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charpt4FoundationsofDecisionMakingDecision-making
·Decision-makingprocess
-Asetofeightstepsthatincludesidentifyinga
problem,selectingasolution,andevaluating
theeffectivenessofthesolution
·Problem
-Adiscrepancybetweenanexistingandadesiredstateofaffairs
·Decisioncriteria
—Factorsthatarerelevantinadecision
ExamplesofPlanning-FunctionDecisions
Whataretheorganization’slong-termobjectives?
Whatstrategieswillbestachievethoseobjectives?
Whatshouldtheorganization’sshort-termobjectives
be?
Whatisthemostefficientmeansofcompletingtasks?
Whatmightthecompetitionbeconsidering?
■Whatbudgetsareneededtocompletedepartmenttasks?
■Howdifficultshouldindividualgoalsbe?
ldentfication
ldentfication
Alocation
Development
Analysis
Selection
Implementation
ofa
ofdecision
ofweights
of
of
ofan
ofthe
problem
criteria
tocriteria
alternatives
altermatives
alternative
aternative
TheDecision-MakingProcess
Evaluation
of
decision
effectiveness
Decision-making
·Decisionimplementation
-Puttingadecisionintoaction;includes
conveyingthedecisiontothepersonswhowillbeaffectedbyitandgettingtheir
commitmenttoit.
MakingDecisions:TheRationalModel
Certainty
-Theimplicationthattheoutcomeofeverypossiblealternativeisknown.
Uncertainty
—Aconditionunderwhichthereisnotfull
·Risk
-Theprobabilitythataparticularoutcomewillresultfromagivendecision.
knowledgeoftheproblemandreasonable
probabilitiesforalternativeoutcomescannot
bedetermined.
·
·
Theproblem
Asingle,
Allalternatives
Preferences
Preferences
Notimeor
Finalchoice
isclearand
welldefined
and
areclear
areconstant
costconstraints
willmaximize
unambiguouS
goalistobeachieved
consequencesareknown
andstable
exist
economicpayoff
AssumptionsofRationality
Leadto
RatlonalDeclslonMaklng
WhatIsCreativePotential?
Expertise
-Understanding,abilities,
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