MANAGEMENT $3200$

EXAM TWO OBJECTIVES $($FROM THE NOTES & OUTSIDE READING$)$

DECISION$-$MAKING

Is decision$-$making a function of management?

Decision$-$making is a key activity at all levels of management.

$2.$ Why do we make d$$fcisions as managers?

$3.$ What's the difference between programmed and non$-$programmed decisions?

Programmed decisions are specific procedures that have been developed for repetitive and routine problems. Nonprogrammed decisions are specific to management problems that are novel and unique. They are complex and unstructured

$4.$ Do managers make more programmed or non$-$programmed decisions, in general?

The management of most organizations faces great numbers of programmed decisions.

$5.$ What is decision$-$making under conditions of certainty?

When a decision is made under conditions of certainty the managers knows all the available alternatives and the outcomes associated with each.

$6.$ What is decision$-$making under conditions of risk?

This condition involves a lack of complete certainty regarding the outcomes of various alternatives, but an awareness of the probabilities associated with their occurrence.

$7.$ What is decision$-$making under conditions of uncertainty?

When decisions are made under conditions of uncertainty managers don't know alternatives, their potential outcomes, or the probability of the outcomes occurrence

$8.$ Which decision$-$making condition is most common? Least common? Most difficult?