Decisionmakingtheessence6kit.pptx
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1、8 8thth edition editionSteven P.RobbinsSteven P.RobbinsMary CoulterMary CoulterPowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookCopyright 2005 Prentice Hall,Inc.Copyright 2005 Prentice Hall,Inc.All rights reserved.All rights reserved.L E A R N I N G O U T L I N E Follow
2、this Learning Outline as you read and study this chapter.The Decision-Making ProcessDefine decision and decision-making process.Describe the eight steps in the decision-making process.Explain the challenges managers face in identifying problems.Discuss why decision criteria are important in the deci
3、sion-making process.Describe how managers develop,analyze,and select alternatives.Explain what happens during implementation and evaluation.2Copyright 2005 Prentice Hall,Inc.All rights reserved.*L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.The
4、Managers as Decision MakerExplain why decision making is synonymous with managing.Discuss the assumptions of rational decision making.Describe the concepts of bounded rationality,satisficing,and escalation of commitment.Explain what intuition is and how it affects decision making.Contrast programmed
5、 and nonprogrammed decisions.Define the three forms of programmed decision making.Contrast the three decision-making conditions.3Copyright 2005 Prentice Hall,Inc.All rights reserved.*L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.The Managers as
6、Decision Maker(contd)Explain maximax,maximin,and minimax decision choice approaches.Describe the four decision making styles.Discuss the twelve decision-making biases managers may exhibit.Describe how manager can deal with the negative effects of decision errors and biases.Explain the managerial dec
7、ision-making model.Decision Making for Todays WorldDescribe todays decision-making environment.4Copyright 2005 Prentice Hall,Inc.All rights reserved.*L E A R N I N G O U T L I N E (contd)Follow this Learning Outline as you read and study this chapter.Decision Making for Todays World(contd)Explain ho
8、w managers can make effective decisions in todays world.List six characteristics of an effective decision-making process.Tell what a highly reliable organization is.Describe the five habits of highly reliable organizations.5Copyright 2005 Prentice Hall,Inc.All rights reserved.*L E A R N I N G O U T
9、L I N E (contd)Follow this Learning Outline as you read and study this chapter.What Is An Organization?Describe the characteristics of an organization.Explain how the concept of an organization is changing.Why Study Management?Explain the universality of management concept.Discuss why an understandi
10、ng of management is important even if you dont plan to be a manager.Describe the rewards and challenges of being a manager.6Copyright 2005 Prentice Hall,Inc.All rights reserved.*Decision MakingDecisionMaking a choice from two or more alternatives.The Decision-Making ProcessIdentifying a problem and
11、decision criteria and allocating weights to the criteria.Developing,analyzing,and selecting an alternative that can resolve the problem.Implementing the selected alternative.Evaluating the decisions effectiveness.7Copyright 2005 Prentice Hall,Inc.All rights reserved.*Step 1:Identifying the ProblemPr
12、oblemA discrepancy between an existing and desired state of affairs.Characteristics of ProblemsA problem becomes a problem when a manager becomes aware of it.There is pressure to solve the problem.The manager must have the authority,information,or resources needed to solve the problem.8Copyright 200
13、5 Prentice Hall,Inc.All rights reserved.*Step 2:Identifying Decision CriteriaDecision criteria are factors that are important(relevant)to resolving the problem.Costs that will be incurred(investments required)Risks likely to be encountered(chance of failure)Outcomes that are desired(growth of the fi
14、rm)Step 3:Allocating Weights to the CriteriaDecision criteria are not of equal importance:Assigning a weight to each item places the items in the correct priority order of their importance in the decision making process.9Copyright 2005 Prentice Hall,Inc.All rights reserved.*Step 4:Developing Alterna
15、tivesIdentifying viable alternativesAlternatives are listed(without evaluation)that can resolve the problem.Step 5:Analyzing AlternativesAppraising each alternatives strengths and weaknessesAn alternatives appraisal is based on its ability to resolve the issues identified in steps 2 and 3.10Copyrigh
16、t 2005 Prentice Hall,Inc.All rights reserved.*Step 6:Selecting an AlternativeChoosing the best alternativeThe alternative with the highest total weight is chosen.Step 7:Implementing the DecisionPutting the chosen alternative into action.Conveying the decision to and gaining commitment from those who
17、 will carry out the decision.11Copyright 2005 Prentice Hall,Inc.All rights reserved.*Step 8:Evaluating the Decisions EffectivenessThe soundness of the decision is judged by its outcomes.How effectively was the problem resolved by outcomes resulting from the chosen alternatives?If the problem was not
18、 resolved,what went wrong?12Copyright 2005 Prentice Hall,Inc.All rights reserved.*Making DecisionsRationalityManagers make consistent,value-maximizing choices with specified constraints.Assumptions are that decision makers:vAre perfectly rational,fully objective,and logical.vHave carefully defined t
19、he problem and identified all viable alternatives.vHave a clear and specific goalvWill select the alternative that maximizes outcomes in the organizations interests rather than in their personal interests.13Copyright 2005 Prentice Hall,Inc.All rights reserved.*Making Decisions(contd)Bounded Rational
20、ityManagers make decisions rationally,but are limited(bounded)by their ability to process information.Assumptions are that decision makers:vWill not seek out or have knowledge of all alternativesvWill satisficechoose the first alternative encountered that satisfactorily solves the problemrather than
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