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1、management,presentation,As we know,all of us must make decisions whoever you are.Even you are or orOr just like,Of course,everyone would like to make good decisions since you are judged on the outcomes of these decisions.Decision making seems so easy,but it is a really hard work.So how to make good
2、decisions?(manager for example),What is decision making?Decision:a choice from two or more alternatives.All organizational members make decisions that affect their jobs and the organization they work for.How managers make decisions?Typically described as choosing among alternatives.There eight steps
3、 in the decision-making process,Lets use an example-a manager deciding what laptop computer to purchase-to illustrate the steps in the process.,Step1:identifying a problem,Every decision starts with a problem:an obstacle that makes achieving a desired goal or purpose difficultHow do managers identif
4、y problems?Do not confuse problems with symptoms of a problem,Identification of a problem,My sales reps need new computers,Step 2:identifying decision criteria,Decision criteria:criteria that define whats important or relevant in resolving a problem,Identification of decision criteria,Memory and sto
5、rage Display qualityBattery lifeWarrantyCarrying weight,Step 3:allocating weights to the criteria,Memory and storage 10Battery life 8Carrying weight 6Warranty 4 Display quality 3,Step 4:developing alternatives,Step 5:analyzing alternatives,Step6:Selecting an alternativechoosing the best alternative
6、or the one that generated the highest total in step5Step7:Implementing the alternativeput the decision into action by conveying it to those affected and getting their commitment to itreassess the environment for any changes,especially with a long-term decisionStep8:Evaluating decision effectiveness,
7、Identification of a problem,Identification of decision criteria,Allocation of weights to criteria,Development of alternatives,My sales reps need new computers,Memory and storage Display qualityBattery lifeWarrantyCarrying weight,Memory and storage.10Battery life 8Carrying weight6Warranty4Display qua
8、lity.3,Toshiba protg Dell inspiron HP Pavilion Apple iBookSony vaio Gateway Toshiba Qosmio Lenovo Thinkpad,Analysis of alternatives,Selection of an alternative,Implementation of the alternative,Evaluation of decision effectiveness,Toshiba protg Dell inspiron HP Pavilion Apple iBookSony vaio Gateway
9、Toshiba Qosmio Lenovo Thinkpad,Toshiba protg Dell inspiron HP Pavilion Apple iBookSony vaio Gateway Toshiba Qosmio Lenovo Thinkpad,Toshiba!,managers making decisions,managers make decision when.,planning organizingleading controlling,3 perspectives on how managers make decisions,rationalitybounded r
10、ationalityintuition,HP acquired Compaq in 2001.While a few months later,HPs performance suffered.,Rationality,Managers make consistent,value-maximizing choices with specified constraints.,Assumptions of Rationality,1.to be perfectly rational,fully objective,and logica2.Have carefully defined the pro
11、blem and identified all viable alternatives.3.Have a clear and specific goal4.Will select the alternative that maximizes outcomes in the organizations interests rather than in their personal interests.,Bounded Rationality,Rationality-too perfect,unrealisticBounded Rationality-A more realistic approa
12、chManagers make decisions rationally,but are limited(bounded)by their ability to process information,Assumptions are that decision makers:1.Will not analyze all information on all alternatives2.Satisfied maximum Choose the first alternative encountered that satisfactorily solves the problemrather th
13、an maximize the outcome of their decision by considering all alternatives and choosing the best.(upon graduation job)Influence on decision makingEscalation of commitment:an increased commitment to a previous decision despite evidence that it may have been wrong.(the space disaster),The Role of Intui
14、tion,Intuitive decision makingMaking decisions on the basis of experience,feelings,and accumulated judgment.five different aspects of intuitionAct quickly although having limited information Managers should ignore emotions when making decisions?,Exhibit 67What is Intuition?,Structured ProblemsInvolv
15、e goals that clear.Are familiar(have occurred before).Are easily and completely definedinformation about the problem is available and complete.Programmed DecisionA repetitive decision that can be handled by a routine approach.,Types of Problems and Decisions,Types of Programmed Decisions,Policy A ge
16、neral guideline for making a decision about a structured problem.Procedure A series of interrelated steps that a manager can use to respond(applying a policy)to a structured problem.Rule An explicit statement that limits what a manager or employee can or cannot do.,Policy,Procedure,and Rule Examples
17、,Policy Accept all customer-returned merchandise.Procedure Follow all steps for completing merchandise return documentation.Rules Managers must approve all refunds over$50.00.No credit purchases are refunded for cash.,For instance,The reimbursing of travel expenses.Its no secret that one of the most
18、 mundane tasks on the planet is tracking and reporting business-travel expenses.None want to refuse it.Actually,it is a regular management work.At the same time,lots of problems appear on it.How can we do to solve this?The solution to the problem of relying on the companys rules and procedures.,adva
19、ntages and disadvantages about programmed decisions,AdvantagesReduce problemsPromote efficiencyDisadvantagesMummificationCountermeasureRegular checkingUpdating in time,Another type,Unstructured ProblemsProblems that are new or unusual and for which information is ambiguous(模糊的）or incomplete.Problems
20、 that will require custom-made solutions.Nonprogrammed DecisionsDecisions that are unique and nonrecurring（不重现的）.Decisions that generate（produce）unique responses.Eg:where to build a factory?How much is the potential market?,Programmed versus Nonprogrammed Decisions,The end,All above are our presentations.we hope it can do some good to you in your future life.God bless you,promising managers!,thank you,!,
