Exam 9: Managerial Decision Making

All of the following are characteristics of the classical decision making model except:

In the real world, few decisions are certain.

The growth of quantitative decision techniques that use computers has reduced the use of the classical approach.

The most effective managers are consistent in using their own decision style rather than shifting among styles.

Explain the four underlying assumptions of the administrative model.

Briefly describe the assumptions underlying the classical model of decision making.

The _____ model of decision-making is useful for making nonprogrammed decisions when conditions are uncertain, information is limited, and there are managerial conflicts about what goals to pursue or what course of action to take.

Good examples of _____ decisions are strategic decisions.

In the implementation stage, decision makers gather information that tells them how well the decision was implemented and whether it was effective in achieving its goals.

Most bad decisions are errors in judgment that originate in the human mind's limited capacity and in the natural biases of the manager.

The approach that managers use to make decisions usually falls into one of three types - the classical model, the administrative model, and the political model.

Administrative and political decision making procedures and intuition have been associated with high performance in unstable environments in which decisions must be made rapidly and under more difficult conditions.

Nordstrom Department store's "No questions asked - Return's Policy" is an example of a(n):