M Now Ch 3 Flashcards
Why plan?
*enables manager to actively affect instead of passively accept the future
Short -Range Plans
Cover up to 1 year
Long -Range Plans
Are derivate from the mission
Contingency Plans
Plans that address the what-ifs of a manager’s job - knowing what to do if something goes wrong.
MBO = Management by Objectives
A philosophy based on converting organizational objectives into personal objectives –> improved performance.
Polices
Broad, general guides to action that constrain or direct the attainment of objectives.
Procedure
Series of related steps or tasks expressed in chronological order for a specific purpose.
Rules
Requires specific actions to be taken or not to be taken in a given situation.
Decision process = Choice
Nonmanagement decisions are concentrated in the last stage.
Decision Making
In its narrowest sense, the process of choosing from among various alternatives.
Optimizing Approach
- recognize the need for a decision
- establish rank and weigh criteria
- gather available information and data
- identify possible alternatives
- evaluate each alternative with respect to all criteria
- SELECT THE BEST ALTERNATIVE
Intuitive Approach
Decision making process that relies on hunches and intuition.
Situation of Risk
Situation that occurs when a decision maker has reliable but incomplete information.
Risk -Adverting Approach
Decision -Making approach that involves choosing the alternative with the least variation among its possible outcomes.
Group Decisions
More polar -extreme
