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A comprehensive overview of decision-making techniques, exploring various methods for individual and group decision-making. It delves into the advantages and disadvantages of each technique, including brainstorming, nominal group technique, delphi technique, and rational decision-making. The document also examines decision-making under uncertainty and risk, outlining criteria such as maximax, maximin, laplace, minimax regret, and expected value. This resource is valuable for students seeking to understand and apply effective decision-making strategies in academic and professional settings.
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QDC1: Decision Making Techniques If your boss holds you accountable for a decision but you choose to make it in a group, which type of decision is it? ✔✔Individual This decision-making technique solicits ideas in very large volume and quick succession. ✔✔Brainstorming What are 2 Disadvantages of group decision making? ✔✔ a) Social Pressure; b) Goal Displacement What are 2 ADVANTAGES of group decision making? ✔✔ a) Different perspectives; b) Greater pool of knowledge Which type of group decision making requires the use of questionnaires? ✔✔Delphi When we work in a group, what is the first step of problem solving? ✔✔Define the problem Name 3 group decision making techniques: ✔✔ a) Brainstorming; b) Nominal Group Technique c) Delphi Technique Which decision making technique uses the Affinity Diagram? ✔✔Brainstorm What is the purpose of the affinity diagram? ✔✔organize ideas into various categories What supplies are needed for the affinity diagram? ✔✔sticky notes What is the PURPOSE of brainstorming? ✔✔Generate quantity of ideas - not quality What is a benefit of Brainstorming? ✔✔Criticism is withheld; Helps others to build on ideas Which Decision Making Technique allows team members to write out their solution, then come together in small group? ✔✔Nominal Group Technique What is a benefit to Nominal Group Technique? ✔✔Allows group to have decision in only a few hours.
What are disadvantages of Nominal Group think? ✔✔Requires trained facilitator, and only 1 narrowly defined problem to be considered at one time. Which decision making technique uses questionnaires? ✔✔Delphi technique Who identifies issue to investigate when using the Delphi technique? ✔✔Manager What is the key tool when using Delphi technique? ✔✔Questionnaire Which group decision technique is used to collect feedback, summarize, and repeat until issue is resolved? ✔✔Delphi Technique Which group technique discourages pressure to confirm? ✔✔Nominal group think Name 5 advantages of team decision-making: ✔✔Dig it! D.I.G.G.T. a) Different perspective; b) Increased acceptance; c) Greater comprehension; d) greater pool of knowledge; e) Training ground: less experienced learn from the team. What are some disadvantages of team decision making: ✔✔ a) Dig less! D.G.G.L.S.; b) Domination by few; c) Goal Displacement; d) Group Think; e) Logrolling; f) Social Pressure What is Goal Displacement? ✔✔Secondary considerations such as winning argument, making point, getting back at rival What is Group Think? ✔✔desire for unanimity override sound judgement when gathering and evaluating alternative courses of action What is another name for logrolling? ✔✔dominating What is logrolling? ✔✔political wheeling and dealing that can displace sound thinking when pet project or vested interest is at stake Which Decision Making process outlines HOW managers should make logical and optimal decisions? ✔✔Rational Decision Making
payoffs for the alternatives. The Expected Value (EV) is the product of all feasible outcomes with their probabilities of occurrence followed by the summation of all the values. b) Expected Opportunity Loss Criterion✔✔Expected Opportunity Loss Criterion denotes the reduction of maximum profits in case of the decision maker choosing an alternative. c) Expected Value for Perfect Information (EVPI) ✔✔ This criterion is based on the fact that the decision maker can get the perfect information which is complete and accurate and hence removes all the uncertainty for the future event. EVPI is calculated by subtracting the maximum expected monetary value from the expected profit from the perfect information.