Please enable JavaScript.
Coggle requires JavaScript to display documents.
Effective decision Making (7 steps in the Decision Making Process…
Effective decision Making
7 steps in the Decision Making Process
Evaluating Alternatives
Determining the value or adequacy of the alternatives generated.
Reaching Decisions
Decision making is commonly associated with making a final choice.Although choosing an alternatives would seem to be a straight-forward propositions,in reality the choice is rarely clear-cut.
Generating Alternatives
Once an opportunity has been identified or a problem diagnosed correctly, a manager develops various ways to solve the problems and achieve objectives.
Choosing Implementation Strategies
The bridge between reaching a decision and evaluating the results .
Identifying objectives
Objectives reflect the results the organization wants to attain.also called targets,standards or ends
Monitoring and Evaluating
No decision-making process is complete until the impact of the decision has been evaluated.Managers must observe the impact of the decision as objectively as possible and take further corrective action if it becomes necessary
Identifying opportunities and diagnosing problems
The clear identification of opportunities or the diagnosis of problems that require a decision. An assessment of opportunities and problems will only be as accurate as the information on which it is based
Types of Conditions
Condition under risk
Future conditions are not always known in advance
Condition under certainty
Cannot even assign subjective probabilities to each of the possible states of nature.
Condition under certainty
Knows exactly what the outcome will be as resources,time available and others factors are known
Conditions under ambiguity
Goals to be achieved is unclear
Sources of Organizational and Entrepreneurial Decisions
Problem
A condition that occurs when some aspect of organizational performance is less than desirable
Opportunities
Any situation that has the potential to provide additional beneficial outcomes
Decision making
The progress through which managers and leaders identify and resolve problems and capitalize on opportunities
Classifying Decision Situations
Programmed Decision
A decision made in response to a situation that is routine or recurring
Non programmed Decision
A decision made in response to a situation that is unique,unstructured,or poorly defined
Responses to Decision Situations
Programmed Decisions
Alternatives are familiar to decision markets.
Responses are routine
Non programmed Decision
Alternatives are not familiar to decisions markets
Responses require creativity
Two contrasting Decision-making models
Rational-Economics model
Prescriptive model framework of how (suggest how decisions should be made) that assumes managers have completely accurate information
Assumptions
Managers have "perfect Information"
Managers attempt to accomplish objectives that are known and agreed upon and have an extensive list of alternatives to choose from
Ethical decisions do not arise in the decision-making
Drawbacks
Leaders rarely have access to perfect information
Decisions markets may lack adequate knowledge about future consequences of alternatives
Personal factors can prevent a decision maker from acting in a completely rational manner
Behavioral Model
Descriptive Model(suggest how decisions are actually made)
Acknowledges the human limitations that make rational decisions difficult to achieve