Chapter 4 Notes.pdf

 Outcomes Learning ① Explain why , decision making is an important component of...

 Outcomes Learning ① Explain why , decision making is an important component of good management ② Compare and contrast programmed and nonprogrammed decisions and describe the decision characteristics of certainty and uncertainty ③ Compare the models of decision making ① Describe the four personal decision styles used by managers ⑪) Decision making is the process of identifying problems and opportunities , and resolving them. how to solve : Not Etc enough employees , to utilize New technology , how ② Decision is a choice made from available alternatives Programmed Decisions Nonprogrammed Decisions > Recurring problems : Situation which has occurred > Respond to unique poorly defined , largely unstructured - - , often enough to enable decision rules to be developed situations , and has important consequences for the > - Apply rules in the future organization * Etc : Run out of stock A , contact supplier A > Uncertain outcome -  and Facing Certainty Uncertainty ① Certainty : Situation in which all information is fully available Etc : Run out of stock , buy new stock Information about and > supplier A supplier B - Outcome : Supplier A sends in stock/Supplier B is more expensive ② Risk : Clear-cut goals , information is available, but future outcomes are subject to chance Closs/failure) * Goal open: a new branch Alternatives : Location A university students/Location B working adults Outcome : Chance ③ Uncertainty Managers : know which goals they wanna achieve, but information about alternatives and future events is incomplete Goal : Develop new product Alternatives : No different features suggestions on Outcome : Chance ⑦ Ambiguity : Goals or problem is unclear, alternatives are difficult to define , information about outcomes is unavailable Etc : COVID-19 pandemic strucks uncertainty?I Models Decision-Making (Remember certainty and > - Three types approaches of to choose when they are making decisions > - Choice of model depends on manager's personal preference, whether the decision is programmed or not, and degree of uncertainty Classical Model > -Clear-cut problem and goals (Run out of stock, buy from supplier) > - Condition of certainty Political Model Full information about alternatives and its outcomes > > Pluralistic; conflicting goals - As > - Rational choice by individual to maximize outcomes (Employee goal conflicts Employee B) choice) Condition of (collect complete information to make the best > uncertainty or ambiguity - Inconsistent and > viewpoints ambiguous - Administrative Model information and > - Vague problem goals (new location for new branch) Bargaining and discussion among Condition of coalition members > uncertainty - > - Limited information about alternatives and outcomes choice for > - Satisficing resolving problem using intuition (good enough choice)  Decision-Making Steps O Recognition of Decision Requirement Managers confront decision requirement in the form of either a a problem or an opportunity Etc : utilize new technology to save money/increase profit ② Diagnosis and Analysis Analyze underlying causal factors Etc : Low sales? Maybe employees don't know how to be sale/bad economy ③ Develop Alternatives Define feasible alternatives ⑦ Selection of Desired Alternative Alternative with most desirable outcome (rational choice/ satisficing choice) ⑤ Implementation of Chosen Alternative Use of abilities to execute (4 management functions) management persuasive ⑥ Evaluation and Feedback Gather information about effectiveness (can we achieve for next time)  Personal Decision Framework ① Directive Style prefer simple clear-cut solutions to · , problems ② Analytical Style facts and numbers - consider solutions based much data · complex on as as they can gather ③ Conceptual Style broad range of information from both system and · consider a people · brainstorming of alternatives , creative approaches to problem solving and taking higher risks (meeting - collect opinions) ④ Behavioral Style · adopted by managers having a deep concern for others talk to and understand their making people feelings about the situation before decision · a Different have different managers decision-making styles  Why Do Managers Make Bad Decisions? D Influenced by initial impressions Q Justifying past decisions B See what you want to see bad , but show others (think from etc : economy is one perspective) past decisions are correct ① Perpetuating the status quo ⑤ Influenced by emotions G Overconfidence. maintain etc present , doesn't want to improve Innovative Decision-Making O Start with brainstorming - free discussion ② Use hard evidence-reports , research ③ Engage in rigorous debate - improve solution ⑪ Avoid groupthink - avoid agreeing on everything on the surface by following others ⑤ Know when to bail- halt if direction is wrong ⑥ Do a postmortem - experience , mistakes learned