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Managerial decision making - Coggle Diagram
Managerial decision making
It is important to recognize the decision-making of managers, since the efficient work of employees, shareholders, etc. depends on it.
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There may be adverse outcomes as a result of these decisions, such as:
Increased expenses if there are too many workers or too many supplies
Frustration among employees, reduced morale, and increased turnover
One quality of an effective leader is the ability to determine when to delay a decision and gather more information, and when to make a decision with the information available.
Bad publicity, badmouthing customers, and government fines are possible
Group decision making
Advantages of Group Decisions
incorporate different perspectives and ideas
Disadvantages
Some groups stagnate from conflict, groupthink occurs when members choose not to express their concerns or objections because they prefer to keep the peace and not upset or antagonize others
Techniques for Making Better Programmed Decisions maker selects the first acceptable solution
Techniques for Making Better Nonprogrammed Decisions For situations in which the quality of the decision
Two routes for decision-making:
Reflective: Is logical, analytical, deliberate and methodical.
Reactive (reflexive): Is quick, impulsive, and intuitive. This relying on emotions or habits.
Neuropsychology says that the brain only uses one system at a time to process information.
Programmed and Nonprogrammed Decisions
Programmed Decisions
Are those that are repeated over time and for which a set of rules can be developed to guide the process
These decisions can be simple or quite complex
For programmed decisions, managers often develop heuristics, or mental shortcuts, to help reach a decision.
Programmed decisions are also referred to as routine or low-involvement decisions because they do not require deep mental processing to reach a decision.
Nonprogrammed Decisions
Nonprogrammed decisions are novel and unstructured decisions that are often based on criteria that are not well defined.
They are also sometimes referred to as non-routine or high-involvement decisions because they require greater involvement and reflection on the part of the decision-maker.
Nonprogrammed decisions present the greatest challenge.
since it is necessary to analyze whether it is worthwhile to adopt new methods.
