decision making
Contents
INTRODUCTION 4
DECISION MAKING 4
Programmed Decisions 4
Non-Programmed Decisions 5
THE RESPONSIBILITY FOR MAKING DECISIONS 5
ELEMENTS OF THE DECISION SITUATION 6
- The Decision Maker 6
- Goals to be Served 6
- Relevant Alternatives 6
- Ordering of Alternatives 6
- Choice of Alternatives. 6
THE RATIONAL MODEL OF DECISION MAKING 8
Steps in the Decision Making process 8
Identifying an Existing Problem 9
Listing Alternative Solutions 10
Select the Most Beneficial Of These Alternatives 11
Implement the Selected Alternative 11
Gathering Problem-Related Feedback 12
BOUNDED RATIONALITY 12
DECISION MAKING AND INTUITION 13
What is Intuition - What is Intuitive Decision Making? 14
How Intuition can influence decision making by managers 14
PROBABILITY THEORY 16
An Intuitive Approach 16
RELEVANCE OF PROBABILITY THEORY 17
Investment Problem 17
Introducing a New Product 18
GROUP DECISION MAKING 18
Identification of several alternatives 19
Knowledge sharing by cross-functional teams 19
Implementation effectiveness 19
More acceptance of decision 20
Piggybacking 20
Domination by team members 20
Time Consuming 21
Free Riders 21
Group Think 21
Group Decision Making Process 21
Nominal Group Technique 22
Delphi Technique 23
EVALUATING GROUP DECISION MAKING PROCESSES 23
What is Risk? 23
Strategic risks 24
Financial risks 24
Legal risks 24
Certainty 25
Uncertainty 25
CONCLUSION 26
REFERENCE 27 BIBLIOGRAPHY …………………………………………………….………………………………………………............................. 28
INTRODUCTION
Whether we realize it or not, decision-making is a part of our daily lives. Everyday there are decisions to be made. Some of those decisions are minor and some of them are life changing. Some of the decision that has to be made is oftentimes obvious and straightforward, while others have to be critically analyzed to arrive at the best alternative.
In a similar way organizations must make decisions on a daily basis.
INTRODUCTION 4
DECISION MAKING 4
Programmed Decisions 4
Non-Programmed Decisions 5
THE RESPONSIBILITY FOR MAKING DECISIONS 5
ELEMENTS OF THE DECISION SITUATION 6
- The Decision Maker 6
- Goals to be Served 6
- Relevant Alternatives 6
- Ordering of Alternatives 6
- Choice of Alternatives. 6
THE RATIONAL MODEL OF DECISION MAKING 8
Steps in the Decision Making process 8
Identifying an Existing Problem 9
Listing Alternative Solutions 10
Select the Most Beneficial Of These Alternatives 11
Implement the Selected Alternative 11
Gathering Problem-Related Feedback 12
BOUNDED RATIONALITY 12
DECISION MAKING AND INTUITION 13
What is Intuition - What is Intuitive Decision Making? 14
How Intuition can influence decision making by managers 14
PROBABILITY THEORY 16
An Intuitive Approach 16
RELEVANCE OF PROBABILITY THEORY 17
Investment Problem 17
Introducing a New Product 18
GROUP DECISION MAKING 18
Identification of several alternatives 19
Knowledge sharing by cross-functional teams 19
Implementation effectiveness 19
More acceptance of decision 20
Piggybacking 20
Domination by team members 20
Time Consuming 21
Free Riders 21
Group Think 21
Group Decision Making Process 21
Nominal Group Technique 22
Delphi Technique 23
EVALUATING GROUP DECISION MAKING PROCESSES 23
What is Risk? 23
Strategic risks 24
Financial risks 24
Legal risks 24
Certainty 25
Uncertainty 25
CONCLUSION 26
REFERENCE 27 BIBLIOGRAPHY …………………………………………………….………………………………………………............................. 28
INTRODUCTION
Whether we realize it or not, decision-making is a part of our daily lives. Everyday there are decisions to be made. Some of those decisions are minor and some of them are life changing. Some of the decision that has to be made is oftentimes obvious and straightforward, while others have to be critically analyzed to arrive at the best alternative.
In a similar way organizations must make decisions on a daily basis.
Bibliography: DECISION MAKING A decision is a choice made between two or more available alternatives (Certo, 2012). ELEMENTS OF THE DECISION SITUATION There are five elements in the Decision Situation, these elements are very important in the decision making process (Certo, 2012)