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Foundations of Decision Making (The Decision Making Process (Allocation of…
Foundations of Decision Making
The Decision Making Process
Allocation of Weighs to Criteria
not all criteria is equally important so the manager need to decide and evaluate which criteria is important
Developments of Alternatives
The decision maker lists the alternatives that could successfully resolve the problem
Identification of Decision Criteria
The decision criteria in a business are for variables or characteristics that are important to the organization making the decision.
Selection of an Alternative
When the alternative have been identified, the decision maker critically analyzes each one
Identification of a problem
The aim of this stage is to identify and describe the problems that are preventing the goals and objectives defined in the previous step from being achieved
Implementation of the Alternative
choosing the best alternative from among those assessed
Evaluation of Decision Effectiveness
Perform surveys and ask customers to answers questions to evaluate the effectiveness of the decisions.
3 Approaches Managers
Bounded Rationality
making decisions that are rational within the limits of a manager's ability to process information
Rational Model
describe choices that are consistent and value-maximizing within specified constraints
Intuition and Managerial Decision Making
making decision on the basis of experience, feelings, and accumulated judgement
Solutions for structured problems
Rules
an explicit statement that tells that a manager what he or she must do - or must not do
Procedures
a series of interrelated sequential steps that a manager can use when responding to a well-structured problem
Policies
Third guide for making programmed decisions