chap06 - Chapter 6 DECISION MAKING: THE ESSENCE OF THE...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 6 DECISION MAKING: THE ESSENCE OF THE MANAGER’S JOB 6- 6- 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
Learning Objectives You should learn to: Outline the steps in the decision-making process Explain why decision making is so pervasive in organizations Describe the rational decision maker Contrast the perfectly rational and boundedly rational approaches to decision making Explain the role that intuition plays in the decision-making process 6- 6- 2
Background image of page 2
Learning Objectives (cont.) You should learn to: Identify the two types of decision problems and the two types of decisions that are used to solve them Differentiate the decision conditions of certainty, risk, and uncertainty Describe the different decision-making styles 6- 6- 3
Background image of page 3

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

View Full DocumentRight Arrow Icon
Decisions choices from two or more alternatives all organizational members make decisions Decision-Making Process a comprehensive, 8-step process Step 1 - Identifying a Problem problem - discrepancy between an existing and a desired state of affairs must be such that it exerts pressure to act manager is unlikely to characterize a situation as a problem unless s/he has resources necessary to act Decision Making 6- 6- 4
Background image of page 4
The Decision-Making Process Problem Identification “My salespeople need new computers Identification of Decision Criteria Price Weight Warranty Screen type Reliability Screen size 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 Analysis of Alternatives Acer Compaq Gateway HP Micromedia NEC Sony Toshiba Selection of an Alternative Acer Compaq Gateway HP Micromedia NEC Sony Toshiba 6- 6- 5
Background image of page 5

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

View Full DocumentRight Arrow Icon
Decision-Making Process (cont.) Step 2 - Identifying Decision Criteria decision criteria - what’s relevant in making a decision Step 3 - Allocating Weights to the Criteria must weight the criteria to give them appropriate priority in the decision Step 4 - Developing Alternatives
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/07/2010 for the course MBA 4701 taught by Professor Wasif during the Spring '10 term at Andhra University.

Page1 / 24

chap06 - Chapter 6 DECISION MAKING: THE ESSENCE OF THE...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online