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Making DecisionsMultiMedia by           2002 South-
Decision Making is the Process of:                Identifying problems and                opportunities                Dev...
Programmed Decisions•• Involved problems or situations that have occurred often.    Involved problems or situations that h...
ProgrammedDecision   MultiMedia by   2002 South-
Non-Programmed Decisions•• Made in response to problems and opportunities that have    Made in response to problems and op...
The Decision-Making Process    MultiMedia by   2002 South-
The Decision-Making Process   MultiMedia by   2002 South-
The Decision-Making Process   MultiMedia by   2002 South-
The Decision-Making Process   MultiMedia by   2002 South-
The Decision-Making Process    MultiMedia by   2002 South-
The Decision-Making Process    MultiMedia by   2002 South-
The Decision-Making Process    MultiMedia by   2002 South-
Scan in Figure 7.4       The Funnel                                         Approach to                                   ...
Problem, Limiting Factors      Personnel      Personnel      Money      Money      Facilities      Facilities      ...
Alternatives Should           Eliminate the problem           Correct the problem           Neutralize the problem     ...
Analyzing AlternativesMultiMedia by             2002 South-
Implementing the Decision   •   Solutions need effective implementation.   •   Everyone must know:       – What he or she ...
A Control & Evaluating System Should Provide:  What the positive and negatives results are.  What adjustments are necess...
Degree of Ambiguity and          Potential for FailureMultiMedia by              2002 South-
Conditions of Certainty•    Manager has what is known as perfect knowledge.•    The decision has been made before.•    The...
Risk• A more complex environment.• The manager knows what the problem is and what the  alternatives are.• Cannot be sure o...
Uncertainty  •   Most difficult condition for a manager.  •   Exact outcomes cannot be determined.  •   May not be able to...
Ideal Resources   • Managers operate in an environment that normally     does not provide ideal resources such as:        ...
Factors that Influence Manager’s        Decision Making     •   Personal attributes     •   His or her decision-making app...
Brainstorming ElementsA half dozen to a dozen people are gathered in a comfortable settingfor a specified time, free from ...
Figure 7.10                                   Steps in the                                   Nominal Group                ...
Delphi Technique •   Provides a structure. •   Leads to consensus. •   Emphasizes equal participation. •   Participants ne...
Delphi Technique1.The problem is stated to a group of experts through  a questionnaire. Each person is asked to provide  s...
Group Decision-Making            Advantages• Brings a broader perspective to the decision-  making process.• Diversity bro...
Group Decision-Making               Disadvantages• Time-consuming  – The possibility the decision reached will be a     co...
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Ch07

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Transcript of "Ch07"

  1. 1. Making DecisionsMultiMedia by 2002 South-
  2. 2. Decision Making is the Process of: Identifying problems and opportunities Developing alternative solutions Choosing an alternative ImplementingMultiMedia by 2002 South-
  3. 3. Programmed Decisions•• Involved problems or situations that have occurred often. Involved problems or situations that have occurred often.•• Circumstances and solutions are predictable. Circumstances and solutions are predictable.•• Decisions are made in response to recurring organizational Decisions are made in response to recurring organizational problems. problems. MultiMedia by 2002 South-
  4. 4. ProgrammedDecision MultiMedia by 2002 South-
  5. 5. Non-Programmed Decisions•• Made in response to problems and opportunities that have Made in response to problems and opportunities that have unique circumstances. unique circumstances.•• May provide unpredictable results. May provide unpredictable results.•• Are often situations that have never occurred before. Are often situations that have never occurred before. MultiMedia by 2002 South-
  6. 6. The Decision-Making Process MultiMedia by 2002 South-
  7. 7. The Decision-Making Process MultiMedia by 2002 South-
  8. 8. The Decision-Making Process MultiMedia by 2002 South-
  9. 9. The Decision-Making Process MultiMedia by 2002 South-
  10. 10. The Decision-Making Process MultiMedia by 2002 South-
  11. 11. The Decision-Making Process MultiMedia by 2002 South-
  12. 12. The Decision-Making Process MultiMedia by 2002 South-
  13. 13. Scan in Figure 7.4 The Funnel Approach to Defining a ProblemMultiMedia by 2002 South-
  14. 14. Problem, Limiting Factors  Personnel  Personnel  Money  Money  Facilities  Facilities  Equipment  Equipment  Time  TimeMultiMedia by 2002 South-
  15. 15. Alternatives Should  Eliminate the problem  Correct the problem  Neutralize the problem  Maximize the opportunityMultiMedia by 2002 South-
  16. 16. Analyzing AlternativesMultiMedia by 2002 South-
  17. 17. Implementing the Decision • Solutions need effective implementation. • Everyone must know: – What he or she must do. – How to do it. – Why and when it must be done.MultiMedia by 2002 South-
  18. 18. A Control & Evaluating System Should Provide:  What the positive and negatives results are.  What adjustments are necessary.MultiMedia by 2002 South-
  19. 19. Degree of Ambiguity and Potential for FailureMultiMedia by 2002 South-
  20. 20. Conditions of Certainty• Manager has what is known as perfect knowledge.• The decision has been made before.• There are known alternatives.• Consequences are understood.• Ambiguity and fear of failure do not exist. MultiMedia by 2002 South-
  21. 21. Risk• A more complex environment.• The manager knows what the problem is and what the alternatives are.• Cannot be sure of the consequences of each alternative.• Ambiguity and risk are associated with each alternative. MultiMedia by 2002 South-
  22. 22. Uncertainty • Most difficult condition for a manager. • Exact outcomes cannot be determined. • May not be able to identify all alternatives. • High ambiguity and possibility for failure.MultiMedia by 2002 South-
  23. 23. Ideal Resources • Managers operate in an environment that normally does not provide ideal resources such as: Information Time Personnel Equipment SuppliesMultiMedia by 2002 South-
  24. 24. Factors that Influence Manager’s Decision Making • Personal attributes • His or her decision-making approach • Ability to set priorities • Timing of decisions • Tunnel vision • Commitments • Degree of creativityMultiMedia by 2002 South-
  25. 25. Brainstorming ElementsA half dozen to a dozen people are gathered in a comfortable settingfor a specified time, free from outside interruptions.Participants are given the problem or opportunity and told that noidea or suggestion is too ridiculous to be voiced.The facilitator encourages the free flow of ideas until all opinionshave been presented.A person acting as the designated scribe records the ideas on a chalkboard or flipchart.MultiMedia by 2002 South-
  26. 26. Figure 7.10 Steps in the Nominal Group TechniqueMultiMedia by 2002 South-
  27. 27. Delphi Technique • Provides a structure. • Leads to consensus. • Emphasizes equal participation. • Participants never meet. • Decision making is conducted by a group leader through written questionnaires.MultiMedia by 2002 South-
  28. 28. Delphi Technique1.The problem is stated to a group of experts through a questionnaire. Each person is asked to provide solutions. The experts do not interact.2.Each participant completes the questionnaire and returns it.3.A summary of opinions is developed from the answers received.4.The experts complete the second questionnaire.5.The process continues until the experts reach consensus.MultiMedia by 2002 South-
  29. 29. Group Decision-Making Advantages• Brings a broader perspective to the decision- making process.• Diversity broadens the views.• Provides the opportunity for discussion.• Reduces uncertainty. MultiMedia by 2002 South-
  30. 30. Group Decision-Making Disadvantages• Time-consuming – The possibility the decision reached will be a compromise.• Groupthink• Difficulty in taking the initiative.• No one person has responsibility for the decision. MultiMedia by 2002 South-
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