Chapter 10 - Chapter 10 Decision Making in Organizations...

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Chapter 10: Decision Making in Organizations Decision making the process of making choices from among several alternatives o One of the most important managerial activities o Represents one of the most common and most crucial work roles of executive decision making A General, Analytical Model of the Decision-Making Process A conceptualization of the eight steps through which individuals and groups making decisions o Identify the problem o Define objectives o Make a predecision o Generate alternatives o Evaluate alternatives o Make a choice o Implement choice o Follow up Highlights three important phases of decision-making o Formulation Process of understanding a problem o Consideration Process of determining and selecting a decision o Implementation Process of carrying out the decision made Decision Formulation Problem Identification To decide how to solve a problem, one must first recognize and identify it People often distort, omit, ignore, and/or discount info around them that provides cues regarding the existence of problems Denying a problem may be the first impediment to solving it Defining Objectives
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After a problem is identified, the next step is to define the objectives to be met in solving the problem Important to conceive a problem in such a way that possible solutions can be identified Making a Predecision Predecision A decision about what process to follow in making a decision By assessing the type of problem in question and other aspects of the situation, managers may opt to make decisions themselves or have another make a decision for them Decisions about how to make a decision should be based on research that tells us about the nature of the decisions made under different circumstances Decision support systems computer programs in which information about organizational behavior is presented to decision makes in a manner that helps them structure their responses to decisions o Effective in helping people make decisions about solving problems Decision Consideration Generating Alternatives Stage in which possible solutions are identified In attempting to come up with solutions o People tend to rely on previously used approaches that might provide ready-made answers for them Evaluating Alternative Solutions Of the alternatives, which one is the best? Various alternatives need to be identified Some may be more effective than others Some may be more difficult to implement than others Making a Choice After several alternatives are evaluated one that is considered acceptable is chosen Choosing which course of action to take is the step that most often comes to mind when we think about decision making
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Decision Implementation Implementing the Decision Carrying out the decision Following Up Monitoring the effectiveness of the decisions they put into action is important to the success of organizations Have any new problems been causes by implementing the solution?
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