Chapter 5 Part 3 Flashcards Preview

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Flashcards in Chapter 5 Part 3 Deck (10)
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1

Cover unique, one-time-only events

Single-use plans

2

Used repeatedly to handle frequently recurring events

Types - Policies, procedures, and rules and regulations

Standing plans

3

Managers decide how to allocate available money to best accomplish company goals

Budgeting

4

Process of choosing a solution from available alternatives

Decision making

5

Systematic process of defining problems, evaluating alternatives, and choosing optimal solutions

Rational decision making

6

1. Defining the problem
Managers must:
Be aware of the problem
Be motivated to solve the problem
Have the knowledge, skills, abilities, and resources to fix the problem
2. Identifying decision criteria
3. Weighing the criteria
Absolute comparisons
Relative comparisons
4. Generating alternative courses of action
5. Evaluating each alternative against each criterion systematically
6. Computing the optimal decision

Steps in Rational Decision Making

7

Standards used to guide judgments and decisions

Decision criteria

8

Each decision criterion is compared to a standard or ranked on its own merits

Absolute comparisons

9

Each decision criterion is compared directly with every other criterion

Relative comparisons

10

Involves multiplying the rating for each criterion by the weight for that criterion and then summing the generated scores

Computing the optimal decision