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Is a choice made from available alternatives
is the process of identifying problems and opportunities and then resolving them. Decision making involves effort both before and after the actual choice.
involve situations that have occurred often enough to enable decision rules to be developed and applied in the future
Non programmed decisions
Are made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.
means that all the information the decision maker needs is fully available.
means that a decisions has a clear cut goal and that good information is available but the future outcomes associated with each alternatives are subject to change.
means that managers know which goals they wish to achieve, but information about alternatives and future events is incomplete.
Factors that may affect a decision such as price , production cost, volume, or future interest rates are difficult to analyze and predict.
means that the goals to be achieved for the problem are unclear.
The Political Model
Nonprogrammed decisions that involve managers with diverse interest
- Managers must engage in coalition building
- - Informal alliance to support specific goal
Without a coalition, powerful groups can derail the decision making process.
Political Model resembles the real environment.
Assumptions of Political Model
- Organizations are made of groups with diverse interest, goals, and values.
- Information is ambiguous and incomplete
Managers do not have the time,resources, or mental capacity to identify all dimensions of a problem.
Managers debate goals and alternatives.
An individuals willingness to take risk.
steps involves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action.
Classical, Administrative and Political Decision - Making Models
Is a situation in which organizational accomplishments have failed to meet established goals.
Decision Making Steps
Recognition of Decision Requirement- identify problem or opportunity.
Diagnosis- analyze underlying casual factors
Develop Alternatives - define feasible alternatives
Selection of Desired Alternative - Alternative with most desirable outcome
Implementation of Chosen Alternative - use of managerial and persuasive abilities to execute.
Evaluation and Feedback - gather information about effectiveness.
Personal Decsion Styles
Directive Style - people who prefer simple, clear cut solutions to problems
Analytical Style - managers perfer complex solutions based on a lot of data
Conceptual style - managers like a broad amount of information
Behavioral Style - Managers with a deep concern for others.