Question

decision making
1 define decision making
2 analyze the steps in decision making
3 explain ways decision making is necessary in business
4 differentiate between programmed and non programmed decision
5 identify the level of management and type of decision at each level made
6 describe person and group involved in the decision making process
7 apply decision-making process in actual decision situation

Explanation:

1. Define decision making: A cognitive process of selecting a course of action from alternative options to achieve a goal.
2. Analyze the steps in decision making: Standard steps include identifying the problem, gathering information, evaluating alternatives, choosing an alternative, implementing it, and reviewing outcomes.
3. Explain ways decision making is necessary in business: Guides resource allocation, mitigates risks, capitalizes on opportunities, aligns actions with organizational goals, and supports adaptability to market changes.
4. Differentiate between Programmed and non-programmed decision: Programmed decisions are routine, repetitive, guided by rules/policies (e.g., restocking inventory). Non-programmed decisions are unstructured, novel, require creative problem-solving (e.g., launching a new product line).
5. Identify the level of management and type of decision at each level made:

• Top management: Non-programmed, strategic decisions (e.g., long-term business expansion).
• Middle management: Semi-programmed, tactical decisions (e.g., departmental budget adjustments).
• Lower management: Programmed, operational decisions (e.g., scheduling daily staff shifts).

1. Describe Person and group involved in the decision making Process:

• Individuals: Managers or employees making routine, small-scale decisions independently.
• Groups: Cross-functional teams, executive boards, or committees making complex, high-impact decisions that benefit from diverse input.

1. Apply Decision-making Process in actual decision situation: For example, addressing declining sales:
2. Identify problem: Falling monthly sales by 15%.
3. Gather info: Analyze sales data, customer feedback, competitor actions.
4. Evaluate alternatives: Launch a promotion, improve product features, adjust pricing.
5. Choose alternative: Launch a limited-time discount promotion.
6. Implement: Roll out the promotion across sales channels.
7. Review: Track sales post-promotion to measure effectiveness.

Answer:

1. Decision making is the cognitive process of selecting a preferred course of action from available alternatives to meet a specific objective.
2. The core steps are: Identify the problem, gather relevant information, generate and evaluate alternatives, select the best alternative, implement the choice, and review the results.
3. Decision making is critical in business to allocate resources efficiently, manage risks, seize market opportunities, align operations with organizational goals, and adapt to changing market conditions.
4. Programmed decisions are routine, rule-based responses to recurring problems (e.g., approving standard expense reports). Non-programmed decisions are unstructured, creative solutions to unique, complex problems (e.g., responding to a sudden market disruption).
5. - Top management: Strategic, non-programmed decisions (e.g., merging with another company)

• Middle management: Tactical, semi-programmed decisions (e.g., hiring a department head)
• Lower management: Operational, programmed decisions (e.g., approving employee time-off requests)

1. - Individuals: Employees/Managers making independent, small-scale or routine decisions (e.g., a retail associate choosing to restock a shelf)

• Groups: Teams, committees, or executive boards making collaborative, high-stakes decisions (e.g., a leadership team deciding on a company rebranding)

1. Example application (addressing low employee productivity):
2. Problem: 20% drop in team task completion rates
3. Gather data: Survey employees, review workload logs, analyze workflow bottlenecks
4. Alternatives: Offer training, adjust workloads, implement incentive programs
5. Choose: Implement a performance-based bonus program
6. Implement: Communicate the program, set clear metrics, launch it company-wide
7. Review: Measure task completion rates 3 months post-implementation to assess improvement