Scribd Logo
Upload

Welcome to Scribd!

  • 10 views

    Chapter 1 - Introduction

    Uploaded by

    AzwandiHarry
    The document discusses decision making and problem solving. It defines decision making and differentiates it from problem solving. It also outlines the typical steps in a decision making process, which includes defining the problem, developing alternatives, evaluating alternatives, selecting an alternative, implementing it, and evaluating the decision. Organizational decision making and the role of managers are also covered.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Chapter 1 - Introduction

    Uploaded by

    AzwandiHarry
    10 views21 pages
    The document discusses decision making and problem solving. It defines decision making and differentiates it from problem solving. It also outlines the typical steps in a decision making process, which includes defining the problem, developing alternatives, evaluating alternatives, selecting an alternative, implementing it, and evaluating the decision. Organizational decision making and the role of managers are also covered.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses decision making and problem solving. It defines decision making and differentiates it from problem solving. It also outlines the typical steps in a decision making process, which includes defining the problem, developing alternatives, evaluating alternatives, selecting an alternative, implementing it, and evaluating the decision. Organizational decision making and the role of managers are also covered.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views21 pages

    Chapter 1 - Introduction

    Uploaded by

    AzwandiHarry
    The document discusses decision making and problem solving. It defines decision making and differentiates it from problem solving. It also outlines the typical steps in a decision making process, which includes defining the problem, developing alternatives, evaluating alternatives, selecting an alternative, implementing it, and evaluating the decision. Organizational decision making and the role of managers are also covered.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 21

    SMG 604

    DECISION MAKING

    CHAPTER 1
    INTRODUCTION
    LEARNING OUTCOME

    • At the completion of this chapter, the student will be able to


    i) Understand the concept of decisions making
    ii) Distinguish between decision making and problem solving
    iii) Identify the decision making process
    Decision Making

    • Decision making refers to the act of evaluating (i.e., forming opinions


    of) several alternatives and choosing the one most likely to achieve
    one or more goals.
    • Common examples include deciding for whom to vote, what to eat or
    buy, and which college to attend.
    • Decision making plays a key role in many professions, such as public
    policy, medicine, and management.
    • The related concept of judgment refers to the use of information,
    often from a variety of sources, to form an evaluation or expectation.
    One might imagine that people’s judgment determines their choices,
    though it is not always the case
    Decision Making Background

    • Theories of decision making were originally developed by


    philosophers, mathematicians, and economists, who focused on how
    people make choices to achieve often conflicting goals.
    • Following the work of early theorists such as John von Neumann and
    Oskar Morgenstern and Leonard Savage, a theory called subjective
    expected utility theory has become particularly influential.
    • This theory distinguishes between the decision maker’s values
    (otherwise called his or her utilities) and expectations or beliefs. The
    key assumption is that people select the option that is associated
    with the highest overall expected utility. In plain terms, you pick the
    best option, and so decision making is about figuring out what is the
    best choice.
    Organizations

     Organizations are
    systems
     Involve people, structure
    and a common purpose
     Have limited resources
     Need to perform a series
    of functions to meet its
    objectives
    Managers
     Managers are responsible for effective
    and efficient execution of these
    organizational functions.

     A typical manager performs a number of


    functions that are categorized as:
    • Interpersonal
    • Informational
    • Decisional
    Who Make decisions?

    • What
    • Why
    • When
    • How
    • Where
    DECISION MAKING
    Definition…
    Decision:
    “A choice between two or more
    alternatives”.
    Decision making can be defined as:
    “the selection of a course of action
    from among alternatives ”.
    “the process of choosing a course of action for dealing with a
    problem or opportunity”.
    Managerial Decision
    Making

    • Decision making: the process by which


    managers respond to opportunities and
    threats by analyzing options, and making
    decisions about goals and courses of action.

     Decisions in response to opportunities:


    managers respond to ways to improve
    organizational performance.

     Decisions in response to threats: occurs when


    managers are impacted by adverse events to
    the organization.
    PROBLEM SOLVING

    Problem:
    A discrepancy between an existing
    and desired state of affairs

    Problem Solving can be defined as:


    “The process of taking corrective
    action to meet objectives”.
    Decision Making

    Perceptions of
    the decision
    maker

    Outcomes
    Decision-making Process

    1 • Define the problem

    2 • Gather facts and Develop alternatives

    3
    • Evaluate Alternatives

    4
    • Select the best alternatives

    5
    • Implement the chosen alternatives

    6
    • Evaluate the decision
    Decision Making Steps
    1. Define the problem: Managers/leaders/coaches must first realize
    that a decision must be made.

    2. Develop alternatives: managers/leaders/coaches must develop


    feasible alternative courses of action.
    • If good alternatives are missed, the
    resulting decision is poor.
    • It is hard to develop creative alternatives,
    so managers need to look for new ideas.
    3. Evaluate alternatives: what are the advantages and disadvantages
    of each alternative?
    • specify criteria, then evaluate.

    4. Choose among alternatives: managers rank alternatives and decide.


    • When ranking, all information needs to
    be considered.
    5. Implement choose alternative: managers/leaders/coaches must
    now carry out the alternative.
    • Often a decision is made and not implemented.

    6. Learn from feedback: managers should consider what went right


    and wrong with the decision and learn for the future.
    • Without feedback,
    managers/leaders/coaches never learn
    from experience and make the same
    mistake over.
    Problem Solving and Decision Making
     7 Steps of Problem Solving
    (First 5 steps are the process of problem solving)

    1. Identify and define the problem.


    2. Determine the set of alternative solutions.
    3. Determine the criteria for evaluating alternatives.
    4. Evaluate the alternatives.
    5. Choose an alternative (make a decision).
    ---------------------------------------------------------------------
    6. Implement the selected alternative.
    7. Evaluate the results.
    Decision Making Process…..

    • Always continuous & dynamics

    • It is not only a process and also a practice

    • A good decision maker will be the good leader

    • Be a best decision maker.., Be a best


    manager/leader/coach

    You might also like