5Aga) Please highlight answers Please type or write neatly and legible Discuss t
ID: 3283319 • Letter: 5
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5Aga) Please highlight answers Please type or write neatly and legible Discuss the different roles played by the qualitative and quantitative approsches to managerial decision making. Why isit important for a manager or decision maker to have a good understanding of both of these approaches to decision making? The analysis phase of decisión making include Qualitative analysis is based Quantitative analysis is based ectiveness is usually increased byY ach are usually increased by only qualitative analysis only quantitative analysis both qualitative and quantitative analysis neither qualitative or quantitative analysis at this pointExplanation / Answer
Decision making is basically the action or process of making any important decision. The person involved in this process has to be cautious of the consequences and the outcomes that as a result of this particular decision.
When using a qualitative approach to managerial decision making you are making decisions based on past experiences with the same or similar situations. It requires experiential knowledge of the various factors involved in a decision The manager is likely to quickly analyze the situation and then a familiar feel comes back which we refer to as intuition and you handle the decision similar to the way you have in the past. This approach is okay to use in situations that do not require a lot of thought, and the intuition you are using resulted in a positive outcome.
On the other hand, If you have not had any similar situations or knowledge of the problem at hand that needs a decision it is best for you to use the quantitative approach. This approach is based on mathematical structure therefore it is measureable. Using it means that you will take your time to gather information and data needed to make the decision. It is normally used when the issue is quite complex and it requires deep detail and knowledge is required.
Analysing the problem means classifying it and finding the facts. It is necessary to classify the problem in order to know who must make the decision, who must be consulted in making it and who must be informed.To make a sound decision, it is not necessary to have all the facts; but it is necessary to know what information is lacking in order to judge how much of a risk the decision involves, as well as the degree of precision and rigidity that the proposed course of action can afford. The manager must know where lack of information has forced him to guess. He must define the unknown. Hence, the analysis phase of decision making includes both qualitative and quantitative analysis.
Based on the above explanation it is quite clear that the qualitative analysis is based primarily on judgement, experience and intuition.
Based on the above explanation it is quite clear that the quantitative analysis is based primarily on quantitative facts, data and mathematical expressions.
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