Q AT 690 Chapter 14 Notes – Decision Making (50 Points) Name_________________________ 1. From the viewpoint of the owner, the concern in making any investment decision is __________ ____ _____ ______ ______? (WIIFM) 2. For managers, financial success or failure and even job security lies in the hands of the performance of the ___________________. 3. The pay plan for the manager is often based on the ____________________ of the shop which can range from _______________ plus ____________________ bonus to being strictly paid a __________________ of the net profit. 4. In a shop, the __________________ has the greatest degree of control over his or her individual success. 5. The technicians pay is based on individual ___________________. 6. Deciding whether any investment is worthwhile is essential in helping the investor to invest or not. To help make a decision on starting a business you need to ask yourself 3 questions. What are they? (3pts) 1. 2. 3. 7. What is the formula for ROI (Return on Investment)? 8. ROI asks how much will I get back beyond my original _______________ to justify the risks? 9. What is the formula for ROI percentage? 10. Not all cost and benefits can be reduced to __________________ terms. 11. When determining ROI you need take __________________ and ____________________ into account. 12. When making tough decisions you might want to consider writing down both the ___________ and__________ to help you decide whether to go ahead with the decision. 13. The decision model mentioned above was developed by ________ ________________. 14. Using this decision model may help you to determine whether you are entering a decision based on more an _________________ versus a _________________ basis. 15. Along with the money that can be gained or lost with a decision there are other factors that need to be weighed. It would be good to weigh the ____________ versus the _____________. 16. _______________ is what you stand to gain by taking a particular action and ___________ is what you potentially stand to lose. 17. ROI focuses on direct monetary rewards, benefits and cost where the risk versus rewards asks you to consider the _________________ factors. 18. While you can’t see the results of the in intangible factors right away they can have a greater _________-_________ impact on your success. 19. Steven Covey author of seven habits of highly effective people notes that everything you try to manage or control falls into ____________ realms. 20. What are the three realms?(3 pts) 1. 2. 3. 21. As a manager you do not have the time to do __________________ and need to direct your attention and energy toward those activities that will produce the ________________ ______________. 22. Things that you have no control over are considered _______________ ______ ______________. 23. Things that are within your ____________ ____ _____________ are things that you can directly ____________ and ______________. 24. Once something requires external resources it moves from span of control to ______________ ______ _________________. 25. Under sphere of influence you do not have absolute control over other _____________, their _________________, or external ________________. 26. You have absolute control over other people, their activities, or external resources so you have to depend upon them to agree to act as you want them to __________. 27. Under the sphere of influence you need to _____________ or _______________ other people. 28. You can _______________ the result but you cannot _________________ the result yourself. 29. You will face many obstacles in your career as a manager and learning to identify roadblocks early and often is a key to _________________. 30. There are things that will happen that are beyond your ________________ but you are ultimately responsible for achieving your ________________. 31. As a manager you need to direct your energies where they have their maximum _____________. 32. When you see a problem occur you need to determine if you are dealing with the _________ problem or just the ___________________. 33. In order to fix a problem you will have identify where the root cause of the problem originates and make changes at the __________________ level with the organization. 34. The ____________________ level of a company is isolated from the day-to-day operations. 35. The organization level is considered the ____________________ level where the big picture decisions are made that determine the direction of the _____________________. 36. The long term direction of the business is driven by ________ ___________________ following the organizations _________________, _______________ and _________________. 37. The ___________________ level of the organization is where the resources are aligned to create and efficient system that gets the greatest results for the investment made (In labor, space and resources. 38. Producing the ¬¬¬¬¬¬________________ and/or _________________ that are in demand by customers is where the value is calculated. 39. ___________ is what customers purchase. 40. The _________________ value of your product or service makes the difference between a satisfied _______________ customer and one that is ____________ forever to the competition. 41. The ________/__________________ level is where the work is actually done and the ___________________ employees function every day. 42. The job/performer level in the automotive service department would be the group of ________________ ___________________ . 43. All of the support personnel in an automotive shop are non-productive but ___________________ employees. 44. The job/performer level is where the issues directly related to the ________________ employees occur. 45. Providing clear _________________, _________________ and ___________________ to frontline employees is important. 46. In order to effectively change performance, it is necessary to approach the problem at least one level _______________ where the problem is observed.