Managerial Decision Making
MANAGERIAL DECISION MAKING
The business executive is by profession a decision maker.
Uncertainty is his opponent. Overcoming it is his mission.
John McDonald
TOPIC OUTLINE
* Characteristics of Managerial Decisions * The Stages of Decision Making * The Best Decision * Barriers to Effective Decision Making * Decision Making in Groups * Managing Group Decision Making * Organizational Decision Making * Techniques in Decision Making
ADDITIONAL TOPICS
* Planning for Decision Making * Decision Levels * Some Techniques in Decision Making
CHARACTERISTICS OF MANAGERIAL DECISIONS
Managers face problems constantly. Some problems that require a decision a relatively simple; others seem overwhelming. Some demand immediate action, while others take months or even years to unfold. Actually managers often ignore problems. For several reasons, they avoid taking action. First, managers can’t be sure how much time, energy, or trouble lies ahead once they start working on a problem. Second, getting involved is risky; tackling a problem but failing to solve it successfully can hurt a manager’s track record. Third, because problems can be so perplexing, it is easier to procrastinate or to get busy with less demanding activities. It is important to understand why decision making can be so challenging, there are several characteristics of managerial decisions that contribute to their difficulty and pressure. Most managerial decisions lack structure and entail risk, uncertainty, and conflict.
1. Lack of Structure * programmed decisions - decisions encountered and made in the past * have objectively correct answers * are solvable by using simple rules, policies, or numerical computations * nonprogrammed decisions - new, novel, complex decisions having no proven answers * a variety of solutions exist, all of which have merits and drawbacks * demand creative
The business executive is by profession a decision maker.
Uncertainty is his opponent. Overcoming it is his mission.
John McDonald
TOPIC OUTLINE
* Characteristics of Managerial Decisions * The Stages of Decision Making * The Best Decision * Barriers to Effective Decision Making * Decision Making in Groups * Managing Group Decision Making * Organizational Decision Making * Techniques in Decision Making
ADDITIONAL TOPICS
* Planning for Decision Making * Decision Levels * Some Techniques in Decision Making
CHARACTERISTICS OF MANAGERIAL DECISIONS
Managers face problems constantly. Some problems that require a decision a relatively simple; others seem overwhelming. Some demand immediate action, while others take months or even years to unfold. Actually managers often ignore problems. For several reasons, they avoid taking action. First, managers can’t be sure how much time, energy, or trouble lies ahead once they start working on a problem. Second, getting involved is risky; tackling a problem but failing to solve it successfully can hurt a manager’s track record. Third, because problems can be so perplexing, it is easier to procrastinate or to get busy with less demanding activities. It is important to understand why decision making can be so challenging, there are several characteristics of managerial decisions that contribute to their difficulty and pressure. Most managerial decisions lack structure and entail risk, uncertainty, and conflict.
1. Lack of Structure * programmed decisions - decisions encountered and made in the past * have objectively correct answers * are solvable by using simple rules, policies, or numerical computations * nonprogrammed decisions - new, novel, complex decisions having no proven answers * a variety of solutions exist, all of which have merits and drawbacks * demand creative