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Foundation of Decision Making (Decision making process (Development of…
Foundation of Decision Making
Decision making process
Development of Alternatives
Analysis of Alternatives
Allocation of Weights to criteria
Selection of an Alternative
Identification of Decision Criteria
Implementation of the Alternative
Identification of a problem
Evaluation of Decision Effectiveness
Three approaches to make decisions
Bounded Rationality
Accept solution that are "GOOD ENOUGH"
Make rational decision, nut are limited by their ability
Most decision don't fit the assumption of perfect rationality
Intuition and Managerial Decision Making
Making decisions base on experience, feelings, and accumulated judgement
Almost half of managers rely on it
For complementing, not replacing other approaches
Look to act quickly due to experience
Pay attention to intense feeling and emotions experience
Rational Model
Make logical and consistent choices to maximize value
Types of decision-making conditions
Problem
Structured
use
Rules
Policies
Procedures
Unstructured
Decision
Programmed
The most efficient way to handle structured problems
Nonprogrammed
When confronting an unstructured problem without cut-and-dried solution
Three different conditions managers face
Risk
Uncertainty
Certainty
Group decision making
Advantages
More alternatives
increase acceptance of a solution
Diversity of experience and perspectives
Increase legitimacy
More complete information
Disadvantages
Time-consuming
Minority Domination
Ambiguous responsibility
Pressure to conform
Improve group decision making
Nominal group technique
Electronic meeting
Brainstorming
Contemporary issues
Creativity and decision thinking
Creative-thinking skills
Intrinsic task motivation
Expertise
Big data
National culture
Accommodate the diversity in decision-making philosophies and practices
Recognize common ad accepted behavior