The Model of Decision Making That Explains How Managers Should

question 77

Multiple Choice

The model of decision making that explains how managers should make decisions, assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests, is known as the ________. For example, a manager who uses this model may be personally opposed to outsourcing jobs overseas, but she nonetheless decides to outsource customer-service operations to India because doing so is in the company's best interests.

• A) employee relations model
• B) focused decision-making model
• C) interpersonal-decision agenda
• D) solutions agenda
• E) rational decision-making model

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Definitions:

Productive Farmland

Land that is capable of producing a high yield of crops due to its fertility, favorable climate, or efficient management.

Diminishing Returns

The principle that as an increasing amount of one factor of production is employed, holding all other factors constant, the additional output generated will eventually decrease.

Marginal Productivity

Marginal productivity refers to the extra output, income, or benefit derived from using an additional unit of a variable factor of production, holding all other inputs constant.

Factors Of Production

The resources used to produce goods and services, traditionally categorized into land, labor, capital, and entrepreneurship.