Mgmt 371 Chapter Nine Managing Decision Making and
- Slides: 21
Mgmt 371 Chapter Nine Managing Decision Making and Problem Solving Much of the slide content was created by Dr, Charlie Cook, Houghton Mifflin, Co. © 1
Types of Decisions: Programmed Decisions n Programmed Decisions - A decision that is a fairly structured decision or recurs with some frequency or both. n n n Matters of a routine nature that can be predicted, hence virtually automatic decisions can be made based on established rules and guidelines. Procedures n SOPs n Policies n Rules Examples n Processing drop/add slips destination. 2
Types of Decisions: Nonprogrammed Decisions n Nonprogrammed Decisions - A decision that is relatively unstructured and occurs much less often a programmed decision. n n n Developing solution for complex, unique, nonroutine problems Procedures n Creative problem-solving techniques n Brainstorming, GDSS, focus groups Examples: n New product development n Reengineering Processing drop/add slips Example: Choosing a vacation destination. 3
Decision-Making Conditions n Decision Making Under Certainty n The decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative. n Decision Making Under Risk n The availability of each alternative and its potential payoffs and costs are all associated with risks. n Think probability. n Decision Making Under Uncertainty n The decision maker does not know all the alternatives, the risks associated with each, or the consequences of each alternative. 4
The Classical Model of Decision Making 5
The Rational Decision-Making Process Recognize & Define Decision Situation Identify Alternatives Evaluate Alternatives Select Best Alternative Implement the Chosen Alternative Evaluate Results 6
Recognizing Defining the Decision Situation n Problem Identification n Deviation from past performance. n Deviation from planned performance. n Outside criticism. n Avoid: Defining problems to meet preconceived solutions. n Identifying symptoms as problems. n Losing hands. n 7
Types of Problems n Opportunities n Crisis Problems n Routine Problems 8
Identify Alternatives n Managers develop several feasible alternative courses of action. n Too often managers get into a rut and fail to develop creative alternatives. n New perspectives and inputs from others may be beneficial. 9
Evaluate Alternatives n Considerations n Legality of the alternatives. n Ethicality (ethicalness) of the alternatives. n Economic feasibility of the alternatives. n Practicality of the alternatives. 10
Choosing Among Alternatives n The alternative which best fits the decision- maker’s situation given consideration of the risk or uncertainty is selected. n Assumes perfect and complete information is available to the decision-maker. 11
Evaluating the Results n All effective managers attempt to ensure that actual results meet planned results. n Strive to learn from both your successes and your mistakes. Determine why expected outcomes failed to materialize. n Develop guidelines for future decision making. n 12
Evaluating the Results Intended Outcome Actual Outcome Determine Cause of Deviation Corrective Action 13
Evaluating Alternatives in the Decision-making Process 14
The Administrative Model of Decision Making 15
Behavioral Aspects of Decision Making n Bounded Rationality n Decision makers are limited by their values and unconscious reflexes, skills, and habits. n n n Limitations to our ability to interpret and process information. Incomplete and imperfect information. Prevents optimal solutions. n Satisficing n The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency to resolve the problem. 16
Behavioral Aspects of Decision Making n Coalition n A positive or negative political force in decision making which consists of an informal alliance of individuals or groups formed to achieve common goals. n n Decisions are subject to internal politics/candidates/agendas. Decisions among members must be consistent with the coalition’s goals. 17
Illogical & Irrational Decision Processes n Intuition – an innate belief about something without conscious consideration. n Escalation of Commitment – staying with a decision even when it appears to be wrong usually because resources or reputations have been so heavily invested in its outcome. 18
Group and Team Decision Making in Organizations n Forms of Group Decision Making n Interacting group or team n Consists of an existing group or newly formed team interacting and then making a decision. n Nominal groups n Generating ideas through the individual contributions of alternatives that are winnowed down to reach a decision. n Delphi groups n Developing a consensus of expert opinion from a panel of experts who individually contribute through a moderator. n Panelists do not have direct contact. 19
Advantages of Group Decision Making n More information and knowledge are available. n More alternatives are likely to be generated. n More acceptance of the final decision is likely. n Enhanced communication of the decision may occur. n Better decisions are usually made. 20
The Dark Side of Group Decision Making n More time consuming than individual decsion making (more costly). n Groups can be dominated and manipulated by powerful individuals. n Groupthink may occur. n Compromises arising from indecision may occur. n Committees may dilute accountability. n Groups may take greater risks than individuals. 21
- Mgmt 371
- Mgmt 371
- Mgmt 371 final exam
- Improving decision making and managing knowledge
- No decision snap decision responsible decision
- Dividend decision in financial management
- Chapter 6 prices and decision making assessment answers
- Five step decision making process
- Chapter 2 economic systems and decision making answer key
- Management chapter 5 planning and decision making
- Chapter 2 economic systems and decision making
- Chapter 2 economic systems and decision making
- Chapter 11 decision making and relevant information
- Chapter 2 management supervision and decision making
- Chapter 11 decision making and relevant information
- Options-based planning
- Chapter 1 section 3 economic choices and decision making
- Cis 371
- Cis 371
- 374 en yakın onluğa yuvarlama
- Cis 371
- 284 371 in word form