ManagementLesson 1 of 5 in the course Managerial Decision-Making

Managerial Decisions: Uncertainty, Stakeholders, Ethics, and Sustainability

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

Managers make decisions continually, and the quality of those decisions can affect an entire organization or a single department. This lesson introduces managerial decision-making, stakeholders, and the consequences decisions can have.

Decision-making is the action or process of thinking through possible options and selecting one. Managers make decisions as part of their everyday work, from setting organizational direction to arranging the work of a team.

All flashcards

What is managerial decision-making?
It is the process of thinking through possible options and selecting one as part of managing an organization or its work.
Who counts as a stakeholder?
Any individual or group affected by an organization, including customers, employees, and shareholders.
How should managers decide whether to gather more information?
They should weigh the value of learning more against the consequences of delaying action.
Why should managers consider people beyond shareholders when making decisions?
Decisions affect stakeholders, and harm to them can also damage an organization’s longer-term financial viability.
What does New Belgium Brewing illustrate about business and environmental goals?
A business can pursue environmental stewardship alongside business performance through deliberate choices.

Quiz questions

  1. When information is incomplete, how should a manager decide whether to gather more before acting?Answer: Compare the value of more information with the cost of waiting.
  2. What is a risk of acting too quickly on a management decision?Answer: Resources may be committed to projects with little chance of success.
  3. When every available option has disadvantages, what should a manager aim to do?Answer: Choose a considered option that minimizes harm.
  4. What can result when managers prioritize short-term shareholder wealth in ways that harm others?Answer: Bad publicity, customer boycotts, or government fines.
  5. New Belgium Brewing purchased wind-generated electricity despite its higher cost at the time. What does this choice illustrate?Answer: A company can incorporate environmental stewardship into its business practices.

Based on Principles of Management by David S. Bright, Anastasia H. Cortes, Eva Hartmann, K. Praveen Parboteeah, Jon L. Pierce, Monique Reece, Amit Shah, Siri Terjesen, Joseph Weiss, Margaret A. White, Donald G. Gardner, Jason Lambert et al. (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.

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