13–1 Nature of Managerial Decision Making Decision making situations: 1.Programmed decisions 2.Non-Programmed decisions making.

Slides:



Advertisements
Similar presentations
© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Advertisements

Chapter 5 Decisions-making
Copyright ©2011 Pearson Education
4 Chapter Foundations of Decision Making Copyright ©2013 Pearson Education, Inc. publishing as Prentice Hall 4-1.
Decision Making, Learning, Creativity, and Entrepreneurship
Decision Making, Learning, Creativity, and Entrepreneurship
Understanding Management First Canadian Edition Slides prepared by Janice Edwards College of the Rockies Copyright © 2009 Nelson Education Ltd.
6-1 Managerial Decision Making Copyright © 2006 by South-Western, a division of Thomson Learning. All rights reserved. Chapter 6.
The Nature of Managerial Decision Making
Learning Outcomes After reading this chapter, I will be able to:
Supervision in Organizations
Decision Making Upul Abeyrathne, Dept. of Economics, University of Ruhuna, Matara.
6-1 Managerial Decision Making and Information Technology Copyright © 2006 by South-Western, a division of Thomson Learning. All rights reserved. Chapter.
Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall
5-1 Lecture 4 Decision Making, Entrepreneurship, Creativity and Organizational Culture.
Chapter 6 DECISION MAKING: THE ESSENCE OF THE MANAGER’S JOB
Managers as Decision Makers
BY Muhammad Suleman MBA MIT BSC (COMPUTER).  What is decision Making  Why decision Making  Conditions under which decision are made  What is Rational.
Decision Making. Decision making can be regarded as an outcome of mental processes leading to the selection of a course of action among several alternatives.
Chapter 4 Foundations of Decision Making
Managers as Decision Makers
Decision Making 1.  Decision ◦ Making a choice from two or more alternatives  The Decision-Making Process ◦ Identifying a problem and decision criteria.
Basic Challenges of Organizational Design
Copyright ©2011 Pearson Education
Copyright © 2005 by South-Western, a division of Thomson Learning All rights reserved 1 Chapter 8 Fundamentals of Decision Making.
Decision Making: The Essence of the Manager’s Job Ch 6.
Copyright ©2015 Pearson Education, Inc.4-1 Chapter 3 Foundations of Decision Making.
MANAGEMENT RICHARD L. DAFT.
More on Decision Making Faisal AlSager Week 5 MGT Principles of Management and Business.
FOUNDATIONS OF DECISION MAKING BSM 12. Planning involves decision-making Analyzing alternatives and choosing the best one.
BMGT – Principles of Management Nine hapter Decision Managerial Making.
Chapter 4 Decision Making
PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2005 Prentice Hall, Inc. All rights reserved. Chapter 4 Foundations.
Part 2: Planning PowerPoint Presentation by Charlie Cook Copyright © 2004 Prentice Hall, Inc. All rights reserved. Chapter 4 Foundations of Decision Making.
The Role of Decision Making in Management Chapter 1.
© Farhan Mir 2007 IMS Management Thoughts & Practices MBA & BBA Lecture 6 (Decision Making the Essence of Managerial Job) By: Farhan Mir.
Managers as Decision Makers MAN-3/2 Erlan Bakiev, Ph. D. IAA University Spring2015.
Management Practices Lecture Today’s Lectures Revision of important concepts of 1-15 lectures 2.
Chapter 6 DECISION MAKING: THE ESSENCE OF THE MANAGER’S JOB 6.1 © 2003 Pearson Education Canada Inc.
Decision Making Decision - making a choice from two or more alternatives. Problem - an obstacle that makes it difficult to achieve a desired goal.
© Pearson Education Limited 2015
4. Managerial Decision Making and Problem Solving Principles of Management and Applied Economics.
Managerial Decision Making CHAPTER 9. Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 2 Learning Objectives Explain.
Chapter 9 Decision Making. Types of Decisions and Problems Decision making is the process of identifying opportunities A decision is a choice made from.
Copyright © UOL BSCS ( ) 6–1 UOL BSCS is a largest website for study materials.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 6-1 Managers.
The Manager as a Planner and Strategist. Managerial Objectives and Planning If you don’t know where you are going, any road will take you there.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education,
Describe the eight steps in the decision-
Principles of Management
Chapter 7: Information & Decision Making Information & Managerial Decisions Text Pages
Management Practices Lecture Recap Decision Making Classical Model of Decision Making The Decision-Making Process Decisions in the Management Functions.
Chapter—7 Decision-Making.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Copyright © 2014 Pearson Education 6-1 Decision Making.
Decision Making We could use two films here, so we want lots of extra time. What to cut out? Dangerous minds is good hopefully for expectancy and equity.
Principles of Management Learning Session # 17 Dr. A. Rashid Kausar.
Chapter four Planning.
MANAGEMENT RICHARD L. DAFT.
Planning Sreekanth N V.
6 The Manager as a Decision Maker.
Management Practices Lecture 8.
Rational Decision Making 8-step Process
Decision Making Decision - making a choice from two or more alternatives. Problem - an obstacle that makes it difficult to achieve a desired goal or purpose.
Decision Making, Learning, Creativity and Entrepreneurship
Managers as Decision Makers
Copyright © 2005 Prentice Hall, Inc. All rights reserved.
Describe the eight steps in the decision-
Chapter 6 DECISION MAKING: THE ESSENCE OF THE MANAGER’S JOB
The Role of Intuition Intuitive decision making
Copyright ©2011 Pearson Education
Presentation transcript:

13–1 Nature of Managerial Decision Making Decision making situations: 1.Programmed decisions 2.Non-Programmed decisions making

13–2 Nature of Managerial Decision Making In fact Decision Making is very much identical with Managing. Let us see kind of decisions in POLCA!

13–3 Planning: 1.What the organization’s long-term objectives? (It’s a challenge, issue, or goal) 2.What strategies will best achieve those objectives? 3.What should the organization’s short-tem objectives be? 4.How difficult should individual goals be? (Goals should be achievable)

13–4 Organizing: 1.How many employees should I have report directly to me? 2.How should jobs be designed? (JD’s, Dept.) 3.When should an organization implement a different structure? (Employee Structure, Hierarchy)

13–5 Leading: 1.How do I handle employees who appear to be low in motivation? (Team, Spirit) 2.What is the most effective leadership style in a given situation? 3.How different work groups can work like teams?

13–6 Controlling: 1.What type of management information system should we have? 2.What activities in the organization need to be controlled? (Attendance) 3.How will a specific change affect workers productivity? (technology, process, structure, role)

13–7 Assurance: What is the guarantee that decision when implemented will provide the desire result.

13–8 Nature of Managerial Decision Making Decision making situations: 1.Programmed decisions 2.Non-Programmed decisions making

13–9 Nature of Managerial Decision Making Decision making situations: 1.Programmed decisions Routine, repetitive, well structured situations by use of predetermined decision rules

13–10 Nature of Managerial Decision Making Types of Problems and Situations: Well-Structured Problems Straightforward, familiar and easily defined  Involve goals that clear.  Are familiar (have occurred before).  Are easily and completely defined—information about the problem is available and complete.

13–11 Nature of Managerial Decision Making A Policy  A general guideline for making a decision about a structured problem. A Procedure  A series of interrelated steps that a manager can use to respond (applying a policy) to a structured problem. A Rule  An explicit statement that limits what a manager or employee can or cannot do in carrying out the steps involved in a procedure.

13–12 Managerial Decision Making Programmed decisions used to address structured problems 1.Minimize the need for managers to use discretion 2.Facilitate organizational efficiency

13–13 Programmed Decisions (Examples) 1.Deciding if student meet graduation requirements. 2.Determine skilled worker’s daily wage. 3.Hospital laboratory charges for a test 4.Customer want to return a purchased product. 5.To re-order kitchen supplies in a restaurant

13–14 Managerial Decision Making 2.Non-Programmed Decision making Pre determined decision rules are impractical due to novel &/or ill structured situations.

13–15 Managerial Decision Making Types of Problems and Situations: Poorly Structured Problems New, unusual problems for which information is ambiguous or incomplete

13–16 Managerial Decision Making Non-Programmed Decisions used to address poorly structured problems 1.Used a custom-made response 2.More frequent among higher-level managers Few decisions in the real world are fully programmed or non!

13–17 Non-Programmed Decisions (Examples) 1.Selection of an architect to design a new manufacturing plant/house. 2.To invest or not, in a new technology? 3.To shut down or invest in a money-losing division? 4.To switch from one academic discipline to another discipline for a better growth?

13–18 Types of Problems, Types of Decisions & Level in the Organization Types of Problems Non- Programmed Decisions Programmed Decisions Level in Organization Ill Structured Top Well Structured Lower

13–19 Managerial Decision Making 3.The Element of Risk Possibility of a chosen decision could lead to losses rather than intended results. A situation in which the manager is able to estimate the likelihood (probability) of outcomes that result from the choice of particular alternatives.

13–20 Manager as Decision Maker Models of Managerial Decisions Making: 1.Rational Model

13–21 Rational Decision-Making Model External and Internal Environmental Forces 1. Define the Issue 2. Set Goals 3. Search for Alternative Solutions 4. Compare and Evaluate Alternative Solutions 5. Choose among Alternative Solutions 6. Implement the Solution Selected 7. Follow up and Control