MAN 320F Exam 2 - CH 6 Rational Decision Making...

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CH 6 Rational Decision Making Model -(unrealistic ) Identify problem, Identify Decision Criteria, Allocate Weights, Develop Alternatives, Analyze Alternatives, Select –Implement Alternatives, Evaluate. Assumptions- Problem clarity, known options, clear/constant preferences, no time/cost constraints, max.payoff, sufficient creativity. Bounded Decisions- decisions are limited by ability to process info. Decisions are satisfactory. Intuition – decisions made on gut feelings, (experience, emotions, skills/knowledge, subconscious, values) 1/3 of managers use this. Structured Problem- clear goals, familiar, easily defined. Programmed Decision- repetitive/routine approach, low level man. (Policy -general guideline to make a decision, Procedure -series of steps used to respond, applying policy, Rule -explicit statement limits dos/donts). Unstructured Prob.- new/unusual, info is incomplete/ambiguous, require custom decisions. Nonprogram. Decision- top level man. unique/nonrecurring, custom made response. Certainty- ideal situation, man. Can make accurate decisions, outcomes are known. Risk- common situation, man. Estimates probability of outcome. Uncertainty- limited info prevents estimations, forces intuition/gut feelings. Maximax- optimistic, maximize max. payoff. Maximin – pessimist, maximize min. payoff. Individual Dimensions- Thinking (rational, orderly, consistent -- intuitive, creative, unique) Tolerance for Ambiguity (LOW requires consistency/order –HI requires multiple thoughts) Decision Styles Model: Directive = efficient/logical, low tolerance (fast, min. info, few alternatives, focus on short term) Analytic- hi tolerance/rational, careful decision maker, +info/alternates, able to adapt/cope, long term Conceptual- hi tolerance/intuitive, +alternates, focus long term, creative. Behavioral- low tolerance, intuitive, work well w/ others, try to avoid conflict. 5 Habits HROs- not tricked by success, defer to experts, unexpected circumstance=solutions, embrace complexity, anticipate (limits) Effective Decisions- importance, logical/consistent, subjective/objective & analytical/intuitive thinking, clear/reliable/flexible, only info that’s needed, encourages relevant info/informed opinion. Ch 7 Planning- Primary mangr. Activity, define goals, establish strategy, develop plans to work: WHY? Provides direction, reduces uncertainty, minimizes waste/redundancy, increases efficiency, sets standards. Informal Plan: unwritten, short term focus, specific to a unit. Formal: written, specific, long term, organizational goals. Types of Plans: Breadth: strategic/operational. Time Frame: long/short term. Specificity: directional/specific. Frequency: Single use/standing Plan/Performance: Formal plan= higher profits/return of assets, positive financial results. Quality of Quantity! External environment can reduce impact of planning on performance, planning takes several years to affect performance. Plan Elements: Mission/Vision- who you are/want to be, Goals/Objectives- desired outcomes provide direction, Plans- Outline goals use of resources and activitites
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This note was uploaded on 02/09/2009 for the course MAN 320 taught by Professor Passovoy during the Spring '08 term at University of Texas at Austin.

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MAN 320F Exam 2 - CH 6 Rational Decision Making...

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