MindMap Gallery The Managerial Decision Making

The Managerial Decision Making

This is a mind map about managerial decision making. Managerial Decision Making is an essential, insightful volume of classic behavioral research articles. Professor Don Moore has selected original articles that form the basis of areas of explosive productivity and influence.

Edited at 2021-12-17 13:43:25

santheya raman

The Managerial Decision Making

santheya raman

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Chapter 1 The Managerial Decision Making

Contemporary Issues in Managerial Decision Making.

National culture: influences the way decisions are made and the degree of risk involved.

Design thinking: approaching management problems as designers approach design problems.

Creativity lets the decision maker:Understand a problem more fully See problems others can’t Identify all viable alternatives

Big Data: the vast amounts Of quantifiable information that can be analyzed by highly sophisticated data processing

THE DECISION–MAKING PROCESS

Meaning

What is Problem: A discrepancy between an existing and a desired state of affairs.

What is Implementing the Decision: Putting a decision into action.

What is Identifying Decision Criteria : Relevant Factors: Price , Model , Size , Manufacturer , Options , and Repair record.

Rational decision making is choices that are consistent and value-maximizing within specified constraints.

Bounded Rationality is making decisions that are rational within the limits of a manager’s ability to process information.

Satisfice is accepting soluting that are “good enough”.

Decision-Making Errors and Biases

types

Hindsight Selective Perception Anchoring Effect Immediate Gratification Confirmation Overconfidence Availability Randomness Representation Overconfidence Framing Revision Self-serving Sunk Costs

Management functions

ORGANIZING Decide what need to be done, how will it be done and who will do it

CONTROLLING Monitoring activities to ensure they achieved as Planned.

PLANNING Defining goals by establishing strategies and make action plans to coordinate activities.

LEADING Directing and motivating all parties involved, also sorting out conflicts

What Is Intuition?

Problems Differ/ Type of Problems

Structured problem

The decision maker can have clear picture of the problems, straightforward, familiar, easily defined and to completed it .

Unstructured problem

They are new or unusual problems for which information is ambiguous or incomplete.

Decision-Making Conditions

Risk

A situation in which a decision maker is able to estimate the likelihood of certain outcomes

Certainty

A situation in which a decision maker can make accurate decision because all outcomes are known.

Uncertainty

A situation in which a decision Maker has neither certainty nor reasonable probability estimates available.

Problems, Decision Types, and Organizational Levels

Types of Decisions

Programmed

A repetitive decisions that can be handled using a routine approach.

Nonprogrammed

A unique and nonrecurring decision that requires a custom made solution.

Group Decision Making

Group decision-making is a situation faced when individuals collectively make a choice from the alternatives before them. The decision is then no longer attributable to any single individual who is a member of the group. Decisions are often made by groups representing the people who will be most affected by those decisions. Committees Task forces Review panels Work teams

1. Advantages of Group Decision Makin

Diversity of experiences/perspectives More complete information More alternatives generated Increased acceptance of solution Increased legitimacy

2. Disadvantages of Group Decision Making

Time-consuming Minority domination Ambiguous responsibility Pressures to conform

The Tragedy of Groupthink

When a group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement.

What it does Hinders decision making, possibly jeopardizing the quality of the decision by: - Undermining critical thinking in the group . - Affecting a group’s ability to objectively appraise alternatives. Deterring individuals from critically appraising unusual , minority, or unpopular views.

How it occurs Group members rationalize resistance to assumptions. Members directly pressure those who express doubts or question the majority’s views and arguments. Members who have doubts or differing points of view avoid deviating from what appears to be group consensus. An illusion of unanimity prevails.Full agreement is assumed if no one speaks up.

How to minimize it Encourage cohesiveness. Foster open discussion Have an impartial leader who seeks input from all members.

Improving Group Decision Making

Brainstorming:An idea – generating process that encourages alternatives while withholding criticism.

The nominal group technique :A decision making technique in which group members are physically present but operate independently

Electronic meetings:A type of nominal group technique in which participants are linked by computer

When Are Groups Most Effective?

Individual -Faster decision making -More efficient use of work hours Group -More accurate decisions -More creative -More heterogeneous representation -Greater acceptance of final solution

What is Decision Making : Decision Making is a process, not a simple act of choosing among alternatives.