Marketing manager course chapter 06

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Chapter Decision Making McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Learning Objectives After reading this chapter, you should be able to: z Know how to implement the six stages of management decision making z Apply the criteria of quality and acceptance to a decision z Recognize the characteristics of management decisions: programmability, uncertainty, risk, conflict, and decision scope Reap the advantages and avoid the disadvantages of group decision making Develop the skill of time management to allow adequate time to make decisions Know when to delegate, and so wisely z z z McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Introduction z z z McGraw-Hill Making decisions under conditions of risk and uncertainty is one of the most important activities that managers engage in Generally, there is a lack of information and a limited amount of time available to make the decision Procrastinating and not making a decision sometimes has greater risk than making it © 2004 The McGraw-Hill Companies, Inc All rights reserved Decision Making z z The process of identifying problems and opportunities and resolving them Management decisions can be made by managers, teams, or individual employees, depending on: ¾ ¾ McGraw-Hill The scope of the decision, and The design and structure of the organization © 2004 The McGraw-Hill Companies, Inc All rights reserved Characteristics of Management Decision Making Program m ability D ecision Scope U ncertainty C onflict R isk Crisis McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Characteristics of Management Decision Making (Cont) Programmed Decisions Programmability Non-programmed Decisions Certainty Uncertainty Uncertainty McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Characteristics of Management Decision Making (Cont) z Risk – occurs when the outcome of management decision is uncertain ¾ Risk has both positive and negative aspects ¾ Decision environment for risk vary depending upon company culture and size z Conflict – occurs when there are opposing goals, scares resources, or differences in priorities z Crisis – a situation that involves small amounts of time to make a decision that can impact the survival of the organization McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Characteristics of Management Decision Making (Cont) z Decision Scope – the effect and time horizon of a decision z Strategic Decisions – long term perspective of 2-5 years and affect on the organization z Tactical Decisions – short term perspective of year or less and focus on subunits z Operational Decisions – shortest time perspective, generally less than a year, often measured on a daily or weekly basis McGraw-Hill ©©2004 2004The TheMcGraw-Hill McGraw-HillCompanies, Companies,Inc Inc.All Allrights rightsreserved reserved Stages of Decision Making Identifying and diagnosing the problem Generating alternative solutions Evaluating alternatives Selecting the best alternative Implementing the decision Evaluating the decision McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved  .. .Chapter Decision Making McGraw-Hill © 2004 The McGraw-Hill Companies, Inc All rights reserved Learning Objectives After reading this chapter, you should be able to:... decisions under conditions of risk and uncertainty is one of the most important activities that managers engage in Generally, there is a lack of information and a limited amount of time available... of identifying problems and opportunities and resolving them Management decisions can be made by managers, teams, or individual employees, depending on: ¾ ¾ McGraw-Hill The scope of the decision,