Unit 3

Decision - Making
Learning Outcomes:
• Describe the steps in the decision-making process
• Identify the types of decisions that are used to solve problems
THE NATURE OF MANAGERIAL
DECISION MAKING
Decision making is the process by which managers respond to
opportunities and threats by analyzing options and making
determinations about specific organizational goals and courses of
action.
Categories of Decisions
• Programmed
• Non-programmed

FOM 4.3
Programmed Decision

Procedure

Rule

Policy
FOM 4.4
 Relationship of Problems,
Decisions, and Level

Ill-Structured Top
Non-programmed
Decisions
Type of
Level
Problem

Programmed
Decisions
Lower
Well-Structured

FOM 4.5
1

Identify
The Decision-Making
Problem Process

2 3 6
Analyze Collect Select
the problem information Alternative

7
Implement
4 5 Alternative
Develop Analyze
Alternatives Alternatives
8
Evaluate
Results