Management
OVERVIEW OF THE CHAPTER
This chapter examines how managers make decisions and explores the complexities inherent in doing so. The six steps of the decision-making process are outlined and the advantages and disadvantages of group decision making are discussed. Also, how managers can promote organizational learning and creativity to improve the quality of decision making throughout an organization is explored. Finally, the role of both the entrepreneur and the intrapreneur are examined.
LEARNING OBJECTIVES
1. Differentiate between programmed and nonprogrammed decisions, and explain why nonprogrammed decision-making is a complex, uncertain process. (LO1)
2. Describe the six steps that managers should take to make the best decisions. (LO2)
3. Identify the advantages and disadvantages of group decision-making, and describe techniques that can improve it. (LO3)
4. Explain the role that organizational learning and creativity play in helping managers to improve their decisions. (LO4)
5. Describe how managers can encourage and promote entrepreneurship to create a learning organization and differentiate between entrepreneurs and intrapreneurs. (LO5)
MANAGEMENT SNAPSHOT: DECISION MAKING AND LEARNING ARE THE KEY TO ENTREPRENEURIAL PROCESS
Marc Shuman is the founder and president of GarageTek, a company that designs and installs custom garage systems to organize and maximize storage capacity in home garages. Decision making has been an ongoing challenge for him. Favorable environmental conditions led him to believe that consumer demand existed for his product. He later decided to franchise his idea and within three years, GarageTek had 57 franchises in 33 states. However, Shuman faced another tough decision when he realized that some of the franchises were failing. Although his franchise agreement gave him the right to close them, he decided to give the troubled franchisees six months to get back on their feet. Shuman learned
This chapter examines how managers make decisions and explores the complexities inherent in doing so. The six steps of the decision-making process are outlined and the advantages and disadvantages of group decision making are discussed. Also, how managers can promote organizational learning and creativity to improve the quality of decision making throughout an organization is explored. Finally, the role of both the entrepreneur and the intrapreneur are examined.
LEARNING OBJECTIVES
1. Differentiate between programmed and nonprogrammed decisions, and explain why nonprogrammed decision-making is a complex, uncertain process. (LO1)
2. Describe the six steps that managers should take to make the best decisions. (LO2)
3. Identify the advantages and disadvantages of group decision-making, and describe techniques that can improve it. (LO3)
4. Explain the role that organizational learning and creativity play in helping managers to improve their decisions. (LO4)
5. Describe how managers can encourage and promote entrepreneurship to create a learning organization and differentiate between entrepreneurs and intrapreneurs. (LO5)
MANAGEMENT SNAPSHOT: DECISION MAKING AND LEARNING ARE THE KEY TO ENTREPRENEURIAL PROCESS
Marc Shuman is the founder and president of GarageTek, a company that designs and installs custom garage systems to organize and maximize storage capacity in home garages. Decision making has been an ongoing challenge for him. Favorable environmental conditions led him to believe that consumer demand existed for his product. He later decided to franchise his idea and within three years, GarageTek had 57 franchises in 33 states. However, Shuman faced another tough decision when he realized that some of the franchises were failing. Although his franchise agreement gave him the right to close them, he decided to give the troubled franchisees six months to get back on their feet. Shuman learned