LESSON 3 CONT’N

BOUNDED RATIONALITY AND INFLUENCES ON DECISION MAKING

INTUITION An experienced based way of knowing or reasoning in which weighing and balancing evidence are done unconsciously and automatically

EMOTIONAL INTELLIGENCE The ability to connect with people and understand their emotions

QUALITY AND ACESSIBILITY OF INFORMATION The ability to supply managers with high-quality information forms the major justification for information systems

POLITICAL CONSIDERATIONS In reality many decisions are based on political considerations such as favoritism, alliances, or the desire of the decision maker to stay in favor with people who wield power.

DEGREE OF CERTAINTY A condition of certainty exists when the facts are well known and the outcome can be predicted accurately

CRISIS AND CONFLICT In a crisis, many decision makers panic. They become less rational and more emotional than they would be in calm environment.

VALUES OF THE DECISION MAKER A manager who places a high value on personal welfare of employees tries to avoid alternatives that create hardship for workers and implements decision in ways that lessen turmoil.

PROCRASTINATION To delay in taking action without valid reason

Decisive-one option, less information DECISION MAKING STYLE Decisive-one option, less information Flexible- many options, less information Hierarchic- one option, more information Integrative- many options, more information

PLANNING TOOLS AND TECHNIQUES

FORECASTING Used to predict future environmental happenings that will influence the operation of the organization SALES FORECAST- prediction of how high or how low sales will be over the period of time under consideration

METHODS OF SALES FORECASTING Jury of executive opinion method- is a method of predicting future sales levels primarily by asking appropriate managers to give their opinion on what will happen to sales in the future.

Time series analysis method- predicting future sales level by analyzing the historical relationship in an organization between sales and time

SCHEDULING Is the process of formulating detailed listings of activities that must be accomplished to attain objectives -Gantt Charts -PERT