The following will be discussed in this chapter: Decision making, types of decision making, models of decision making, devil’s advocacy and dialectical inquiry, technological forces, competitive forces. | Management Practices Lecture 8 1 Recap Political, Govt., & Legal Forces Technological Forces Revolutionary technological forces Internet changes the nature of opportunities and threats Competitive Forces Collection and evaluation of information on competitors 2 Today’s Lecture Decision Making Types of Decision Making Models of Decision Making Devil’s Advocacy and Dialectical Inquiry 3 Managerial Decision Making Decision making: the process by which managers respond to opportunities and threats by analyzing options, and making decisions about goals and courses of action. Decisions in response to opportunities: managers respond to ways to improve organizational performance. Decisions in response to threats: occurs when managers are impacted by adverse events to the organization. 4 Types of Decision Making Programmed Decisions: routine, almost automatic process. Managers have made decision many times before. There are rules or guidelines to follow. Example: Deciding to reorder office . | Management Practices Lecture 8 1 Recap Political, Govt., & Legal Forces Technological Forces Revolutionary technological forces Internet changes the nature of opportunities and threats Competitive Forces Collection and evaluation of information on competitors 2 Today’s Lecture Decision Making Types of Decision Making Models of Decision Making Devil’s Advocacy and Dialectical Inquiry 3 Managerial Decision Making Decision making: the process by which managers respond to opportunities and threats by analyzing options, and making decisions about goals and courses of action. Decisions in response to opportunities: managers respond to ways to improve organizational performance. Decisions in response to threats: occurs when managers are impacted by adverse events to the organization. 4 Types of Decision Making Programmed Decisions: routine, almost automatic process. Managers have made decision many times before. There are rules or guidelines to follow. Example: Deciding to reorder office supplies. Non-programmed Decisions: unusual situations that have not been often addressed. No rules to follow since the decision is new. These decisions are made based on information, and a manger’s intuition, and judgment. Example: Should the firm invest in a new technology? 5 The Classical Model Classical model of decision making: a prescriptive model that tells how the decision should be made. Assumes managers have access to all the information needed to reach a decision. Managers can then make the optimum decision by easily ranking their own preferences among alternatives. Unfortunately, mangers often do not have all (or even most) required information. 6 The Classical Model List alternatives & consequences Rank each alternative from low to high Select best alternative Assumes all information is available to manager Assumes manager can process information Assumes manager knows the best future course of the organization 7 The Administrative Model Administrative Model of decision .
