CHAPTER 2
10. Explain how good decision making is a skill that can be learned and improved.
First, decision making is a process, which has 8 steps. By following these 8 steps, we can figure out the
most suitable solution to our problem. It is about learning how to make decisions.
In terms of improving, as long as we practice making decisions precisely, smartly on a regular basis, we
can enhance it. The last step of decision making is evaluating decision effectiveness, which involves
evaluating the outcome or result of the decision to see whether the problem was resolved. If the
evaluation shows that the problem still exists, then the manager needs to assess what went wrong. Was
the problem incorrectly defined? Were errors made when evaluating alternatives? Was the right
alternative selected but poorly implemented? Answering those questions helps you make a better
decision next time. From time to time, decision biases and errors may disappear, and become more
bounded rational, or even rationa
11. Where in the eight-step decision-making process are the likely problem areas
for managers?
The first step: Identifying a problem is likely the problem for most managers. Because in the real world,
most problems don’t come and say: “Hey, I’m the problem”. Managers also have to be cautious not to
confuse problems with symptoms of the problem. Also, problem identification is subjective. What one
manager considers a problem might not be considered a problem by another manager. In addition, a
manager who resolves the wrong problem perfectly is likely to perform just as poorly as the manager
who doesn’t even recognize a problem and does nothing.
12. What role does intuition play in decision making? Discuss.
Intuition plays an essential role for decision-making in rapidly changing environments; if there are
contradictions in the data; ambiguity due to lack of data; or decisions that center on people (hiring,
firing, or political decisions). Ironically, the fact is that for some decisions, data alone isn‘t enough.
13. Is satisficing a desirable way of making managerial decisions?
Satisficing is a decision-making strategy that aims for a satisfactory or adequate result, rather than the
optimal solution
It is a desirable way in most situations due to scarcity of resources, but not the most desirable way in
decision making, which is maximizing. In reality, it is rare for managers to make decisions rationally,
because they have limited ability to process information, like limited time, money, or emotional energy.
That is, we accept solutions that are “good enough”. Although it is not completely desirable, it is natural.
14. Most managers adopt particular styles to simplify their decision making. This helps them make
sense of information. Are these styles unreliable?
Two style: linear and non-linear
•Linear Thinking Style – a person’s tendency to use external data/facts; the habit of processing
information through rational, logical thinking.
•Nonlinear Thinking Style – a person’s preference for internal sources of information; a method of
processing this information with internal insights, feelings, and hunches.
The adoption of a style in situations depends on the situations at hand. This would mean that there
should be a flexible approach to each situation.
15. What should a good manager do if it becomes apparent that a decision that has already been made
is clearly not working or solving the situation?
A good manager should always look for all possible ways to correct the alternative which might not be
working correctly or might not be meeting the expectations.
Managers should focus on process and not outcome: most of the managers in an organization focus on
a result but instead don’t focus on an ongoing decision-making process. It is essential to understand the
procedure followed but not an outcome so as not to face the same problem that had already occurred.
When a decision made is not working or solving the situation, managers should reconsider their decision-
making process, from step 1 to step 8 and answer the question: Was the problem incorrectly defined?
Were errors made when evaluating alternatives? Was the right alternative selected but poorly
implemented?
Also, take account of the biases. During the decision making process, whether the manager has any
bias. Understanding that helps him or her get rid of and make a better decision.
16. What do you understand by personalization technologies? How does big data fit
into decision-making processes?
With this type of data at hand, decision makers have very powerful tools to help them make decisions.
