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Unformatted text preview: This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. Chapter 9 Managerial Decision Making Chapter Outline I. Types of Decisions and Problems A. Programmed and Nonprogrammed Decisions B. Certainty, Risk, Uncertainty, and Ambiguity II. Decision Making Models A. Classical Model B. Administrative Model C. Political Model III. Decision Making Steps A. Recognition of Decision Requirement B. Diagnosis and Analysis of Causes C. Development of Alternatives D. Selection of Desired Alternative E. Implementation of Chosen Alternative F. Evaluation and Feedback IV. Personal Decision Framework V. Increasing Participation in Decision Making A. Vroom-Jago Model B. New Decision Approaches for the Turbulent Times Annotated Learning Objectives After studying this chapter, students should be able to: 1. Explain why decision-making is an important component of good management . Every organization grows, prospers, or fails as a result of decisions by its managers. Managers are often referred to as decision makers. Good decision-making is a vital part of good management. Decisions determine how the organization solves its problems, allocates resources, and accomplishes its objectives. Decision-making is not easy. It must be done amid ever-changing factors, unclear information, and conflicting points of view. Plans and strategies are arrived at through decision-making. The better the decision making, the better the strategic planning. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 222 PART 3 Planning 2. Explain the difference between programmed and nonprogrammed decisions and the decision characteristics of risk, uncertainty, and ambiguity . A decision is a choice made from available alternatives. Decision-making is the process of identifying problems and opportunities and then resolving them. Decision-making involves effort both before and after the actual choice. Management decisions typically are either programmed decisions or nonprogrammed decisions. Programmed decisions involve situations that have occurred often enough to enable decision rules to be developed and applied in the future. Once managers formulate decision rules, subordinates and others can make the decision, freeing managers for other tasks. Nonprogrammed decisions are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization. Many nonprogrammed decisions involve strategic planning because uncertainty is great and decisions are complex....
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This note was uploaded on 03/22/2009 for the course MANAGEMENT 5689-9856 taught by Professor Nialamnu during the Fall '08 term at Indiana State University .
- Fall '08