nonprogrammed decisions
Decisions required for unique and complex management problems
programmed decisions
Situations in which specific procedures have been developed for repetitive and routine problems
decisions
A means to achieve some result or to solve some problems. The outcome of a process that is influenced by many forces
9 steps of the Rational decision making process
3 factors that lead to difficulties in identifying the problem
3 issues to determine problem significance in order to establish priorities?
Urgency. Relates to time
Impact. Related to seriousness of the problem’s effects
Growth tendency. Addresses future considerations
Method for consideration of causes
5 why’s
4 criteria to evaluate pros and cons of alternative solutions
The alternative-outcome relationship is based on 4 possible conditioms, what are they?
certainty
uncertainty
risk. decision maker has some probable estimate of the outcome of each alternative
devil’s advocate
An appointed critic of proposed group actions whose intent is to uncover underlying issues with the prevailing direction if the group
solution selection
Optimal solutions often are impossible. decision maker is a satisfier selecting alternative that meets an acceptable (satisfactory) standard
administrative decision making - bounded rationality approach
This approach assumes that decision making is not a perfectly rational process, but rather one that is fraught with constrains and limitations. Though nit optimal, decisions are thought to be satisfactory and acceptable.
satisfying decision
decision that is acceptable and good enough, but if everything where perfect it might not be the perfect solution
When does intuitive decision making takes place?
4 behavioral influences on decision making
values
propensity for risk
potential for dissonance
escalation of commitment
7 decision making traps axcording to Paul c Nutt
1 failing to understand people’s concerns and competing claims
2 overlooking people’s interests and commitments
3 defining expectations in an unclear manner
4 limiting the search for alternatives and remedies
5 misusing evaluations of possible alternatives
6 ignoring or downplaying ethical questions
7 neglecting to analyze the results to understand what work and didn’t work
values
the guidelines and beliefs that a person uses when confronted with a situation in which a choice must be made
why decision makers make unethical choices?
cognitive dissonance
Mental state of anxiety that occurs when there is a conflict among individual’s various cognition( ex attitudes and beliefs) after decision has been made
How can you reduce dissonance?
by admitting a mistake was done
Mistakes to reduce dissonance
escalation of commitment
An increasing adherence to a previous decision when a rational decision maker would withdraw
decision making
individual vs group
Establishing goals and objectives
groups because of greater amount of knowledge
decision making
individual vs group
Identifying causes and developing alternative solutions
individual efforts of team members to ensure broad search in various functional areas