Please enable JavaScript.
Coggle requires JavaScript to display documents.
Managerial Decision Making - Coggle Diagram
Managerial Decision Making
Decision is a choice made from available alternatives
Types of Decisions and Problems
Programmed Decisions
Recurring problems
Apply rule
Nonprogrammed Decisions
Unique situations
Poorly defined
Unstructured
Important consequences
Conditions that Affect the Possibility of Decision Failure
Certainty
Situation in which all information is fully available
Programmed Decisions
Risk
Future outcomes associated with an alternative are subject to chance
Uncertainty
Depends on the amount and value of information available
Ambiguity
Making decisions in difficult situations
Nonprogrammed Decisions
Decision-Making Models
Classical model
Clear-cut problem and goals
Condition of certainty
Full information about alternatives and their outcomes
Rational choice by individual for maximizing outcomes
Administrative model
Vague problem and goals
Condition of uncertainty
Limited information about alternatives and their outcomes
Satisficing choice for resolving problem using intuition
Political model
Pluralistic; conflicting goals
Condition of uncertainty or ambiguity
Inconsistent viewpoints; ambiguous information
Bargaining and discussion among coalition members
Decision-Making Steps
Recognition of Decision Requirement
Diagnosis and Analysis
Develop Alternatives
Selection of Desired Alternative
Implementation of Chosen Alternative
Evaluation and Feedback
Personal Decision Framework
Situation
Nonprogrammed/ Programmed
Classical, Administrative, and Political
Decision Steps
Personal decision style
Directive style
Analytic style
Conceptual style
Behavioral style