Question 1:

(a) Decision making is the essence of management, and every decision starts with a problem.

(i) What is a decision?
(ii) What is a problem?

(b) Decision making is not as simple as just choosing among alternatives. It involves eight steps in the process.

(i) Make a list of the eight steps involved in decision making.

(ii) Describe how you would go through each step in the process. Use an example to illustrate your answer.

(c) Managers face three different conditions when making decisions. What are the characteristics of each?

Question 2:

(a) Define planning.

(b) Explain the following terms:

(i). Strategic plans,
(ii). Operational plans,
(iii). Long term plans,
(iv). Short-term plans, and
(v). Specific plans.

(c) Planning seems to take a lot of effort. However, there are at least four reasons why managers should plan.

(i) What are those reasons?
(ii) Elaborate on each of the reasons.