Final answer:
The correct statement is that a systems approach to decision-making assumes that the entire system must be considered. This approach is holistic, considering the interrelationships between subsystems to ensure comprehensive decision-making in contrast to isolated views.
Step-by-step explanation:
The question centers on the systems approach to decision making. The correct statement is: b) A systems approach to decision-making assumes that the entire system must be considered when making decisions.
The systems approach is a holistic method of addressing problems or making decisions in complex entities where the interrelationships between subsystems are highly important. This approach looks at the system as a whole, considering how each part interacts with the others. The idea is that an action in one area of a system can affect the outcome in another area, often in unpredictable ways. Therefore, a systems approach to decision making does not ignore these interrelationships; it relies on them to build a more comprehensive understanding of the situation.
Illustratively, when making decisions within an organization, a manager would look beyond individual departments (subsystems) and consider the organization as a coherent entity, recognizing that decisions in one department can have ripple effects throughout the entire organization.
This approach contrasts the segmented or isolated point of view where each department might make decisions without considering the wider implications. This integrated decision-making process aligns well with how humans tend to consider their own interests as well as the interests of others when making choices, according to the various knowledge references provided. It is also reflective of the need for more complex information and decision-making processes than what might be suggested by simplified models like budget constraints or production possibility frontiers.