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1、Managerial Decision Making,Chapter 03,Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.,McGraw-Hill/Irwin,Learning Objectives,LO1 Describe the kinds of decisions you will face as a manager LO2 Summarize the steps in making “rational” decisions LO3 Recognize the pitfalls you shou
2、ld avoid when making decisions LO4 Evaluate the pros and cons of using a group to make decisions,3-2,Learning Objectives (cont.),LO5 Identify procedures to use in leading a decision-making group LO6 Explain how to encourage creative decisions LO7 Discuss the process by which decisions are made in or
3、ganizations LO8 Describe how to make decisions in a crisis,3-3,Characteristics of Managerial Decisions,3-4,Figure 3.1,Lack of Structure,Programmed decisions Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computati
4、ons.,Non programmed decisions New, novel, complex decisions having no proven answers.,3-5,Comparison of Types of Decisions,3-6,Table 3.1,Uncertainty and Risk,Certainty The state that exists when decision makers have accurate and comprehensive information. Uncertainty The state that exists when decis
5、ion makers have insufficient information.,3-7,Uncertainty and Risk,Risk The state that exists when the probability of success is less than 100 percent and losses may occur.,3-8,Conflict,Conflict Opposing pressures from different sources, occurring on the level of psychological conflict or of conflic
6、t between individuals or groups.,3-9,Two Levels of Conflict,Individual decision makers experience psychological conflict when several options are attractive, or when none of the options is attractive Conflict arises between people,3-10,The Stages of Decision Making,3-11,Identifying and diagnosing th
7、e problem,Identifying and Diagnosing the Problem,Typically, a manager realizes some discrepancy between the current state (the way things are) and a desired state (the way things ought to be).,3-12,Identifying and Diagnosing the Problem,Such discrepancies may be detected by comparing current perform
8、ance against (1) past performance, (2) the current performance of other organizations or units, or (3) future expected performance as determined by plans and forecasts.,3-13,Generating Alternative Solutions,Ready-made solutions Ideas that have been seen or tried before,Custom-made solutions New, cre
9、ative solutions designed specifically for the problem,3-14,Evaluating Alternatives,Evaluating alternatives Involves determining the value or adequacy of the alternatives that were generated Which solution will be the best?,3-15,Evaluating Alternatives,Contingency plans Alternative courses of action
10、that can be implemented based on how the future unfolds.,3-16,Making the Choice,Maximizing A decision realizing the best possible outcome,3-17,Question,_ is achieving the best possible balance among several goals Maximizing Satisficing Optimizing Minimizing,3-18,Making the Choice,Satisficing Choosin
11、g an option that is acceptable, although not necessarily the best or perfect Optimizing Achieving the best possible balance among several goals,3-19,Implementing the Decision,Determine how things will look when the decision is fully operational. Chronologically order the steps necessary to achieve a
12、 fully operational decision. List the resources and activities required to implement each step. Estimate the time needed for each step. Assign responsibility for each step to specific individuals.,3-20,Implementing the Decision,What problems could this action cause? What can we do to prevent the pro
13、blems? What unintended benefits or opportunities could arise? How can we make sure they happen? How can we be ready to act when the opportunities come?,3-21,Evaluating the Decision,Feedback that suggests the decision is working implies that the decision should be continued and applied elsewhere in t
14、he organization. Negative feedback means that either (1) implementation will require more time, resources, effort, or thought or (2) the decision was a bad one,3-22,Question,_ is the process in which a decision maker carefully executes all stages of decision making. Innovation Quality Satisficing Vi
15、gilance,3-23,The Best Decision,Vigilance A process in which a decision maker carefully executes all stages of decision making,3-24,Barriers to Decision Making,3-25,Psychological Biases,Illusion of control Peoples belief that they can influence events, even when they have no control over what will ha
16、ppen Framing effects A decision bias influenced by the way in which a problem or decision alternative is phrased or presented.,3-26,Psychological Biases,Discounting the future A bias weighting short-term costs and benefits more heavily than longer-term costs and benefits.,3-27,Pros and Cons of Using
17、 aGroup to Make Decisions,3-28,Table 3.2,Potential Problems of Using a Group,Groupthink A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus,Goal displacement A condition that occurs when a decision-making group loses sight of its original go
18、al and a new, less important goal emerges.,3-29,Managing Group Decision Making,3-30,Constructive Conflict,Cognitive conflict Issue-based differences in perspectives or judgments.,Affective conflict Emotional disagreement directed toward other people.,3-31,Constructive Conflict,Devils advocate A pers
19、on who has the job of criticizing ideas to ensure that their downsides are fully explored.,Dialectic A structured debate comparing two conflicting courses of action.,3-32,Encouraging Creativity,3-33,Brainstorming,Brainstorming A process in which group members generate as many ideas about a problem a
20、s they can; criticism is withheld until all ideas have been proposed.,3-34,Models of Organizational Decision Processes,Bounded rationality A less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailab
21、le or cannot be fully processed,Incremental model Model of organizational decision making in which major solutions arise through a series of smaller decisions,3-35,Models of Organizational Decision Processes,Coalitional model Model of organizational decision making in which groups with differing preferences use power and negotiation to influence decisions.,Garbage can model Model of organizational decision making depicting a
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