The Application of Decision Making Theory
Learning objectives 1. Understand basic control processes in decision-making, and develop appropriate control systems to support specific strategies 2. Identify and evaluate appropriate performance measures to properly assess performance 3. Recognise the importance and the impact of effective information systems in supporting decisions concerning evaluation and control 4. Describe the determinants of decision success and understand the decision making matrix
2 Introduction
Text based sources for the Notes:
Wheelen and Hunger, Ch 11 (2010) Text Pages 367 - 393
In this module, we will focus on evaluating decisions. In doing so, we will reflect on the operational and strategic decision-making processes and, in relation to the latter, take a closer look at the ‘strategic gap’. We will examine the evaluation and control process within the decision-making process, with a particular focus on measures and steering controls.
Finally, we examine what Harrison has labelled as the determinants of strategic decision-making success, as well as his decision-making matrix.
3. Evaluative Frameworks
There are a range of frameworks that we can use to evaluate strategic and other decisions. These include the conventional operational decision making process for rational and bounded rational decisions (considered earlier in the course) and, for strategic decisions, the strategic gap and the strategic decision making process (considered in detail in the last module).
Later in this module, we will briefly explore two new frameworks. The first is Harrison’s “determinants of strategic success” and the second is Harrison’s “strategic decision matrix”
Before that time, however, we can reflect for a while on the conventional decision-making processes we have witnessed so far in the course (introduced to us in module three) eg the eight stage model and Harrison’s six stage model and we see that it is the last stage of each process that is dedicated to evaluative
2 Introduction
Text based sources for the Notes:
Wheelen and Hunger, Ch 11 (2010) Text Pages 367 - 393
In this module, we will focus on evaluating decisions. In doing so, we will reflect on the operational and strategic decision-making processes and, in relation to the latter, take a closer look at the ‘strategic gap’. We will examine the evaluation and control process within the decision-making process, with a particular focus on measures and steering controls.
Finally, we examine what Harrison has labelled as the determinants of strategic decision-making success, as well as his decision-making matrix.
3. Evaluative Frameworks
There are a range of frameworks that we can use to evaluate strategic and other decisions. These include the conventional operational decision making process for rational and bounded rational decisions (considered earlier in the course) and, for strategic decisions, the strategic gap and the strategic decision making process (considered in detail in the last module).
Later in this module, we will briefly explore two new frameworks. The first is Harrison’s “determinants of strategic success” and the second is Harrison’s “strategic decision matrix”
Before that time, however, we can reflect for a while on the conventional decision-making processes we have witnessed so far in the course (introduced to us in module three) eg the eight stage model and Harrison’s six stage model and we see that it is the last stage of each process that is dedicated to evaluative