The Decision-Making Process

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Decision A choice from two or more alternative

A choice from two or more alternative

Decision-Making Process A set of eight steps including identifying a problem, selecting an alternative, and evaluating the decision’s effectiveness

A set of eight steps including identifying a problem, selecting an alternative, and evaluating the decision’s effectiveness

Problem A discrepancy between an existing and a desired state of affairs

A discrepancy between an existing and a desired state of affairs

The Decision-Making Process Identification of a Problem Identification of Decision Criteria Allocation of Weights to Criteria Development of Alternatives Analysis of Alternatives Selection of an Alternatives Implementation of the Alternatives Evaluation of Decision Effectiveness

Making Decisions: Rationally rational decision-making: Describe choices that are consistent and value maximizing within specified constraints.

rational decision-making:

Describe choices that are consistent and value maximizing within specified constraints.

Making Decisions: Bounded Rationality bounded rationality decision-making: Behavior that is rational within the parameters of a simplified decision-making process, which is limited (or bounded) by an individual’s ability to process information.

bounded rationality decision-making:

Behavior that is rational within the parameters of a simplified decision-making process, which is limited (or bounded) by an individual’s ability to process information.

Making Decisions intuition decision-making: a subconscious process of making decision on the basis of experience and accumulated judgment.

intuition decision-making:

a subconscious process of making decision on the basis of experience and accumulated judgment.

Decision Making Styles Directive Style A decision making style characterized by low tolerance for ambiguity and a rational way of thinking. They’re efficient and logical Directive types makes fast decisions and focus on the short run

Directive Style

A decision making style characterized by low tolerance for ambiguity and a rational way of thinking.

They’re efficient and logical

Directive types makes fast decisions and focus on the short run

Decision Making Styles Analytical Style A decision making style characterized by a high tolerance a high tolerance ambiguity and a rational way of thinking. They want more information before making decision and consider more alternatives

Analytical Style

A decision making style characterized by a high tolerance a high tolerance ambiguity and a rational way of thinking.

They want more information before making decision and consider more alternatives

Decision Making Styles Conceptual Style A decision making style characterized by a high tolerance for ambiguity and an intuitive way of thinking. Very broad in the their outlook and will look at many alternatives They focus on the long run and very good at finding creative solutions to problem

Conceptual Style

A decision making style characterized by a high tolerance for ambiguity and an intuitive way of thinking.

Very broad in the their outlook and will look at many alternatives

They focus on the long run and very good at finding creative solutions to problem

Decision Making Styles Behavioral Style A decision making style characterized by a high tolerance a low tolerance ambiguity and an intuitive way of thinking. They’re concerned about the achievements of subordinates and are receptive to suggestion from others

Behavioral Style

A decision making style characterized by a high tolerance a low tolerance ambiguity and an intuitive way of thinking.

They’re concerned about the achievements of subordinates and are receptive to suggestion from others

Overview of Managerial Decision Making Decision Making Approach Rationality Bounded Rationality Intuition Decision Making Styles Directive Analytical Conceptual Behavioral Decision Choosing best alternative Implementing Evaluating Types of Problems and Decisions Well structured-programmed Poorly structured-non programmed Decision Making Conditions Certainty Risk Uncertainty Decision Making Process

Decision Making Approach

Rationality

Bounded Rationality

Intuition

Decision Making Styles

Directive

Analytical

Conceptual

Behavioral

Decision

Choosing best alternative

Implementing

Evaluating

Types of Problems and Decisions

Well structured-programmed

Poorly structured-non programmed

Decision Making Conditions

Certainty

Risk

Uncertainty

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