Chapter 9.3: Decision-making steps Flashcards
1
Q
What are the steps for an effective decision-making process?
A
- Recognition of decision requirement
- Diagnosis and analysis of causes
- Development of alternatives
- Selection of desired alternative
- Implementation of chosen alternative
- Evaluation and feedback
2
Q
- Recognition of decision requirement
A
A problem occurs when organizational accomplishment is less than the established goals. When a problem or opportunity is presented, decisions have to be make. An opportunity is when managers see potential accomplishments that exceeds current goals.
3
Q
- Diagnosis and analysis of causes
A
- Managers analyze underlying casual factors associated with the decision situation.
- Ask questions to help specify what actually happened and why.
4
Q
- Development of alternatives
A
- Generate possible alternatives solution that will respond to the needs of the situation and correct underlying causes
- Programmed decisions: feasible alternatives are easy to identify
- Non-programmed decisions: developing new courses of action
5
Q
- Selection of desired alternative
A
- Best alternative is selected (should fit goals + least amount of risk)
- Risk propensity: the willingness to undertake risk with the opportunity of gaining an increased payoff
6
Q
- Implementation of chosen alternative
A
- Involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out
- Success depends on the managers ability to translate it into action
- Requires: communication, motivation and leadership skills
7
Q
- Evaluation and feedback
A
- Gather information that tells how well the decision was implemented and whether it was effective in achieving its goals
- Decision making is an ongoing process, so feedback is important
- Feedback is the part of monitoring that assesses whether a new decision needs to be made
- Big problems are solved by trying several alternatives in sequence, each providing modest improvement
