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1. Define efficiency and effectiveness, and compare and contrast the two.

2. Why is it important to focus on the effectiveness of a decision, not necessarily the efficiency of making a decision?

3. What are some of the measures of effectiveness in a toy manufacturing plant, a restaurant, an educational institution, and the U.S. Congress?

4. Even though implementation of a decision involves change, and change management is very difficult, explain how change management has not changed very much in thousands of years. Use specific examples throughout history.



1. Despite the advances in ADM methods and tools, why should we still insist that a human being be responsible for every decision?

2. Why should all information system development projects focus on some aspect of decision making in practice?

3. Your company is considering opening a branch in China. List typical activities in each phase of the decision (intelligence, design, choice, implementation) of whether to open a branch.

4. You are about to sell your car. What principles of choice are you most likely to use in deciding whether to offer or reject offers? Explain.

5. You are about to buy a car. Using Simon’s four-phase model, describe your activities at each step.



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