysolution.Theproblemisuniqueandwillneveroccuragain.Thisproblemisreferredtoas_____________.
flexible
programmed
adaptable
nonprogrammed
Decision-MakingConditions(Scenario)
SandyJoisthemanagerforTrucksRUs,amedium-sizedhaulingservicelocatedintheSoutheast.Sheisresponsibleforschedulingtrucks,initiatingnewroutes,andstaffingbothexistingandnewroutes.Sheiscurrentlystrugglingwithexistinginformationabouttheprofitabilityofexistingandfuturetruckroutes.
SandyJocanmakeaccuratedecisionsifsheiswillingtopay$5,000forresearchabouttheprofitabilityofvarioustruckroutes.Ifshepaysfortheresearch,shebelievesthatsheisoperatingunderaconditionof____________.
certainty
risk
uncertainty
maximax
Joe,SandyJo’sbestdriver,tellsherthathebelieveshecanestimatethatthereisa75percentprobabilitythattheycangetthebusinessofPorkBrothers,Inc.,iftheyinitiateatruckroutethroughruralNorthCarolina.Joeisoperatingunderaconditionof______________.
certainty
risk
uncertainty
maximax
SandyJoknowsthatsheisoperatinginanuncertainenvironment.Sheisbasicallyanoptimist,andwewould,therefore,expecthertofollowa______________strategy.
certainty
risk
uncertainty
maximax
SandyJoknowsthatsheisoperatinginanuncertainenvironment.Sheisbasicallyapessimist,andwewould,therefore,expecthertofollowa______________strategy.
certainty
risk
minimax
maximin
SandyJowishestominimizeherre
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