Mgnt

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Submitted By paul26
Words 1128
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Managerial
Decision
Making
Chapter Three

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives
LO1 Describe the kinds of decisions you will face as a manager.
LO2 Summarize the steps in making “rational” decisions. LO3 Recognize the pitfalls you should avoid when making decisions.
LO4 Evaluate the pros and cons of using a group to make decisions.
3-2

Learning Objectives (cont.)
LO5 Identify procedures to use in leading a decision-making group
LO6 Explain how to encourage creative decisions
LO7 Discuss the process by which decisions are made in organizations
LO8 Describe how to make decisions in a crisis

3-3

Characteristics of
Managerial Decisions
Figure 3.1

3-4

Lack of Structure
Programmed decisions
Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations. Nonprogrammed decisions
New, novel, complex decisions having no proven answers. 3-5

Comparison of Types of Decisions
Table 3.1

3-6

Uncertainty and Risk
Certainty
The state that exists when decision makers have accurate and comprehensive information.

Uncertainty
The state that exists when decision makers have insufficient information.

3-7

Uncertainty and Risk
Risk
The state that exists when the probability of success is less than 100 percent and losses may occur. 3-8

Conflict
Conflict
Opposing pressures from different sources, occurring on the level of psychological conflict or of conflict between individuals or groups.

3-9

Two Levels of Conflict
1. Individual decision makers experience

2.

psychological conflict when several options are attractive, or when none of the options is
attractive…...

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