The main contents of the chapter consist of the following: Decision making, classical model of decision making, the decision-making process, decisions in the management functions, making decisions-rationality. | Management Practices Lecture-23 1 Recap Conflict Management Strategies for Dealing with Conflict Conflict Resolution Skills 2 Today’s Lecture Decision Making Classical Model of Decision Making The Decision-Making Process Decisions in the Management Functions Making Decisions-Rationality 3 The Classical Model Classical Model of Decision Making A prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action Optimum decision : The most appropriate decision in light of what managers believe to be the most desirable future consequences for their organization. 4 4 4 The Classical Model of Decision Making 5 Decision Making Decision Making a choice from two or more alternatives. The Decision-Making Process Identifying a problem and decision criteria and allocating weights to the criteria. Developing, analyzing, and selecting an alternative that can . | Management Practices Lecture-23 1 Recap Conflict Management Strategies for Dealing with Conflict Conflict Resolution Skills 2 Today’s Lecture Decision Making Classical Model of Decision Making The Decision-Making Process Decisions in the Management Functions Making Decisions-Rationality 3 The Classical Model Classical Model of Decision Making A prescriptive model of decision making that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action Optimum decision : The most appropriate decision in light of what managers believe to be the most desirable future consequences for their organization. 4 4 4 The Classical Model of Decision Making 5 Decision Making Decision Making a choice from two or more alternatives. The Decision-Making Process Identifying a problem and decision criteria and allocating weights to the criteria. Developing, analyzing, and selecting an alternative that can resolve the problem. Implementing the selected alternative. Evaluating the decision’s effectiveness. 6 6 The Decision-Making Process 7 7 Step 1: Identifying the Problem Problem A discrepancy between an existing and desired state of affairs. Characteristics of Problems A problem becomes a problem when a manager becomes aware of it. There is pressure to solve the problem. The manager must have the authority, information, or resources needed to solve the problem. 8 8 Step 2: Identifying Decision Criteria Decision criteria are factors that are important (relevant) to resolving the problem. Costs that will be incurred (investments required) Risks likely to be encountered (chance of failure) Outcomes that are desired (growth of the firm) Step 3: Allocating Weights to the Criteria Decision criteria are not of equal importance: Assigning a weight to each item places the items in the correct priority order of their importance in the decision making process. 9 9 Step 4: Developing Alternatives .
