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法国高等商学院管理学课件 Decision Making November 2017
DECISION MAKINGESSCA ANGERS § PARIS Prof. Jean-Michel Heitz November, 2017 Decision Making: Outline The Decision Making Process Approaches Managers can use to make Decisions Types of Decisions and Decision-Making Conditions Managers Face Group Decision Making Contemporary Issues in Managerial Decision Making The Decision Making Process ? How Do Managers Make Decisions The Decision Making Process DMP consists in 8 steps: Identify problem, Identify decision criteria, Weight the criteria, Develop alternatives, Analyze alternatives, Select alternatives, Implement alternatives, Evaluate decision effectiveness The Decision making Process 12 common decision-making errors: Overconfidence, Immediate gratification, Anchoring, Selective perception, Confirmation, Framing, The Decision making Process 12 common decision-making errors: Availability, Representation, Randomness, Sunk costs, Self serving bias, Hindsight Approaches Managers Can Use to Make Decisions Rational Model The assumptions of rationality are as follows: - The problem is clear and unambiguous, well defined goal has to be achieved, all alternatives and consequences are known. Approaches Managers Can Use to Make Decisions Rational Model The assumptions of rationality are as follows: The second approach, bounded rationality, says that managers make rational decisions but are bounded (limited) by their to process information. In this approach managers satisfice, which is when decision makers accept solutions that are good enough. Approaches Managers Can Use to Make Decisions Rational Model The assumptions of rationality are as follows: Finally, intuitive decision making is making decisions on the basis of experience, feeling and accumulated judgment. Types of Decision Making Programmed decisions are: Decisions that can be handled by a routine approach and are used when the problem being resolved is straightforward, familiar and easily defined (structured) Types of Decision Making Nonprogrammed decisions ar
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