6Decision-Making The Essence of the Manager’s Job.ppt

Decision-Making: The Essence of the Manager’s Job Chapter6 L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter. The Decision-Making Process Define decision and decision-making process. Describe the eight steps in the decision-making process. The Manager as Decision Maker Discuss the assumptions of rational decision making. Describe the concepts of bounded rationality, satisficing, and escalation of commitment. Explain intuitive decision making. Contrast programmed and nonprogrammed decisions. L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. The Manager as Decision Maker (cont’d) Contrast the three decision-making conditions. Explain maximax, maximin, and minimax decision choice approaches. Describe the four decision making styles. Discuss the twelve decision-making biases managers may exhibit. Describe how manager can deal with the negative effects of decision errors and biases. Explain the managerial decision-making model. L E A R N I N G O U T L I N E (cont’d) Follow this Learning Outline as you read and study this chapter. Decision Making for Today’s World Explain how managers can make effective decisions in today’s world. List six characteristics of an effective decision-making process. Describe the five habits of highly reliable organizations. Decision Making Decision Making a choice from two or more alternatives. The Decision-Making Process Identifying a problem and decision criteria and allocating weights to the criteria. Developing, analyzing, and selecting an alternative that can resolve the problem. Implementing the selected alternative. Evaluating the decision’s effectiveness. Exhibit 6–1The Decision-Making Process Step 1: Identifying the Problem Problem A discrepancy between an existing and desired state of affairs. Characteristics of Problems A problem becomes a problem when a manager becomes aware of it. There is pressure to solve the problem. The