MGT 3200 : Test 2 Questions
Document Summary
Exam two objectives (from the notes & outside reading) Is decision-making a function of management: decision-making techniques are applicable and valuable to all management functions, why do we make decisions as managers, decisions are means to an end rather than ends in themselves. Programmed decisions- are specific procedures that have been developed for repetitive and routine problems. Decisions are programmed; a specific procedure has been developed: nonprogrammed decisions- are specific to management problems that are novel and unique. Programmed: what is decision-making under conditions of certainty, manager knows all the available alternatives and the outcomes associated with each. The manager has perfect knowledge about all alternatives and their outcomes. Certainty is an ideal situation for managerial decision-making. Under certainty, a manager simply picks the alternative with the best outcome: managerial decisions are seldom made under conditions of certainty, what is decision-making under conditions of risk, decisions under risk are most common.
