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Decision Making-An Essence To Problem Solving
Decision Making-An Essence To Problem Solving
the process of responding to a problem by searching for and selecting a solution or course of action that will create value for organisational stakeholders. There are basically two kinds of decision that managers called upon to make:
Structured problems
* Involved goals that clear. *Are familiar(have occurred before) *Are easily and completely defined- information about the problem is available and complete.
Programmed decision
*A repetitive decision the can be handled by a routine approach.
Non-programmed decisions
* Decision that are unique and nonrecurring. * Decision that generate unique responses.
Procedure
* A series of interrelated steps that a manager can use to respond ( applying a policy) to a structured problem.
Rule
* an explicit statement that limits what a manager or employee can or cannot do.
Evaluate Alternatives
Characteristics of Problems
* A problem becomes a problem when a manager becomes aware of it. * there is a pressure to solve the problem. * the manager must have the authority, information, or resources needed to solve the problem.
Choosing the best alternative * The alternative with the highest total weight is chosen.
The soundness of the decision is judged by its outcomes. * How effectively was the problem resolved by outcomes resulting from the chosen alternatives? * if the problem was not resolve, what went wrong?
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Development of alternatives
Analyzing of alternatives
Selection of alternatives
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Implementation of alternatives
What is Intuition ?
Their past experiences Ethical values and culture Values or ethicsbased Decisions Subconscious mental processing
Feelings or emotions
Decision-making Conditions
Uncertainty * limited information prevents estimation of outcome probabilities for alternatives associated with the problem and may force managers or rely on intuition, hunches, and gut feelings. # Maximax: The optimistic managers choice to
maximize the maximum payoff.
Decision-making styles
Dimensions of decision-making styles * Ways of thinking * Rational,orderly, and consistent. * Intuitive, creative, and unique. Tolerance of ambiguity *Low tolerance:require consistency and order. *High tolerance: multiple thoughts simultaneously.
Randomness
Knowing what you know, what you dont know, and how to find what you know yields better and more timely decisions.
(Contd)
Decision Making
The process of identifying and choosing alternative courses
report making more decisions and having less time to make them.
Complex streams of decisions Sources of decision complexity Perceptual and behavioral decision traps
(Contd)
particular alternative. Interdisciplinary input increases the number of persons to be consulted before a decision is made.
(Contd)
Pooled decision making increases the number of
persons playing a part in the decision process.
Behavioral models
Descriptions of management based on behavioral scientists observations of what managers actually do in their jobs.