Coverage

Only available on StudyMode
  • Download(s) : 21
  • Published : December 2, 2012
Open Document
Text Preview
COLLEGE OF HOTEL AND RESTAURANT MANAGEMENT

HRM 3I
PRINCIPLES OF MANAGEMENT

MIDTERM

References:
NEW ERA OF MANAGEMENT CONCEPTS & APPLICATIONS by: R. DAFT PRINCIPLES OF MANAGEMENT by: ROBBINS / COULTER
HOTEL & MOTEL MANAGEMENT OPERATIONS by: WILLIAM GRAY

DECISION-MAKING: THE ESSENCE OF THE MANAGER’S JOB
Part 2

INTRODUCTION

Welcome to the world of managerial decision making managers often referred to as decision makers, and every organization grows, prospers, or fails as result of decisions made by its managers. Yet decision making, particularly in relation to complex problems such as those faced by many organizations, is not always easy. Good decision making is vital part of good management because decisions determine how the organization solves problems, allocates resources, and accomplishes its goals.

LEARNING OBJECTIVES:
The Decision-Making Process
* Define decision and decision-making process.
* Describe the eight steps in the decision-making process. The Manager as Decision Maker
* Discuss the assumptions of rational decision making. * Describe the concepts of bounded rationality, satisficing, and escalation of commitment. * Explain intuitive decision making.

* Contrast programmed and nonprogrammed decisions.
The Manager as Decision Maker
* Contrast the three decision-making conditions.
* Explain maximax, maximin, and minimax decision choice approaches. * Describe the four decision making styles.
* Discuss the twelve decision-making biases managers may exhibit. * Describe how manager can deal with the negative effects of decision errors and biases. * Explain the managerial decision-making model.

Decision Making for Today’s World
* Explain how managers can make effective decisions in today’s world. * List six characteristics of an effective decision-making process. * Describe the five habits of highly reliable organizations.

DECISION MAKING
* Decision
* Making a choice from available alternatives.
* The Decision-Making
* Is the process of identifying problems and opportunities and then resolving them. It involves effort both before and after the actual choice.

SIX STEPS IN THE MANAGERIAL DECISION-MAKING PROCESS

* Step 1: Recognition of decision requirement.
A decision requirement can be based on a problem or an opportunity. Managers scan the environment regularly, to identify whether there are internal or external factors that require decision action. * Step 2: Diagnosis and analysis of causes.

You will refine your understanding of the actual situation and identify the root causes. * Step 3: Development of alternatives. 
Generate alternatives solutions that will respond to the needs of the situation and correct the underlying causes. * Step 4: Selection of desired alternative. 
Choose best alternative which is the solution that best fits the overall goals and values of the organization and achieves the desired results using the fewest resources. * Step 5: Implementation of chosen alternative.

This stage involves the use of managerial, communication, administrative, and persuasive abilities to ensure the choice is carried out. The success of a decision is based on how it is implemented.  * Step 6: Evaluation and feedback.

Gather information that tells you whether it was effective in achieving its goals and how well the decision was implemented. Feedback is the part of monitoring that assesses whether a new decision needs to be made, and if so it will help them get back on track. 

DECISIONS IN THE MANAGEMENT FUNCTIONS

MAKING DECISIONS

* RATIONALITY
* Managers make consistent, value-maximizing choices with specified constraints. * Assumption of Rationality

* BOUNDED RATIONALITY
* Managers make decisions rationally, but are limited (bounded) by their ability to process information. *...
tracking img