MANAGEMENT DECISION MAKING

Definition    Purposeful selection from among a set of alternatives in light of a given objective.      . Every decision making process produces a final choice. The output can be an action or an opinion of choice.Decision making . The mental processes resulting in the selection of a course of action among several alternatives.

Management skills in analyzing information and handling its shortcomings. 6. . Risk and attitudes to risk.Quality of Decision-Making depends on…       1. 2. 3. Human factors. 4. Experience and natural ability in decision-making. Good information. Training of managers in decision-making skills. 5.

. Programmed Decisions. 2. Standard decisions which follow the same routine. Non-standard and non-routine. Non-Programmed Decisions.Types of Business Decisions         1.

Levels of Decision Making .

Management Decision Making Methods         Rational Decision Making. Innovative Decision Making. Intuitive Decision Making. .

Rational Decision Making .

Intuitive Decision Making A good memory  An extensive body of knowledge  A variety of experience memories and accurate interpretation of them  Memory of other peoples’ experiences and accurate interpretation of them  Ability to distinguish between relevant and irrelevant concepts  Good reasoning and analytical ability  .

Innovative Decision Making   Unconscious Scanning Intuition Insight Logical Formulation      .

Management Decision Makers       Decisive Decision Makers Flexible Decision Makers Hierarchical Decision Makers Integrative Decision Makers Systemic Decision Makers    .

Management Decision Making Styles       Reflexive Reflective Consistent .

Management Decision Making Styles High Analytical Conceptual Tolerance for ambiguity Careful decision makers Broad outlook Adapt to new situation More alternatives Directive Less information Few alternatives Low Rational Way of thinking Intuitive Behavioral Receptive to suggestions Avoid conflicts .

 Decision randomness.  .  Economic climate.  People’s abilities and feelings.  Existing Business Policy.  Lack of technology.  Decision coercion.Constraints on DecisionMaking  Availability of time.

Show flexibility to increase acceptability.Improving Decision Making         Improve the setting. Beware of personal biases. . Use Logical Techniques.

 “Success in management is when those you manage succeed. and the organization you work for succeeds.” .

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