Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-1 Making Decisions 8

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-2 OBJECTIVES 1.A fundamental understanding of the term decision 2.An understanding of each element of the decision situation 3.An ability to use the decision-making process

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-3 OBJECTIVES 4.An appreciation for the various situations in which decisions are made 5.An understanding of probability theory and decision trees as decision-making tools 6.Insights into groups as decision makers

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-4 Definition of a Decision Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-5 Types of Decisions – Programmed decisions – Nonprogrammed decisions Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-6 Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-7 Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-8 Responsibility for Making Organizational Decisions – Scope of the decision – Consensus Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-9 Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Elements of the Decision Situation – Decision Makers – Goals to be Served – Relevant Alternatives – Ordering of Alternatives – Choice of Alternatives Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Rational Decision-Making Process – Definition – Model Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Identifying an Existing Problem – Problem-solving process – How problems are presented to managers Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Listing Alternative Solutions – Paradox of choice – Inclusion – Exclusion Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Selecting the Most Beneficial Alternative Implementing the Chosen Alternative Gathering Problem-Related Feedback Fundamentals of Decisions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Bounded Rationality Satisfice Bounded Rationality

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Definition of Intuition Decision-Making Heuristics & Biases Decision-Making Conditions: Risk & Uncertainty Decision Making and Intuition

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Decision Making and Intuition

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Probability Theory Decision Trees Decision-Making Tools

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Decision-Making Tools

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Decision-Making Tools

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Advantages & Disadvantages of Using Groups to Make Decisions – Advantage: More & better decision alternatives – Advantage: Group support – Advantage: Group takes ownership Group Decision Making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Advantages & Disadvantages of Using Groups to Make Decisions – Disadvantage: Takes longer – Disadvantage: More costly – Disadvantage: Could become contaminated Group Decision Making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Processes for Making Group Decisions – Brainstorming – Nominal Group Technique – Delphi Technique Group Decision Making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Group Decision Making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc Evaluating Group Decision-Making Processes Group Decision Making

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. 8-28