The document discusses managerial decision making. It describes decision making as a process that managers go through to select actions to achieve organizational goals. The key aspects of the decision making process discussed are: identifying problems and criteria, developing alternatives, analyzing alternatives, selecting an alternative, implementing the decision, and evaluating the effectiveness. Rational and intuitive approaches to decision making are described, as are different decision styles. The document emphasizes that managers must make decisions carefully and consider the situation.

1. Presented by
STOCKHOLDERS GROUP

2. INTRODUCTION
 Decision made by a manager. Manager is a
person who work with or without going trought
other people by coordinating their activities in
order to achieve the goals and objectives of the
organization
 Decision making is in the selection of
alternative management actions to achieve
goal. A managerial decision is measure of the
effectiveness of the manager. The decision
making process is how behavior and patterns of
human communication as individuals and
members of the group in the organizational
structure.

3.  Identify
the problem (the gap between real and
expected state)
 Identify decision criteria
 Allocation criteria weights
 Preparation of alternative
 Alternative Analysis
 Selection of alternative
 Implementation of the selected alternative
 Evaluate the effectiveness of decision

4. Problem
Identification
“My salespeople
need new computers”
Analysis of
Alternatives
a
Acer
Compaq
Gateway
HP
Micromedia
NEC
Sony
Toshiba
© Prentice Hall, 2002
Identification of
Decision Criteria
Price
Weight
Warranty
Screen type
Reliability
Screen size
Selection of an
Alternative
Acer
Compaq
Gateway
HP
Micromedia
NEC
Sony
Toshiba
Allocation of
Weights to
Criteria
Reliability 10
Screen size 8
Warranty
5
Weight
5
Price
4
Screen type 3
Development of
Alternatives
Acer
Compaq
Gateway
HP
Micromedia
NEC
Sony
Toshiba
Implementation
of an Alternative
Gateway
Evaluation
of Decision
Effectiveness
6-4

5. 1.




Plan:
What long-term goals of the organization?
Where is the best way to achieve those purposes?
What should the short-term goals of the organization?
How big is the effort to achieve the target in
organization.
2. Organize:
 How many subordinates who must report to me
directly
 How much centralization should exist within the
organization
 How should the design of office
 when the organization should adopt a different
structure

6. 3. Leads:
 How to deal with depression employee motivation?
 Which are the most effective leadership style in
certain situations?
 How will the changes can affect worker
productivity?
 When is the right time to resolve the conflict
4. Controls:
 Which activities should be controlled?
 How to control these activities?
 When the performance was large deviation mean?
 Which type of management information systems
that must be owned by the organization?

7.  Everyone
in the organization make decisions, but
the main decision maker in the organization is a
manager.
 Make
decisions that can be done through two (2)
approaches, namely:
1. Rational = objective and logical
2. Intuition = subconscious decision-making
process based on the experience and
the considerations that have been
collected.

8. Single, welldefined goal
is to be achieved
All alternatives
and
consequences
are known
Preferences
are clear
Preferences
are constant
and stable
© Prentice Hall, 2002
Problem is
clear and
unambiguous
Rational
Decision
Making
Final choice
will maximize
payoff
No time or cost
constraints exist
6-8

9. Decisions based
on ethical values
or culture
Values or
ethics-based
decisions
Subconscious
mental
processing
Decisions based
on subconscious
data
© Prentice Hall, 2002
Decisions based
on experience
Experiencedbased decisions
Intuition
Decisions based
on feelings and
emotions
Affectinitiated
decisions
Cognitivebased
decisions
Decisions based
on skills,
knowledge,
or training
6-9

10.  Decision
style = style and decision makers will
vary depending on the dimensions the way of
thinking (rationality and logic) and one's
tolerance of ambiguity.
1. Directing style
2. Analytical style
3. Conceptual style
4. Behavioral style

11. Tolerance for Ambiguity
High
Analytic
Conceptual
Directive
Behavioral
Low
Rational
Way of Thinking
© Prentice Hall, 2002
Intuitive
6-11

12.  Sometimes,
in the narrow situation the
manager cans make a decision with the
authority to expedite the implementation of
a program. This was done after the manager
was thinking which one is better and more
appropriate to decide so it does not cause a
big chaos in the organization.
 Thus,
caution is needed, the process and
some types of approaches in order to take
decisions properly.

13. Gibson, James L, Ivancevich, John M, Donelly Jr,
James H (2000), Organizations , Behavior,
Structure, Processes, 10th Edition, Irwin Mc. Graw
Hill, USA.
Robbins, Stephen P (2008), Organizational Behavior,
Concept, and Aplication, 12th Edition, Prentice
Hall, USA.
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