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© Pearson Education Limited 2015 4-1Chapter of Decision Making... © Pearson Education Limited 2015 4-44.1 Describe the decision-making process... How Do Managers Make Decisions?© Pearson

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© Pearson Education Limited 2015 4-1

Chapter

of Decision Making

Trang 2

Learning Outcomes

• Describe the decision-making process.

• Explain the three approaches managers can use

to make decisions

• Describe the types of decisions and

decision-making conditions managers face

© Pearson Education Limited 2015 4-2

Trang 3

Learning Outcomes (cont.)

• Discuss group decision-making.

• Discuss contemporary issues in managerial

decision making

© Pearson Education Limited 2015 4-3

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© Pearson Education Limited 2015 4-4

4.1

Describe the decision-making process

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How Do Managers Make Decisions?

© Pearson Education Limited 2015 4-5

Trang 6

Identifying a Decision Problem

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Identifying Decision Criteria

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Developing Alternatives

4-9

© Pearson Education Limited 2015

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Analyzing Alternatives

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© Pearson Education Limited 2015 4-11

Selecting the Best Alternative

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Implementing the Decision

Decision implementation:

putting a decision into action

© Pearson Education Limited 2015 4-12

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Evaluating the Decision

Appraising the outcome of the decision:

Was the problem resolved?

© Pearson Education Limited 2015 4-13

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Common Errors

© Pearson Education Limited 2015 4-14

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© Pearson Education Limited 2015 4-15

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Three Approaches Used to Make

Decisions: Types of Decisions

4-16

© Pearson Education Limited 2015

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Rational Model

Rational decision making:

choices that are consistent and value-maximizing within specified constraints

© Pearson Education Limited 2015 4-17

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Bounded Rationality

Satisfice

Escalation of commitment

© Pearson Education Limited 2015 4-18

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Intuitive Decision Making

© Pearson Education Limited 2015 4-19

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© Pearson Education Limited 2015 4-20

4.3 Describe the types

of decisions and decision-making conditions that managers face

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Types of Decisions (cont.)

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Problems, Decision Types, and

Organizational Levels

© Pearson Education Limited 2015 4-24

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© Pearson Education Limited 2015 4-26

4.4

Discuss group decision-making

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How Do Groups Make Decisions?

Decisions are often made by groups representing the people who will be most affected by those

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Advantages of Group Decision

Making

• More complete information

• Diversity of experiences/perspectives

• More alternatives generated

• Increased acceptance of solution

• Increased legitimacy

© Pearson Education Limited 2015 4-28

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Disadvantages of Group Decision Making

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When a group exerts extensive pressure on an

individual to withhold his or her different views in order to appear to be in agreement

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When Are Groups Most Effective?

Individual

•Faster decision making

•More efficient use of

work hours

Group

•More accurate decisions

•More creative

•More heterogeneous representation

•Greater acceptance of final solution

© Pearson Education Limited 2015 4-31

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Improving Group Decision Making

Make group decisions more creative by:

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© Pearson Education Limited 2015 4-33

4.5 Discuss

contemporary issues in

managerial decision making

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Contemporary Issues

Creativity lets the decision maker:

• Understand a problem more fully

• See problems others can’t

• Identify all viable alternatives

© Pearson Education Limited 2015 4-35

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© Pearson Education Limited 2015

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