Decision Making Process PDF

PLANNING, DECISION MAKING, ORGANIZING, AND STAFFING Decision Making A decision is a choice made from available alternatives. SHORTER DEFINITIONS - The chosen alternative - The best option - The preference - The bias Decision making is a process of identifying problems, opportunities,...

PLANNING, DECISION MAKING, ORGANIZING, AND STAFFING Decision Making A decision is a choice made from available alternatives. SHORTER DEFINITIONS - The chosen alternative - The best option - The preference - The bias Decision making is a process of identifying problems, opportunities, and then resolving them. SHORTER DEFINITIONS Steps in spotting a problem, opportunities, and solutions. The manner of identifying problems, opportunities, and answering them. Management decisions typically fall into one of two categories: Programmed and Non-programmed. Programmed decisions are made in response to a situation that occurred often enough to enable managers to develop decision rules that can be applied in the future. SHORTER DEFINITIONS Programmed decisions are usual solutions for recurring problems. Programmed decisions predetermined choice for a frequent problems. Programmed decisions are preset solutions to regular problems. Programmed decisions are made in response to recurring organizational problems. ▪ Reorder point for office supplies ▪ Job specification for all job titles ▪ Policies on misdemeanors Nonprogrammed decisions Managers in every industry face nonprogrammed decisions every day. Many unprogrammed decisions, are related to strategic planning because uncertainty is great and decisions are complex. ▪ Develop new product or service ▪ Acquire a new company ▪ Create a new company / division ▪ Relocate to new city Nonprogrammed decisions Managers in every industry face nonprogrammed decisions every day. Many unprogrammed decisions, are related to strategic planning because uncertainty is great and decisions are complex. SHORTER DEFINITIONS ▪ Non-programmed decisions are strategic responses to complex problems. ▪ Non-programmed decisions are strategic programs and activities aimed to defeat competition. Nonprogrammed decisions One primary difference between programmed and nonprogrammed decisions relates to the degree of uncertainty, risk, or ambiguity that managers deal with in making the decision. INFORMATION AND FAILURE Every decision situation can be organized on a scale according to the availability of information and the possibility of failure. SHORTER DEFINITIONS Critical inputs and outputs of decision making. Facts used in decision making to avoid failure. Real and timely data related to decision making. CERTAINTY Certainty means that all the information the decision maker needs is fully available. SHORTER DEFINITION A decision based on needed and timely information. A decision with fully available information. A well researched decision. RISK Risk means that a decision has clear-cut goals and that good information is available, but the future outcomes associated with each alternative are subject to some chance of loss or failure. SHORTER DEFINITIONS Risk is a decision with clear-cut goals but with uncertain outcomes. Risk is a decision with uncontrollable outcomes. Risk is a decision with unsure results. UNCERTAINTY Uncertainty means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete. SHORTER DEFINITIONS Uncertainty pertains to alternatives with deficit information about their future. Uncertainty pertains to clear goals with unknown future. Uncertainty is about clear goals having unfamiliar prospects. AMBIGUITY Ambiguity means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable. SHORTER DEFINITIONS Ambiguity means uncertain goals and undefined outcomes. Ambiguity is having no clear goals and no clear possible solutions, and no clear outcomes. Good decision making is a vital part of good management, but decision making is not easy. SHORTER DEFINITION Good decision making is a part of management making unpopular decisions. Good decision making is taking timely and needed actions on complex problems and situation. Good decision making is deciding on unwanted decisions. Characteristics of Decision Making 1. Analytical Thinking – requires 5. Collaborative Efforts – it involves thoughtful consideration of facts colleagues in the process. and options available which aims to 6. Communication – requires eliminate biases. everyone is kept in the loop by 2. Strategic Plan – it is a providing timely updates on comprehensive plan that identifies progress. short and long-term objectives, 7. Commitment to Execution – to milestones, and actionable timeline. remain focus on every details but 3. Risk Assessment – assessment of open minded and willing to make potential hazards before reaching changes when necessary. any conclusion. 8. Reflection – thinking back the 4. Backup Plan – it includes alternative original goals and objectives, solutions, list of potential issues and whether or not they were met. answers. Case Study Analysis (A decision making process) https://www.youtube.com/watch?v=xxjksYiBNzc CASE STUDY ANALYSIS FORMAT Part of the statement of the problem is a 7-10 statements written in historical or social context. https://www.youtube.com/watch?v=xxjksYiBNzc VENDING BUSINESS A Case Study https://www.youtube.com/watc h?v=oHO0SznUms0 WORK FROM ANYWHERE, WFX A Case Study https://www.youtube.com/watch?v=5CpednVXGyE Strategic decisions set the course of an organization. Tactical/Managerial decisions are decisions about how things will get done. Finally, operational decisions refer to decisions that employees make each day to make the organization run. Sources: https://open.lib.umn.edu/principlesmanagement/chapter/11-3-unde rstanding-decision-making/ https://www.youtube.com/watch?v=Jg62oeEzMkU&t=14s