Leadership and Decision Making 0.0 / 5 ? Business StudiesUnderstanding Management Decision MakingASAQA Created by: RachelCoates16Created on: 06-11-17 17:43 Influence on management style Nature of the tasks involved 1 of 16 Paternalistic leader Produce or Perish and Country Club 2 of 16 Scientific Decision Making Uses a systematic process for making decisions in an objective manner 3 of 16 Analyse Data Decision tree could be used 4 of 16 Gather Data Using primary or secondary research 5 of 16 Benefit of scientific decision making Based on logic, involving comparisons between alternative approaches 6 of 16 Intuition The ability to understand something with the need for conscious reasoning 7 of 16 Benefit of using intuition Good approach when the manager has a detailed understanding of the market 8 of 16 Disadvantage of scientific decision making Can be time consuming and costly to gather the necessary data 9 of 16 Opportunity Cost The next best alternative foregone 10 of 16 Decisions are usually taken in the expectation of what? Rewards 11 of 16 Decision Trees Model of the various options available in a decision, including probability of consequences 12 of 16 Expected Value (EV) The monetary value of an outcome of a decision 13 of 16 Net Gain The value to be gained from making a particular decision 14 of 16 Benefit of using decision trees Takes into account uncertainty and risk 15 of 16 Limitation of decision trees Less useful when circumstances are very uncertain or changing rapidly 16 of 16
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