MGT 3200 : Exam 2 Study Guide
Document Summary
To accomplish goals efficiently, most closely associated with planning. Why do we make decisions as managers: no, it"s a part of all functions. Do managers make more programmed or non-programmed decisions in general: programmed decisions make us more efficient. What is decision-making under conditions of certainty: managers know all available alternatives and the outcomes associated with each; 100% probability. What is decision-making under conditions of risk: lack of certainty regarding outcomes of various alternatives, but an awareness of probabilities associated with their occurrence; alternatives are known, but outcomes are in doubt. outcomes occurrence. What is the key to making good decisions under risk: accurately determining the probabilities associated with each alternative, every programmed decision was at one point or another a non-programmed decision. What does the traditional economic model assume about decision makers: decisions are made under conditions of certainty, managers seek to maximize benefits or minimize costs, managers are completely rational, you always select the best alternative.
