Chapter 10- Decision Making by Individ

Chapter 10- Decision Making by Individ - Chapter 10...

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Chapter 10 Decision Making by Individuals and Groups
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The Decision-Making Process – 2 Basic Types of Decisions Programmed Decision – a simple, routine matter for which a manager has an established decision rule Nonprogrammed Decision – a new, complex decision that requires a creative solution
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The Decision- Making Process Identify the problem and the need for a decision Gather and evaluate data and diagnose the situation Identify the objective of the decision List and evaluate alternatives
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The Decision- Making Process (continued) Select the best course of action Gather feedback Implement the decision Follow up
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Models of Decision Making The objective of any decision making process is to come up with and implement an effective decision – i.e. one that is timely meeting the desired objectives and is acceptable to those individuals affected by it (stake holders). There are several models for decision making including: Rational Model Bounded Rationality Model Garbage Can Model
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This model is based on rationality and is a logical, step- by-step approach to decision making with a thorough analysis of alternatives and their consequences. The model makes several assumptions: 1. The outcome will be completely rational 2. The decision maker uses a consistent system of preferences to choose the best alternative 3. The decision maker is aware of all alternatives 4. The decision maker can calculate the probability of success for each alternative Rational Model
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Bounded Rationality – a theory that suggests that there are limits upon how rational a decision maker can actually be bounded by constraints on time, financial concerns, and cognitive abilities or limitations. Bounded Rationality Model
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Bounded Rationality Model (continued) Several assumptions include that managers: suggest and accept the first satisfactory or “good
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This note was uploaded on 04/23/2008 for the course OS 286 taught by Professor Ormsby during the Fall '08 term at Clarkson University .

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Chapter 10- Decision Making by Individ - Chapter 10...

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