Chapter 6 Notes.pdf

Info icon This preview shows pages 1–3. Sign up to view the full content.

Chapter 6: Managers as Decision Makers The Decision-Making Process Managers at all levels and in all areas of organizations make decisions, or choices. Top-level managers: Organization’s goals Where to locate manufacturing facilities What new markets to move into Middle- and Lower-level managers: Production schedules Product quality problems Pay raises Employee discipline Describing decision making as choosing between alternatives is too simplistic because it is a process, not just a simple act of choosing among alternatives. Step 1: Identifying the Problem Every Decision starts with a Problem, a gap between an existing and desired condition. Managers have to be cautious not to confuse between problems and symptoms of problems Problem identification is subjective Effectively identifying problems is important but not easy. Step 2: Identifying Decision Criteria Identify the decision criteria that are important or relevant to resolve the problem Every decision maker has criteria that guide his/her decisions, even if they are not explicitly stated. Step 3: Allocating Weights to the Criteria If the relevant criteria are not equally important, the decision maker must weigh the items in order to give them the correct priority in the decision. Give the most important criterion a weight of 10 and then assign weights to the rest using that standard. Step 4: Developing Alternatives List the alternatives that could work to solve the problem. This step is where decision maker should be creative. Alternatives are only listed, and not evaluated.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Step 5: Analyzing Alternatives Decision maker must evaluate each alternative by using the criteria. These represent the assessment of the alternatives using the decision criteria but not the weighting. When you multiply each alternative by the assigned weight, you get the weighted alternatives. The total score for each alternative is the sum of its weighted criteria. There are some times when a decision maker might not have to do this step: If one alternative scored highest on every criterion, you would not need to consider the weights because that alternative is already the top choice. If the weights were all equal, you could evaluate an alternative by merely summing up the assessed values for them all. Step 6: Selecting an Alternative Choosing the best alternative or the one that the generated the highest total in step 5 Step 7: Implementing the Alternative Put the decision into action by communicating it to those affected and getting their commitment to it. We know that if the people who must implement a decision participate in the process, they are most likely to support it than if you just tell them what to do.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern