chapter9

chapter9 - 0 Managerial Decision Making CHAPTER 9 0...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Managerial Decision Making CHAPTER 9 0
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 Explain why decision making is an important component of  good management. Explain the difference between programmed and  nonprogrammed decisions and the decision characteristics of  risk, uncertainty, and ambiguity. Describe the classical, administrative, and political models of  decision making and their applications. Identify the six steps used in managerial decision making. 0
Background image of page 2
Learning Objectives  (contd.) Explain four personal decision styles used by managers. Discuss the advantages and disadvantages of participative  decision making. Identify techniques for improving decision making in today’s  turbulent environment. 0
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 and Decision Making Decision  -   choice made  from available alternatives Decision Making  -   process of identifying  problems and opportunities  and resolving them 0
Background image of page 4
Categories of Decisions Programmed Decisions Situations occurred often enough to enable  decision rules to be developed and applied in  the future Made in response to recurring organizational  problems Nonprogrammed Decisions   in response to unique, poorly defined and  largely unstructured, and have important  consequences to the organization 0
Background image of page 5

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

View Full DocumentRight Arrow Icon
Decisions and Decision Making Many decisions that managers deal with  every day involve at least some degree of  uncertainty and require nonprogrammed  decision making May be difficult to make Made amid changing factors Information may be unclear May have to deal with conflicting points of view 0
Background image of page 6
Difference Between Programmed and  Nonprogrammed Decisions o Certainty all the information the decision maker needs is fully available o Risk decision has clear-cut goals good information is available future outcomes associated with each alternative are subject to chance o Uncertainty managers know which goals they wish to achieve information about alternatives and future events is incomplete managers may have to come up with creative approaches to alternatives o Ambiguity by far the most difficult decision situation goals to be achieved or the problem to be solved is unclear alternatives are difficult to define information about outcomes is unavailable
Background image of page 7

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

View Full DocumentRight Arrow Icon
Conditions that Affect the Possibility of Decision  Failure Organizational Problem Problem Solution Low High Possibility of Failure Certainty Risk Uncertainty Ambiguity Programmed Decisions Nonprogrammed Decisions PepsiCo, Inc. serves consumers beverages and snack foods.
Background image of page 8
Selecting a Decision Making Model Depends on the manager’s personal  preference Whether the decision is programmed or non- programmed Extent to which the decision is characterized  by risk, uncertainty, or ambiguity
Background image of page 9

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

View Full DocumentRight Arrow Icon
Three Decision Making Models Classical Model Administrative Model Political Model
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 40

chapter9 - 0 Managerial Decision Making CHAPTER 9 0...

This preview shows document pages 1 - 11. Sign up to view the full document.

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