Académique Documents
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Identification of problem Identification of Decision Criteria Allocation of weights to criteria Development of alternatives Analysis of alternatives Decide on an alternative Implementation of decision Evaluation of decision
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Development of Alternatives
Acer Compaq Gateway HP Micromedia NEC Sony Toshiba
Analysis of Alternatives
RSWWPS Acer 4 3 4 3 2 6 Compaq 3 4 5 2 6 7 Gateway 9 6 7 7 8 2 HP 3 5 6 7 6 5 Micromedia 2 2 3 4 5 4 NEC 3 45 6 7 2 Sony 7 56 4 2 8 Toshiba 3 45 6 7 3
Selection of an Alternative
Implementation of an Alternative
Acer 125 Compaq 142 Gateway 246 HP 174 Micromedia 103 NEC 151 Sony 192 Toshiba 154
Gateway
Single, welldefined goal is to be achieved All alternatives and consequences are known Problem is clear and unambiguous
Bounded Rationality
behave rationally within the parameters of a simplified decision-making process that is limited by an individuals ability to process information
subconscious process of making decisions on the basis of experience, values, and emotions
does not rely on a systematic or thorough analysis of the problem generally complements a rational analysis
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minimize the need for managers to use discretion facilitate organizational efficiency
unusual problems for which information is ambiguous or incomplete Nonprogrammed Decisions - used to address poorly- structured problems
Type of Problem
Nonprogrammed Decisions
Level in Organization
Programmed Decisions
Well-structured Lower
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Things to consider . . .
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Expected Value for Revenues from the Addition of One Ski Lift
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What to do?
maximax choice optimistic
maximizing the maximum possible payoff taking the best of all possible cases maximin choice pessimistic maximizing the minimum possible payoff taking the best of the worst cases minimax - minimize the maximum regret (difference between what you get and the 14 best case)
Payoff Matrix
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Regret Matrix
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Decision-Making Styles
Value orientations
Low tolerance: require consistency and order High tolerance: multiple thoughts simultaneously
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Decision-Making Styles
Directive
Prefer simple, clear solutions Make decisions rapidly Do not consider many alternatives Rely on existing rules
Analytical
Prefer complex problems Carefully analyze alternatives Enjoy solving problems Willing to use innovative methods
Conceptual
Socially oriented Humanistic and artistic approach Solve problems creatively Enjoy new ideas
Behavioral
Concern for their organization Interest in helping others Open to suggestions Rely on meetings
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Analytical
Conceptual
Directive
Low Tasks and Technical Concerns
Behavioral
People and Social Concerns
Value Orientation
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Disadvantages
1. Social pressure 2. Minority domination 3. Logrolling 4. Goal displacement 5. Groupthink
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Decision-Making Approach Rationality Bounded Rationality Intuition Types of Problems and Decisions Well-structured - programmed Poorly structured - nonprogrammed
Decision-Making Process
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