Professional Documents
Culture Documents
Profile of a Decision
The Decision-Making Process
require action.
A decision is an act requiring
not interchangeable.
(contd)
Decisions made by lower levels of
management implement the strategic decisions of top managers in the operating areas of the organization. Decisions invariably involve organizational change and the commitment of scarce resources.
making
Decisional Inputs
(Objectives, information, resources, energy)
Interactional Levels
Permeable Boundaries
Decisional Outputs
(Actions transactions, outcomes)
External Environment
A Typology of Decisions
Decision-making strategies
Computational Judgmental
Compromise
Inspirational
A Typology of Decisions
Decision categories
(contd)
A Typology of Decisions
Decision combinations
(contd)
Classifications
inspirational
Structure
Strategy
Weak Preference
Compromise Decision-Making Strategy
decisions. Operating management makes Category I decisions. Middle management supervises the making of Category I decisions and supports the making of Category II decisions.
alternatives
Decision involves organizational
change
Decision requires a commitment of
resources
an end to itself
Decision maker tends to
overestimate success
Success is measurable through
objectives attainment
making functions. Decision-making functions are highly interrelated and interdependent. The process is highly dynamic with several sub processes. The process can accommodate several concurrent Category II decisions.
Implementing decisions
information
The rising cost of additional
information
Abort the search in the zone of cost
effectiveness
alternatives. One alternative is to do nothing. Alternatives are evaluated using criteria derived from the objective.
(contd)
Also:
Evaluation should include an
(contd)
Also:
The best choice is likely to ensue
(contd)
Areas contributing to decision success:
Observance of operating
constraints Influence of the decision maker Involvement of decision implementers Absence of conflict of interest
(contd)
Areas detracting from decision success:
Disregard of timeliness
relationships
observing the implemented decision in relation to its standard derived from the objective.
Also:
corrective action.
(contd)
Unacceptable variance from standard performance should elicit timely and appropriate Corrective action (sub processes)
may result in the implementation of another alternative which, if not successful, may result in a revision of the original objective.