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Decision-making
Ⅰ. Definition for Decision
A decision is defined as the selection of a course of action from among alternatives; it is the core of planning. A plan cannot be said to exist unless a decision has been made.
Ⅰ. Definition for Decision
Every organization grows, prospers, or fails as a result of decisions by its managers.
Case-1:
Nokia’s wrong decision-making
Ⅰ. Definition for Decision
The quality of manager’s decision is the yardstick of their effectiveness and of their value to the organization.
i.e. the importance, number, and results of their decision
Ⅱ. Types of Decisions
The manager as decision maker is a problem solver, charged with either selecting from available alternatives or inventing an alternative.
Programmed and Non-programmed Decisions
2. Individual Decisions and Group Decisions
Ⅱ. Types of Decisions
Programmed and Non-programmed Decisions
A distinction can be made between programmed and non-programmed decisions which result from different types of problems and use different types of procedures.
Ⅱ. Types of Decisions
Programmed decision
A programmed decision is for structured and routine problems. Programmed decisions are repetitive and well defined, and procedures exist for resolving the problem. They are well structured because criteria of performance are normally clear, good information is available about current performance, alternatives are easily specified, and there is relative certainty that the chosen alternative will be successful.
Ⅱ. Types of Decisions
Non-programmed decisions
Non-programmed decisions are used for unstructured, novel, and ill-defined situations of a nonrecurring nature. When a problem contains elements that management has not previously confronted or if a problem is complex or extremely important, it requires a different and perhaps, unique solution. Non-programmed decisions are used when a clear-cut decision criterion does not exist. Typically, few alternatives can be developed for a non-programm
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