week4_DecisionMaking

Week4_DecisionMaking - Week4DecisionMaking 1 8stepProcess 1. 2. 3. 4. 5. 6. 7.

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1   Principles of Management Week 4 – Decision Making
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2 Rational Decision Making  8-step Process 1. Identification of problem 2. Identification of Decision Criteria 3. Allocation of weights to criteria 4. Development of alternatives 5. Analysis of alternatives 6. Decide on an alternative 7. Implementation of decision 8. Evaluation of decision
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3 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 R S W W P S Acer 4 3 4 3 2 6 Compaq 3 4 5 2 6 7 Gateway 9 6 7 7 8 2 HP 3 5 6 7 6 5 Micromedia 2 2 3 4 5 4 NEC 3 4 5 6 7 2 Sony 7 5 6 4 2 8 Toshiba 3 4 5 6 7 3 Selection of an Alternative Acer 125 Compaq 142 Gateway 246 HP 174 Micromedia 103 NEC 151 Sony 192 Toshiba 154
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4 Decisions in the Management Functions
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5 About Rational Decision  Making Is it always possible to  make rational decisions?
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6 Rational Decision Making Problem is clear and unambiguous Single, well- defined goal is to be achieved All alternatives and consequences are known Preferences are clear Preferences are constant and stable No time or cost constraints exist Final choice will maximize payoff
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This note was uploaded on 04/18/2011 for the course BUSI 1007 taught by Professor Liu during the Spring '09 term at HKU.

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Week4_DecisionMaking - Week4DecisionMaking 1 8stepProcess 1. 2. 3. 4. 5. 6. 7.

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