1. Managerial Decision Making
The act of choosing one alternative from among a set of alternatives
Major steps in the managerial decision-making process
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2. Managerial Decision Making (cont’d)
Identifying the problem or opportunity
Problem
The discrepancy between an actual condition and a desired condition
Opportunity
A “positive” problem
Problem-solving impediments
Preconceptions about the problem
Focusing on unimportant matters while overlooking significant issues
Analyzing symptoms rather than causes
Failing to look ahead
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3. Managerial Decision-Making Process (cont’d)
Generating alternatives
Brainstorming
Encouraging participants to come up with new ideas
“Blast! then refine”
Reevaluating objectives, modifying them if necessary, and devising a new solution
Selecting an alternative
Satisficing
Choosing an alternative that is not the best possible solution, but one that adequately solves the problem
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4. Managerial Decision-Making Process (cont’d)
Implementing and evaluating the solution
Requires time, planning, preparation of personnel, and evaluation of the results
An effective decision removes the difference between the actual condition and the desired condition
If a problem still exists, managers may
Decide to give the chosen alternative more time
Adopt a different alternative
Start the process all over again
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