Professional Documents
Culture Documents
UTeM
Managers as Decision
Makers
LEARNING OUTCOMES
FOLLOW THIS LEARNING OUTLINE AS YOU READ AND STUDY
THIS CHAPTER.
Define decision.
LEARNING OUTCOMES
6.3 Types Of Decisions and Decision-Making
Conditions.
LEARNING OUTCOMES
6.5 Effective Decision Making In Todays World.
DECISION MAKING
Decision
Making
Developing,
Implementing
Evaluating
EXHIBIT 61 THE
DECISION-MAKING
PROCESS
Problem
A discrepancy
affairs.
Characteristics of Problems
A problem
There
The
Criterion
Weight
10
Battery life
Carrying Weight
Warranty
Display Quality
STEP 4: DEVELOPING
ALTERNATIVES
If
MAKING DECISIONS
Rationality
Managers
Assumptions
Bounded Rationality
Managers
Assumptions
Influence
on decision making
Structured Problems
Involve
Are
Are
Programmed Decision
A repetitive
approach.
Procedure
A series
Rule
An
Policy
A general
Policy
Accept
Procedure
Follow
Rules
Managers
No
Unstructured Problems
Problems
Problems
Nonprogrammed Decisions
Decisions
Decisions
DECISION-MAKING CONDITIONS
Certainty
A situation
Risk
A situation
EXHIBIT 68
EXPECTED VALUE FOR
REVENUES FROM THE ADDITION OF ONE SKI
LIFT
Uncertainty
Limited
DECISION-MAKING STYLES
Heuristics
Using
Overconfidence Bias
Holding
Anchoring Effect
Fixating
Confirmation Bias
Seeking
Framing Bias
Selecting and highlighting certain aspects of a situation
while ignoring other aspects.
Availability Bias
Losing decision making objectivity by focusing on the most
recent events.
Representation Bias
Drawing analogies and seeing identical situations when
none exist.
Randomness Bias
Creating unfounded meaning out of random events.
Self-Serving Bias
Taking
Hindsight Bias
Mistakenly
cultural differences.
Defer
Let
Embrace
complexity.
Anticipate,
Chapter 6: BPTU 1013
CHARACTERISTICS OF AN EFFECTIVE
DECISION-MAKING PROCESS
TERMS TO KNOW
decision
policy
Decision-making process
unstructured problems
problem
nonprogrammed decisions
decision criteria
certainty
risk
bounded rationality
uncertainty
satisficing
directive style
escalation of commitment
analytic style
conceptual style
structured problems
behavioral style
programmed decision
heuristics
procedure
rule
business performance
management (BPM) software