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CHAPTER 7. MAKING DECISIONS. MANAGEMENT IN ACTION: DECISION-MAKING. Defined as process of identifying problems/opportunities developing alternative solutions choosing a preferred alternative implementing the preferred alternative Decision-making Approaches programmed and nonprogrammed.
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CHAPTER 7 MAKING DECISIONS
MANAGEMENT IN ACTION: DECISION-MAKING • Defined as • process of • identifying problems/opportunities • developing alternative solutions • choosing a preferred alternative • implementing the preferred alternative • Decision-making Approaches • programmed and nonprogrammed
SEVEN-STEP DECISION-MAKING PROCESS • Define the Problem/Opportunity • treat the problem not the symptom • gap analysis/force field analysis/SWOT analysis • Identify Limiting Factors • Develop Potential Alternatives
SEVEN-STEP DECISION-MAKING PROCESS • Analyze the Alternatives • Select the Best Alternative • Implement the Alternative(s) Chosen • Establish a Control and Evaluation System
ENVIRONMENTAL IMPACTS ON DECISION-MAKING • Degree of Uncertainty • Imperfect Resources • Internal Environment • superiors/subordinates • organizational systems • External environment
MANAGERIAL STYLE AND DECISION-MAKING • Personal decision-making approaches • rational/logical approach • nonrational /intuitive approach • predisposed decision model • Prioritization and timing of decisions • Tunnel Vision and overcommitment to previous decisions • Creativity/Involvement of all constituencies
GROUP DECISION MAKING • Brainstorming • Nominal Group Technique • Delphi Method • Advantages and Disadvantages of group decisions
QUANTITATIVE DECISION-MAKING TOOLS • Decision trees • Payback analysis • Simulations