Professional Documents
Culture Documents
The Nature of
Decision
Making
FUNDAMENTALS OF
MANAGEMENT (MGT 162)
◦Definition of decision making
◦Types of decision making
◦ Programmed decision
LEARNING ◦ Non-programmed decision
• A condition under which there is not full knowledge of the problem and
reasonable probabilities for alternative outcomes cannot be
UnCertainty determined.
• A situation in which a decision maker has neither certainty nor
reasonable probability about the outcome
Identifying Monitoring
Evaluating Reaching Choosing
opportunities Identifying Generating
implementation and evaluating
and diagnosing objectives alternatives alternatives decisions strategies feedback
problems
Three (3) major techniques of group
decision making
◦ Brainstorming
◦ A technique used to enhance creativity that encourages group
members to generate as many novel ideas as possible on a
GROUP
given topic without evaluating them
MAKING
and present the ideas at one time, without discussion
• Members’ ideas are recorded so that everyone can see them
• After all members’ ideas are presented, the group discusses
the ideas to clarify and evaluate them
◦ Delphi Technique
◦ An approach that uses the experts to make predictions and
forecasts about future events without meeting face-to-face
ADVANTAGES DISADVANTAGES
GROUP 1. More information and
knowledge are available.
1. The process takes longer than
individual decision making,
MAKING:
3. More acceptance of the final resulting from indecisiveness
decision is likely. may emerge.
4. Enhanced communication of 3. One person may dominate the
Disadvantages
emerge.