Decision MakingDecision making is defined as a rational choice among alternatives. A decision is the result of making a judgment or reaching a conclusion. In order to perform their jobs well, managers must make good decision.The Decision Making Process/ The Rational Model of Decision MakingThere are different ways, or models, for thinking about decision making. Attempts to show how people should make a decision are called rational model of decision-making, it assume that decision makers apply a carefully set of criteria or rationale for their decision. In the rational model, decision-making usually begins with a judgment that a problem exists or a change is needed. Once a problem ...view middle of the document...
Implement the solutionDevelop a detailed plan of implementation, including contingency plans to handle risk or new problem should they arise.Factors Affecting Decision Making1.Degree of CertaintyDecision-making under conditions of certainty means that the manager has perfect knowledge of handling the problem.Decision making under conditions of risk provides a more difficult decision making environmentDecision making under conditions of uncertainty is like being a pioneer and is the most difficult for a manager2.The Decision Strategy: Maximize or Satisficing?To maximize is to make the best possible decision. The manager needs to have the ideal resources.To satisfice is more realistic; that is, to make best decision possible with the information available with the information available and in the time available.3.The Internal EnvironmentA manager's decision-making environment is greatly structured by:-Superior-Subordinates-Organizational systems, e.g., policies, procedures, programs, rules4. External Forces-Customers-Competitors-Government agencies, the economy, etc.5.Personal Attributes of the ManagerPersonal decision making approaches (rational(logical) or nonrational(intuitive); logical(objectives, 7 steps) or intuitive(guard feeling))Ability to set prioritiesTiming of decisionDecision AnalysisDecision analysis underlines all the function of management. Even careful planning and execution cannot save an organization from the damage brought by a decision that is basically wrong. To assure growth and progress, nothing less than a system and reasoned approach to Decision Analysis will do.Pittfalls in the ProcessDecision making is no stranger to you; you make decisions everyday. The chances are that you make so many that seem automatic. Beware of these, as good decision do not come easily. They are the result of uncluttered thinking. In fact, the demand for quick decisions may be so great that it can catch you unwittingly in any of these traps.1.Supporting a favored alternative/common/stereotype.When faced with a choice, you look only at one possible action then build a case to support it.2.Looking only at the positive side of an alternative.After thinking about the values of an alternative, the impulse to put into action is strong. Looking for bad effects of an alternative is often disregarded.3.Using assumption instead of informationUnreasonable assumptions are used to support a favored alternative.Essentials of a Logical ApproachA systematic, logical approach is needed to counteract the temptation to act impulsively when faced with complex, important situations. And it should include these essential elements:1.A focus on objectives before looking for alternatives.Too often your first impulse is to think of alternatives. Instead, s superviso...
