CHAPTER 3 - THE NATURE OF DECISION MAKING - Coggle Diagram
CHAPTER 3 - THE NATURE OF DECISION MAKING
The act of choosing one alernative from a set of alternatives.
is the discrepancy between an actual condition and a desired condition-the difference between what is occuring and what one wishes would occur.
the manager have insufficient information to know the consequences of different actions.
: launching a new product, opening new branch
the manager has sufficient information to precisely oredict the consequences of one's actions.
: we know the exact interest rate being offered by the Bank.
the manager has available information that allows to estimate the likelihood of various consequences.
: invest money to the share trading. a risk situation requires the use of probability for success or failure.
- repetitive or routine and can be solved through clear cut mechanical procedures,- up to 90%
NON PROGRAMMED DECISIONS
- exceptional or non recurring and are often made under crisis conditions
Concern with relatively routine problems.
simple and have a small impact
the information related to these problems is readily available
very little time and effort
lower levels of management
e.g personnel coming in late habitually
NON PROGRAMMED DECISION
concern with unique and unusual problems
complex and have a long term impact
the information related to these problems is not readily available
high degree of executive judgement
higher level in the organization
e.g expansion of business
situation when people are brought together to solve problems by sharing their opinion and inputs
METHODS OF GROUP DECISION MAKING
-technique generally used in a group setting so as to quickly generate a large number of ideas about a specific problem or topic
2. THE DELPHI METHOD
-a series of questionnaires,surveys, etc are sent to selected respondents(the Delphi group) through a facilitator who oversees responses of their panel of experts
3. NOMINAL GROUP TECHNIQUE
-(NGT) is a structured variation of a small group discussion to reach consensus. Gathers information by asking individuals to respond to questions posed by a moderatior and then asking participants to prioritize the ideas or suggestions of all group members.
DECISION MAKING PROCESS
Identfying and diagnosing the problem
-Happens when managers recognize that there is a problem exist and must be solved
Generating alternatives solutions
- A ready made solution,idea that have been tried before.
3. Evaluating alternatives
- involves determining valueor adequacy of the alternatives
4. Making the choice
- it require managers to realize the best possible outcome
5. Implementing the decision
- understand the choice and why it was made and be committed to its successful implementation