MCQ: Decision Making- 3 - SSC CGL MCQ

The Nicosia Model is a model of consumer decision-making that is based on the following assumptions:

• Consumers are rational decision-makers who make choices that are in their best interests.
• Consumers have limited time and resources, so they will only engage in extensive problem solving for high-involvement purchases.
• Consumers are influenced by the firm's marketing messages, but they also have their own unique set of needs, wants, and preferences.
• The Nicosia Model is a simplified model of consumer decision-making. It does not take into account all of the factors that can influence consumer decision-making, such as the consumer's personality, demographics, social and cultural environment, past experiences, financial resources, and perceived risk of making a purchase.

The Nicosia Model is also a static model, which means that it does not take into account the dynamic nature of consumer decision-making. Consumers may change their minds about a purchase decision over time, or they may be influenced by new information that they receive.

The Nicosia Model is a useful tool for understanding consumer decision-making, but it is important to keep its limitations in mind. The model is not a perfect representation of how consumers make decisions, but it can be a helpful starting point for understanding the factors that influence consumer behavior.

• At the Decision analysis stage, the manager assesses the available information, evaluates alternatives, and analyzes the potential outcomes to make informed decisions.
• During the Decision analysis stage, the manager identifies the types of decisions that need to be made to carry on the work of the organization.
• This includes determining the goals and objectives, evaluating different courses of action, considering the potential risks and benefits, and selecting the most suitable decision based on the available information and analysis.
• ​The Decision analysis stage is crucial for effective management as it helps the manager understand the challenges, opportunities, and requirements associated with the work of the organization.
• By analysing the decisions that need to be made, the manager can develop strategies, allocate resources, and plan the implementation of actions to achieve the desired outcomes.

Decision making - 

• The decision-making process involves gathering information, evaluating alternatives, and ultimately making a final decision..
• Proper decision-making techniques can help ensure that people handle problems as effectively as possible and implement solutions with minimal risk.

The following common difficulties are faced in making decisions and implementing are as follows - 

1. Inadequate Information - 

• This is a major issue for all managers. A manager is adrift in a sea of uncertainty when there is a lack of information.
• Furthermore, most decisions involve far too many complex variables for a single person to thoroughly examine.

2. Unfavorable Environment - 

• The physical and organizational environment that prevails in an enterprise influence both the nature and implementation of decisions.
• When there is widespread goodwill and trust, and when employees are properly motivated, the manager is encouraged to make confident decisions.
• On the other hand, in the opposite situation, he avoids making decisions.

3. Subordinates' Unacceptance - 

• Acceptance will almost certainly be required for effective implementation if subordinates have a stake in the decision or are likely to be significantly affected by it.
• Subordinates, on the other hand, may not care what decision is made. Acceptance is not an issue in such situations.

4.Inadequate Communication - 

• Another significant issue in decision-making is ineffective decision communication.
• This complicates implementation. As a result, the manager must take care to communicate all decisions to employees in clear, precise, and simple language.

5.Incorrect Timing - 

• The issue with decision-making is not simply making the right decision.
• It is also a matter of choosing an appropriate time to make a decision. If the decision is correct but the time is not right, it will be useless.

Hence, Option 3 (A), (B), (D), (E) Only is correct answer.

Key Points
Decision-making

• It involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem.
• A right decision can bring profitability to the organization.
• A wrong decision can affect the goodwill of the organization.
• Every decision impacts the organization and its employee for a long term.
• Allowing those impacted by the outcome to participate in the process is important in effectively implementing the chosen alternative in the decision- making process.
  • ​The individuals will feel that they are valued and the organisation care about their well being too.

Delegating the decision making is NOT one of the eight steps in the decision-making process.

Decision-making:

• It involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem
• A right decision can bring profitability to the organization.
• A wrong decision can affect the goodwill of the organization.
• Every decision impacts the organization and its employee for a long term.a

The policy is a critical element of effective management. The policy is becoming increasingly important in today's business world.

The policy defines a specific area in which decisions are made according to the goals of the organization.

Decision-making

• It involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem.
• A right decision can bring profitability to the organization.
• A wrong decision can affect the goodwill of the organization.
• Every decision impacts the organization and its employee for a long term.
• Allowing those impacted by the outcome to participate in the process is important in effectively implementing the chosen alternative in the decision- making process.
  • ​The individuals will feel that they are valued and the organisation care about their well being too.

Assumptions of Rational Decision Making Model:

• A rational decision-making model brings a structured problem or reasonable thought process to the act of deciding.
• This model assumes that people will make choices from the alternatives that will provide maximum benefits and minimize any costs for reaching an agreed goal.
• This model assumes that people will choose the object that provides the greatest reward at the lowest cost.
• This model assumes that an individual has complete information on which to base a choice.
• This model assumes that there is a high level of certainty regarding the environment i.e. where the data can be collected and analyzed. 
• This model assumes that the individual has the cognitive ability, time, and resources to evaluate each alternative against the others.

Therefore, Incomplete information is NOT an assumption underpinning the rational decision-making model.

Staff- Selection is an important aspect of the organisation because the quantity and quality of products/services depend on how efficient the staff is.

• Matching the right skills to the open roles is key for effective selection.
• For one post, there are many candidates, deciding which one to choose is an important decision.
• It is equally important to know what are the expectation of the new joinee. Meeting those expectations is crucial because it translates into how hard the new joinee would be willing to work.
• The new joinee must agree to the specifications of the job, only then both employee and employer would have fruitful result of the process.

Poisson distribution:

• The definition of a Poisson distribution is used to simulate the discrete probability of an event when independent occurrences happen at a known constant mean rate over a set period of time. Denis Poisson, a French mathematician, is honoured by the name Poisson distribution.
• In other words, the probability that an event will occur a specific number of times within a specific time frame is determined using the Poisson distribution.

The decision-making process involves gathering information, evaluating alternatives, and making a final decision with the goal of making the best decision possible.

Data is inadequate here to get any conclusion because nothing is mentioned about marks in the test or deposit of security. Hence option D is correct.

The candidate will be selected in the INFRARED Company because she has satisfied all the required criteria for the post.

Data provided is insufficient to get any conclusion. So option D is the right choice for Rohit Agrawal.

The case will be assigned to the VP who will decide the future proceedings. Hence option C is the right choice for the question.