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Exhibit 3-2 lists the criteria and weights that our manager developed for her vehicle replacement decision. Price is the most important criterion in her decision, with performance and handling having low weights. * Exhibit 3-3 is only an assessment of the 12 alternatives against the decision criteria; it does not reflect the weighting done in step 3. If one choice had scored 10 on every criterion, you wouldn’t need to consider the weights. Step 6 is the critical act of choosing the best alternative from among those assessed. * In our vehicle example (Exhibit 3-4), the decision maker would choose the Toyota Camry. On the basis of the criteria identified, the weights given to the criteria, and the decision maker’s assessment of each vehicle’s achievement on the criteria, the Toyota scored highest [224 points] and, thus, became the best alternative. * Although the choice process is completed in the previous step, the decision may still fail if it is not implemented properly (step 7). Decision implementation includes conveying the decision to those affected and getting their commitment to it. In the last step in the decision-making process (step 8) managers appraise the result of the decision to see whether it has corrected the problem. * When managers make decisions, they not only use their own particular style, but may use “rules of thumb” or heuristics, to simplify their decision making.7 Rules of thumb can be useful because they help make sense of complex, uncertain, and ambiguous information. Even though managers may use rules of thumb, that doesn’t mean those rules are reliable * We assume that managers’ decision making will be rational; that is, they’ll make logical and consistent choices to maximize value. After all, managers have all sorts of tools and techniques to help them be rational decision makers A rational decision maker would be fully objective and logical. The problem faced would be clear and unambiguous, and the decision maker would have a
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