Lecture 6 - Making decisions. In this chapter students will be able to: A fundamental understanding of the term decision, an understanding of each element of the rational decision-making process, an appreciation of the role of intuition in decision making, insights regarding the various tools used to make decisions, an understanding of how groups make decisions. | CSC350: Learning Management Systems COMSATS Institute of Information Technology (Virtual Campus) Lecture # 6 Making Decisions 2 General characteristics of planning Different types of plans Major steps of the planning process Relationship between planning and organizational objectives Management by objectives (MBO) program Types of planning tools Review of the Previous Lecture 3 3 Understanding the term decision Understanding rational decision-making process Role of intuition in decision making Various tools used to make decisions Understanding how groups make decisions Topics of Discussion 4 4 Definition of a Decision Choice between two or more available alternatives Definition of Decision Making Process of choosing the best alternative for reaching objectives FUNDAMENTALS OF DECISIONS 5 Types of Decisions 6 Programmed Decision Routine and repetitive Structured, planned Made according to established guidelines Nonprogrammed Decision One-time, nonroutine, unique Less structured than | CSC350: Learning Management Systems COMSATS Institute of Information Technology (Virtual Campus) Lecture # 6 Making Decisions 2 General characteristics of planning Different types of plans Major steps of the planning process Relationship between planning and organizational objectives Management by objectives (MBO) program Types of planning tools Review of the Previous Lecture 3 3 Understanding the term decision Understanding rational decision-making process Role of intuition in decision making Various tools used to make decisions Understanding how groups make decisions Topics of Discussion 4 4 Definition of a Decision Choice between two or more available alternatives Definition of Decision Making Process of choosing the best alternative for reaching objectives FUNDAMENTALS OF DECISIONS 5 Types of Decisions 6 Programmed Decision Routine and repetitive Structured, planned Made according to established guidelines Nonprogrammed Decision One-time, nonroutine, unique Less structured than programmed decisions Types of Decisions 7 Types of Decisions 8 Responsibility for Making Organizational Decisions 9 Decision Makers Individuals or Groups who actually make the choice among the alternatives Orientations Receptive Exploitative Hoarding Marketing-Oriented Elements of the Decision Situation 10 Goals to be Served Should be organization’s objectives Relevant Alternatives Feasible for solving existing problem & implementation Ordering of Alternatives Ranking most desirable to least desirable Choice of Alternatives Actual choice among available alternatives Elements of the Decision Situation 11 RATIONAL DECISION-MAKING PROCESS 12 Step 1 – Identifying an Existing Problem Only after identifying the barriers is management able to take the steps necessary to eliminate them Barnard’s sources of input for identifying problems: Orders issued by supervisors Situations relayed by employees Normal activity of managers themselves RATIONAL DECISION-MAKING PROCESS 13 RATIONAL .
