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Decision Making

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[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Help me to decide: ,[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision Making ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Exhibit 6 – 1 The Decision-Making Process © 2007 Prentice Hall, Inc. All rights reserved. 6–
Step 1: Identifying the Problem ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Step 2: Identifying Decision Criteria ,[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6– Step 3: Allocating Weights to the Criteria ,[object Object],[object Object]
Exhibit 6 – 2 Criteria and Weights for Computer Replacement Decision © 2007 Prentice Hall, Inc. All rights reserved. 6– Criterion Weight Memory and Storage 10 Battery life 8 Carrying Weight 6 Warranty 4 Display Quality 3
Step 4: Developing Alternatives ,[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6– Step 5: Analyzing Alternatives ,[object Object],[object Object]
Step 6: Selecting an Alternative ,[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6– Step 7: Implementing the Alternative ,[object Object],[object Object]
Step 8: Evaluating the Decision ’ s Effectiveness ,[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Exhibit 6 – 5 Decisions in the Management Functions © 2007 Prentice Hall, Inc. All rights reserved. 6–
Making Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Exhibit 6 – 6 Assumptions of Rationality © 2007 Prentice Hall, Inc. All rights reserved. 6–
Making Decisions (cont ’ d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
The Role of Intuition ,[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Exhibit 6 – 7 What is Intuition? © 2007 Prentice Hall, Inc. All rights reserved. 6– Source: Based on L. A. Burke and M. K. Miller, “ Taking the Mystery Out of Intuitive Decision Making, ” Academy of Management Executive , October 1999, pp. 91 – 99.
Types of Problems and Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Types of Programmed Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Policy, Procedure, and Rule Examples ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Problems and Decisions (cont ’ d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Exhibit 6 – 8 Programmed versus Nonprogrammed Decisions © 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision-Making Conditions ,[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision-Making Conditions ,[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision-Making Styles ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision-Making Styles (cont ’ d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Exhibit 6 – 12 Decision-Making Matrix © 2007 Prentice Hall, Inc. All rights reserved. 6–
Exhibit 6 – 13 Common Decision-Making Errors and Biases © 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision-Making Biases and Errors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision-Making Biases and Errors (cont ’ d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision-Making Biases and Errors (cont ’ d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision-Making Biases and Errors (cont ’ d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Exhibit 6 – 14 Overview of Managerial Decision Making © 2007 Prentice Hall, Inc. All rights reserved. 6–
Decision Making for Today ’ s World ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–
Characteristics of an Effective Decision-Making Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],© 2007 Prentice Hall, Inc. All rights reserved. 6–

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Decision Making

  • 1.
  • 2.
  • 3.
  • 4.
  • 5. Exhibit 6 – 1 The Decision-Making Process © 2007 Prentice Hall, Inc. All rights reserved. 6–
  • 6.
  • 7.
  • 8. Exhibit 6 – 2 Criteria and Weights for Computer Replacement Decision © 2007 Prentice Hall, Inc. All rights reserved. 6– Criterion Weight Memory and Storage 10 Battery life 8 Carrying Weight 6 Warranty 4 Display Quality 3
  • 9.
  • 10.
  • 11.
  • 12. Exhibit 6 – 5 Decisions in the Management Functions © 2007 Prentice Hall, Inc. All rights reserved. 6–
  • 13.
  • 14. Exhibit 6 – 6 Assumptions of Rationality © 2007 Prentice Hall, Inc. All rights reserved. 6–
  • 15.
  • 16.
  • 17. Exhibit 6 – 7 What is Intuition? © 2007 Prentice Hall, Inc. All rights reserved. 6– Source: Based on L. A. Burke and M. K. Miller, “ Taking the Mystery Out of Intuitive Decision Making, ” Academy of Management Executive , October 1999, pp. 91 – 99.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22. Exhibit 6 – 8 Programmed versus Nonprogrammed Decisions © 2007 Prentice Hall, Inc. All rights reserved. 6–
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. Exhibit 6 – 12 Decision-Making Matrix © 2007 Prentice Hall, Inc. All rights reserved. 6–
  • 28. Exhibit 6 – 13 Common Decision-Making Errors and Biases © 2007 Prentice Hall, Inc. All rights reserved. 6–
  • 29.
  • 30.
  • 31.
  • 32.
  • 33. Exhibit 6 – 14 Overview of Managerial Decision Making © 2007 Prentice Hall, Inc. All rights reserved. 6–
  • 34.
  • 35.