Scott is the new manager of the credit card department of a large bank. One of his first changes, directed by the president, was to reorganize the activities of the department. He is reluctant to start the reorganization without including a comprehensive report from accounting about the current costs of operations and possible costs of changes.
Required:
Explain how the decision process model can assist the manager and discuss the steps in the decision process model that might be taken to ensure an orderly decision process.

Question

Quizplus · Accepted Answer

The Answer is The accounting information can assist the manager by helping him understand the actual costs of operating the department. Costs would probably need to be categorized as fixed and variable to help the manager understand how costs behave when changes take place.
The steps that should be taken include:
1. Identify the problem and uncertainties.
2. Obtain information.
3. Make predictions about the future.
4. Make decisions by choosing among the alternatives.
5. Implement the decision, evaluate the performance, and learn.
Feedback can affect future predictions, the prediction method used, the decision model, or the implementation. Careful monitoring aids in fine-tuning the new system and ensuring that all necessary activities are being properly performed.

Scott Is the New Manager of the Credit Card Department