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CHAPTER 3: DECISION MAKING (DECISION MAKING PROCESS (1)Identifying…
CHAPTER 3: DECISION MAKING
DEFINITION
Decision Making: Manager & leader identify resolve problem and capitalize an oppurtunities
Problem: Condition that occur when some aspect of organizational performance
Oppurtunity: Situation that potential to provide additional beneficial outcomes
CHARACTERISTICS OF PROBLEM
When manager aware of it
Pressure to solve it
DECISION MAKING PROCESS
1)Identifying oppurtunities & diagnosing problem
2) Identifying objectives
3) Generating alteratives
4) Evaluating alternatives
6) Choosing implementation strategies
5) Reaching decision
7) Monitoring and evaluating
TYPE OF PROGRAM DECISIONS
Procedure
-Series of interrelated step that manager can use to respond
Rule
-Explicit statement that limits what manager can or cannot do
Policy
-A general guideline for making decision about structured problem
DECISION MAKING CONDITIONS
Certainty
-Manager can make accurate decison
Risk
-Manager able to estimate the likelihood of outcome
Uncertainty
-Limited information prevents estimation of outcome probabilities
CLASSIFYING DECISION SITUATIONS
Progammed situation
-Situation that is routine
Unprogrammed situation
-Situation that is unique or unstructured
TYPE OF PROBLEM
Structured
-Involve goals that are clear
-familiar
Unstructured
-Problem that are new or unsual
-Require custom-made solutions