Management and decision making.

Created by: hamishc
Created on: 01-05-16 18:30

What is scientific decision making?

Decisions based on data.

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Advantages/ disadvantages of scientific decision making?

Reduces risk of making expensive mistakes as it is logical and structured. However, it can be costly and time-consuming as it involves collecting and analysing allot of data, you also need to make sure data used is reliable and up to date.

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What is the decision making process?

Set objectives, collect data, analyse data, make decision, implement decision, review decision.

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What is intuitive decision making?

Decisions based on gut instinct and past experience

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Advantages/ disadvantages of intuitive decision making?

Can be made quickly, easier to make decisions in new or unfamiliar situations, however people can make mistakes as decisions can be irrational or illogical.

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How does risk, reward and uncertainty affect decisions.

Risk (businesses must take risk, some risks are high reward, scientific decisions reduce risk), reward (decisions are made to gain rewards, can be financial or in other ways: productivity), uncertainty (all decisions have uncertainty).

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What is opportunity cost?

The benefit given up in order to do something else.

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How does opportunity cost affect decision making?

Businesses must choose where to spend their limited resources. Businesses must compare opportunity cost when making decisions.

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What other factors do business's consider when making decisions?

The business's mission/ main purpose, business objectives, ethics, external environment, recourse constraints.

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Other cards in this set

Card 2

Front

Advantages/ disadvantages of scientific decision making?

Back

Card 3

Front

What is the decision making process?

Back

Card 4

Front

What is intuitive decision making?

Back

Card 5

Front

Advantages/ disadvantages of intuitive decision making?

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Management and decision making.