MNGT 361 CH. 3 Foundations of Decision Making
MNGT 361 CH. 3 Foundations of Decision Making MNGT 361
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This 3 page Class Notes was uploaded by Angela Potter on Thursday February 18, 2016. The Class Notes belongs to MNGT 361 at Towson University taught by Donald McCulloh in Spring 2016. Since its upload, it has received 13 views. For similar materials see Leadership and Management in Business, management at Towson University.
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Date Created: 02/18/16
MNGT 361 Chapter 3: Foundations of Decision Making The decision making process Identification of a problem (Need a New Car) Problem: a discrepancy between an existing and a desired state of affairs true Identification of a decision criteria price model size manufacturer options repair record Allocation of weights of criteria 1. Most important criterion assigned a weight of 10 2. Other weights assigned against this standard Analysis of alternatives what other types of cars you may want Selection of an alternative choosing the best alternatives with the weighted facts Implementation of the alternative Decision implementation: putting a decision into action Evaluation of decision effectiveness was the problem resolved? Three Approaches Used to Make Decisions: Types of Decision Planing Organizing Leading Controlling Rational Model Rational Decision Making choices that are consistent and valuemaximizing within specified constraints Types of Decisions and DecisionMaking conditions that managers face Types of Problems Structured problem Unstructured problem Types of Decisions Programmed Repetitive decisions that can be handled using a routine approach Nonprogrammed Repetitive decisions that can't be handled using a routine approach Decision Making Conditions Certainty Risk Uncertainty Group Decision Making Decisions are often made by groups representing the people who will be most affected by those decisions Committees Task Forces Review Panels Work teams Advantages of Group Decision Making More complete information Diversity of experiences/ perspectives More alternatives generated Increased acceptance of solution Increased legitimacy Disadvantages of Group Decision Making Time consuming Minority Domination Ambiguous responsibility Pressure to conform Groupthink When a group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement When are Groups Most Effective? Individual Faster decision making More efficient use of work hours Group More accurate decisions More creative More heterogenous representation Greater acceptance of final solution Improving Group Decision Making Make group decisions more creative by: Brainstorming The nominal group technique Electronic meetings Contemporary issues in Managerial Decision Making National Culture influences the way decision are made and the degree of risk involved Creativity Lets the decision maker: Understand a problem more fully See problems others cant Identity all viable alternatives Design thinking approaching management problems ad designers approach design problems Big Data The vast amounts of quantifiable information that can be analyzed by highly sophisticated data processing
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