Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
6Activity
0 of .
Results for:
No results containing your search query
P. 1
Process Model - Decision Making

Process Model - Decision Making

Ratings: (0)|Views: 205 |Likes:
Published by Rey Beria
Problem solving and decision-making are important skills for business and life. Problem-solving often involves decision-making, and decision-making is especially important for management and leadership. There are processes and techniques to improve decision-making and the quality of decisions.
Problem solving and decision-making are important skills for business and life. Problem-solving often involves decision-making, and decision-making is especially important for management and leadership. There are processes and techniques to improve decision-making and the quality of decisions.

More info:

Published by: Rey Beria on Jan 31, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

12/01/2012

pdf

text

original

 
 MODELS OF DECISION MAKING
 
- Process Model -
 ³Minds are like parachutes. They only function when they are open.´- Richards J. Heuer, Jr.Problem solving and decision-making are important skills for business and life. Problem-solving ofteninvolves decision-making, and decision-making is especially important for management and leadership.There are processes and techniques to improve decision-making and the quality of decisions. Decision-making is more natural to certain personalities, so these people should focus more on improving the qualityof their decisions.
 The Decision-Making Process Model
-
provides a framework and guidelines for working through to a logical conclusion, questions whichrequire action
 
Stages/Phases of Process Model1. IDENTIFICATION PHASE
 
Recognition
- describing why a decision is called for.- One way of deciding if a problem exists is to couch (state) the problem in terms of whatone wanted or expected and the actual situation. In this way a problem is defined asthe difference between expected and/or desired outcomes and actual outcomes.
Diagnosis
- identifying the most desired outcome(s) of the decision making process.- This careful attention to definition in terms of outcomes allows one to clearly state theproblem. This is a critical consideration because how one defines a problemdetermines how one defines causes and where one searches for solutions.
2. DEVELOPMENT PHASE
 
Search
- seeking information that would give clarity to the given problem.- When a consumer discovers a problem, he/He is likely to search for more information.Through gathering information, the consumer learns more about some solutions that arevaluable in solving the problem and their features and characteristics.
Design
- formulation of possible solutions for the identified problem.- Devise multiple solutions for study and evaluation. If you only have one alternative, you donot have a decision.
3. SELECTION PHASE
 
Screen
- it indicates whether a solution is desirable based on some previously establishedminimum criterion or criteria /Standard Operating Procedures (SOP).
Analysis
- analyzing the information and hypothesizing about positive and negative consequences.
 
- As you evaluate each alternative, you should be looking at the likely positive and negativecones for each. It is unusual to find one alternative that would completely resolve theproblem and is heads and shoulders better than all others. Differences in the "value" of respective alternatives are typically small, relative and a function of the decision maker'spersonal perceptions, biases and predispositions.
 
- This distinction between fact-based evaluation and non-fact -based evaluation is includedto assist the decision maker in developing a "confidence score" for each alternative. Thedecision maker needs to determine not just what results each alternative could yield, buthow probable it is that those results will be realized. The more the evaluation is fact-based,the more confident he/He can be that the expected outcome will occur.
 Judgmen
t- evaluating desirability of various choices.
Authorization
- implementing the best solution for the problem encountered- It is not enough to think about it or talk about it or even decide to do it. A decision onlycounts when it is implemented. As Lou Gerstner (CEO of IBM) said, "There are no moreprizes for predicting rain. There are only prizes for building arks."
Sample of Process Model Decision Making
Problem Recognition
 
In this information processing model, the consumer buying process begins when the buyer recognizes aproblem or need. For example, Doug may realize that his best suit doesn¶t look contemporary any more.Or, Person A may recognize that her personal computer is not performing as well as He thought it should.These are the kinds of problem that we as consumers encounter all the time. When we found out adifference between the actual state and a desired state, a problem is recognized. When we find a problem,we usually try to solve the problem. We, in other words, recognize the need to solve the problem. Buthow?
nformation Search and Design
When a consumer discovers a problem, he/He is likely to search for more information. Person A maysimply pay more attention to product information of a personal computer. He becomes more attentive tocomputer ads, computers purchased by her friends, and peer conversations about computers. Or, He maymore actively seek information by visiting stores, talking to friends, or reading computer magazines, amongothers. Through gathering information, the consumer learns more about some brands that compete in themarket and their features and characteristics. Theoretically, there is a
total set 
of brands available toPerson A, but He will become aware of only a subset of the brands (
awareness set 
) in the market. Some othese brands may satisfy her initial buying criteria, such as price and processing speed (
consideration set 
). As Person A proceeds to more information search, only a few will remain as strong candidates (
choice set 
).
Screen and Analysis of Alternatives

Activity (6)

You've already reviewed this. Edit your review.
1 thousand reads
1 hundred reads
Djy Duhamy liked this
Vinus Lojera liked this
Vinus Lojera liked this
alneb_sumy liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->