...DECISION MAKING • choices from two or more alternative courses of action • all organizational members make decisions • involves gathering what information is known, identifying the options and assessing the risk and making the best decisions with the information available in a timely matter • Decision-Making Process a comprehensive, 8-step process Developing Alternatives Developing Alternatives Allocating Weights to the Criteria Allocating Weights to the Criteria Identifying Decision Criteria Identifying Decision Criteria Problem Identification Problem Identification Evaluating Decision Effectiveness Evaluating Decision Effectiveness Implementing the alternative Implementing the alternative Selecting an alternative Selecting an alternative Analyzing alternative Analyzing alternative Step 1 - Identifying a Problem • must be such that it exerts pressure to act • manager is unlikely to characterize a situation as a problem unless s/he has resources necessary to act Step 2 - Identifying Decision Criteria Decision criteria - what’s relevant in making a decision. What factors are relevant in making a decision Step 3 - Allocating Weights to the Criteria Must weight the criteria to give them appropriate priority in the decision. Not all criteria are equally important. Step 4 - Developing Alternatives List the viable alternatives that could resolve the problem without evaluating them Step 5 - Analyzing Alternatives Each alternative is evaluated...
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...What is Decision Making? Some Definitions A good place to start is with some standard definitions of decision making. 1. Decision making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. Making a decision implies that there are alternative choices to be considered, and in such a case we want not only to identify as many of these alternatives as possible but to choose the one that (1) has the highest probability of success or effectiveness and (2) best fits with our goals, desires, lifestyle, values, and so on. The two important ideas here are that first, there must be some genuine alternatives to choose from among. Note that "Do it" or "Don't do it" does not qualify as a set of alternatives. Only "Do this" or "Do something else" really qualfies. Second, every decision must be made in the light of some standard of judgment. This standard usually gets expressed in the form of criteria, which reflect the values and preferences of the decision maker. These values and preferences are often influenced by corporate rules or culture, law, best practices, and so forth. 2. Decision making is the process of sufficiently reducing uncertainty and doubt about alternatives to allow a reasonable choice to be made from among them. This definition stresses the information-gathering function of decision making. It should be noted here that uncertainty is reduced rather than eliminated. Very few decisions are made with absolute...
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...ABSTRACT The paper examined what the concept of decision and decision making is. It looked into the various components of decision making and its characteristics in all organization including the school system. It also focused on the various types of decision ranging from personal, organizational etc. The various people involved in making decisions in the educational system was also looked into and the various steps in the decision making process. Decision making also had various limitation and constraints which the study also looked into. INTRODUCTION Decision means to achieve some result or to solve some problems. It should be thought as means rather than ends as they are the organizational mechanisms by which an attempt is made to achieve a desired state. Decision-making is a central responsibility of the educational administrator. It is a fundamental process that takes place in organizations. It involves choice and entails cost. It is a means of achieving organizational goals and objectives and not an end in itself. REVIEW OF RELATED LITERATURE Decision originated from the Latin word “decisio” which means “to cut from”. To decide thus means to come to a conclusion or to pass a resolution. Decision is a conscious and deliberate resolve that binds the individual or group to taking action in a specific way. It generates towards an envisaged course of action of some specificity and is moreover an act that is made in the light of and in consistent with at least...
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...1. Introduction Decision making is a very critical and major role for a manager. There is a continue flow of information and process run through and achieve the right Decision. Here I am going to mention and analysis of the two decisions that my manager has taken. How the decision will help her and meet the organisational benefits. Also I would like to demonstrate how all the learning process of decision making will reflect my own work and practice as a assistant manager. 2.1 Overview of Organisation My company name is Housing & Care 21, established in 1964. It’s the UK’s largest non-profit care provider and a national leader in providing innovative, affordable housing for older people. Also it works closely with local communities to develop new services that meet the needs of older people and neighbourhoods. It has over 28,000 customers and delivers more than 80,000 hours of home care by 6500 members of staff. It has turnover £200m and chairs the national Housing and care Dementia research Consortium. It acquired Claimer Care Group Plc. in 2009.The company invests in A* rated vocational qualifications centre so our staff can fulfil their potential and giving them the skills to provide the best possible services to the residents and service users. Housing & Care 21 promotes choice and independent for older people through a range of care, health and housing services and accommodation. Its expertise includes retirement housing, care and support services, dementia services...
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...Definition of Planning: The planning process is the first basic managerial function According to Koontz and O’donnell,” Planning is deciding in advance What to do, how to do it, when to do it, and who is to do it.” Importance of Planning: Planning is the first and most important function of the management. It is needed at every level of the management. In the absence of planning all the business activities of the organization will become meaningless. The importance of planning has increased all the more in view of the increasing size of organizations in the absence of planning, it may not be impossible but certainly difficult to guess the uncertain events of future. Planning is important because: 1. Planning reduce risk of Uncertainty 2. Focuses on objective 3. Ensures efficiency 4. Planning provides Direction 5. Planning establishes Standards for controlling Elements/Types of Planning: 1. Mission/Purpose: It describes the types of business. It defines the overall ‘working’ of the business. It is a long term plan. 2. Objective or goal: It means expected end result. It is the specification of mission. It may be qualitative or may be quantitative. 3. Strategy: It means determination of long term actions and selecting the best/appropriate options to achieve the mission/objectives. There are some considerable based on company’s strength and weakness. 4. Policy: Guidelines for managerial decisions. It’s the boundaries for doing...
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...Decision-making is the process of choosing one option among a variety of probable alternatives. The normative model of decision making, which means how decisions need to be made, is the skill that is needed when making a decision (Furby & Beyth-Marom, 1992). In fact, we make decisions in all matters of our personal life every day. However, some of us follow certain steps to avoid any future risk, others make decision spontaneously ignoring all the consequence. As a matter of fact, models, methodologies, and evaluating tools of decision-making were well explained by Professor Frear in the previous lecture. Decisions can be categorized in two main categories, programmed decision and un-programmed decisions. Programmed decision is option that already selected for a certain situation. It is more like “IF-THEN” statement, when a specific condition is satisfied, a planned action will occur. On the other hand, the un-programmed decision is the result that comes from the analysis of gathered information for a unique situation, evaluating of list of the options, and choosing the best option among them. Based of the un-programmed decision definition, the un-programmed decision requires a well-defined procedure to be made. This procedure or model must be clear and take the consideration all the parameters that may effects the resulted decision to avoid any missing that may lead to the failure. Therefore, the decision making model has been used by organizations and even individuals...
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...A critique of Ford’s CEO Alan Mulally’s Approach to Decision Making. By Ally M Mukasa Executive Summary Ford Motor Company is a public company founded on June 16 th 1903 by Henry Ford. It is headquartered at Dearborn, Michigan in the United States of America. Its products are mainly automobiles but it also offers automotive finance, vehicle leasing and vehicle servicing. Ford has three divisions which include; Ford, Lincoln and Motocraft. Ford has subsidiaries all over the world. Mr Alan R. Mulally is its president and Chief Executive Officer. Prior to his appointment as CEO, Mr Mulally worked at Boeing. His journey from aerospace to automaker industry was a new challenge but an opportunity for him to prove to the sceptics that an aerospace person can run an automaker. Among the challenges he faced were; the economy in recession, soaring prices of gas, a calcified corporate culture, a general lack of transparency in decision making, fractious divisions, the penchant cycling of executives into new jobs every few years, the problem of pre-meetings that was antiethical to decision-making, and hiding problems. Mulally had to make decisions to address the challenges mentioned. His decision making style is much of directive with low tolerance for ambiguity than behavioural or people-centred. He did not involve Ford staffers below top echelon in decision-making. He downsized the company, closed down underperforming factories, stopped the cycling of executives into...
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...Managerial Decision Making Chapter Three Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO1 Describe the kinds of decisions you will face as a manager. LO2 Summarize the steps in making “rational” decisions. LO3 Recognize the pitfalls you should avoid when making decisions. LO4 Evaluate the pros and cons of using a group to make decisions. 3-2 Learning Objectives (cont.) LO5 Identify procedures to use in leading a decision-making group LO6 Explain how to encourage creative decisions LO7 Discuss the process by which decisions are made in organizations LO8 Describe how to make decisions in a crisis 3-3 Characteristics of Managerial Decisions Figure 3.1 3-4 Lack of Structure Programmed decisions Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations. Nonprogrammed decisions New, novel, complex decisions having no proven answers. 3-5 Comparison of Types of Decisions Table 3.1 3-6 Uncertainty and Risk Certainty The state that exists when decision makers have accurate and comprehensive information. Uncertainty The state that exists when decision makers have insufficient information. 3-7 Uncertainty and Risk Risk The state that exists when the probability of success is less than 100...
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...Available online at www.sciencedirect.com ScienceDirect Procedia - Social and Behavioral Sciences 124 (2014) 114 – 123 SIM 2013 Assessing risk factors in collaborative supply chain with the analytic hierarchy process (AHP) Andra Badeaa , Gabriela Prosteana*, Gilles Goncalvesb,c, Hamid Allaouib,c a Politehnica University of Timisoara, Remus 14, Timisoara 300191 Romania b Universite Lille Nord de France, Lille F-59000, France a Universite Artois, LGI2A, Bethune F-62400, France Abstract This paper analyzes supply chain crisis, the main blockage to effective supply chain collaboration. The research question of this article refers to how the two collaboration concepts (vertical and horizontal) in supply chain can be influenced in practice by potential risk factors. This research proposes five alternatives for a good collaboration: Information sharing collaboration, Decision synchronization collaboration, Incentive alignment collaboration, Resource and skill sharing collaboration, Knowledge Management collaboration. After a thorough research and detailed discussions, the authors identified 16 risk factors most present in literature. The research methodology was combined with the application of the analytic hierarchy process (AHP). © 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license. © 2014 The Authors. Published by Elsevier Ltd. Selection and peer-review under responsibility ofof SIM 2013/12thInternational Symposium inin...
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...Decision Making and Problem Solving: Benefits and Techniques Defining Problem Solving and Decision Making Definition of a Problem: A problem exists when there is a gap between what you expect to happen and what actually happens. Definition of Decision Making: Decision making is selecting a course of action from among available alternatives. The Difference between Decision Making and Problem Solving While both processes are systematic, problem solving involves defining a problem and creating solutions for it. Decision making is selecting a course of action from among available alternatives. Problem solving always involves decision making. However, not all decision making involves solving a problem. For example, a supervisor may have to make decisions about employees, resources, workload, etc. without having a problem to solve. Problem-Solving and Decision-Making Process Problem solving is a process in which we perceive and resolve a gap between a present situation and a desired goal, with the path to the goal blocked by known or unknown obstacles. In general, the situation is one not previously encountered, or where at least a specific solution from past experiences is not known. In contrast, decision making is a selection process where one of two or more possible solutions is chosen to reach a desired goal. The steps in both problem solving and decision making are quite similar. In fact, the terms are sometimes used interchangeably. Steps in Decision Making...
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...DECISION MAKING PROCESS The decision making process is a sequence of certain steps which are discussed below. Before the decision making begins, it is important to specify objectives. If objectives are set, then only we start with problem identification and weighing alternatives available. A standard decision making process comprises of six steps but it is not mandatory that all steps are repeated for every decision in the organization. This process is usually followed for non programmed decisions because they are new, have environmental impact and a unique solution is to be found with lot of research. For programmed decisions, this exercise is simple because programmed decisions are routine decisions and framework within which decision is...
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...Chapter 7 Decision making is the cornerstone of planning. Procter & Gamble set a goal of doubling its revenues over a 10 year period. The mission outlines the organization’s purpose, premises, values, and directions. Flowing from the mission are parallel streams of goals and plans. Directly following the mission are the strategic goals. These goals and the mission help determine strategic plans. Strategic goals and plans are primary inputs for developing tactical goals. PURPOSES OF GOALS 1ST they provide guidance and unified direction for people in the organization. Goals can help everyone understand where the organization is going and why getting there is important. 2nd goal setting practices strongly affect other aspects of planning. Effective goal setting promotes good planning, and good planning facilitates future goal setting. 3rd goals can serve as a source of motivation for employees of the organization. (reward system) 4th goals provide an effective mechanism for evaluation and control; How successfully today’s goals are accomplished. (setting a high goal and half way there realizing you will not meat that goal then study why they didn’t reach their goal) KINDS OF GOALS Goals are set for and by different levels within an organization. FOUR BASIC LEVELS OF GOALS – mission, strategic, tactical and operational. Mission - a statement of an organization’s fundamental purpose Strategic goals - a goal set by and for top management...
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...able to: Identify and discuss the basic perspectives on individual differences in different cultures. Evaluate basic views of employee motivation in international business. Identify basic views of managerial leadership in international business. Discuss the nature of managerial decision making in international business. Describe group dynamics and discuss how teams are managed across cultures. CHAPTER SUMMARY Chapter 15 examines the behavior of managers and employees in different cultures, and the impact of managerial behavior on international business. The chapter begins with a discussion of Hofstede’s work concerning individual behavioral differences, and then relates his ideas to motivation, leadership, and decision making. Finally, issues related to creating and managing cross-cultural teams are discussed. INDIVIDUAL BEHAVIOR IN INTERNATIONAL BUSINESS Individual differences are reflected in personality traits. Attitudes, perception, creativity, and stress also are factors in influencing individual behavior. Personality Differences across Cultures • Personality is the relatively stable set of psychological attributes that distinguish one person from another. Both biological factors and environmental factors are believed to be important influences on personality. It is important for international managers to recognize the existence of these differences and how they affect individual behavior. • Five personality traits are especially important...
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... |Xu Junxiang |Ma Qin |Wei Wei Contents 1. Executive Summary - 2 - 2. Requirement Analysis - 3 - 2.1 Scopes - 3 - 2.1.1 Tasks - 3 - 2.1.2 Resources - 3 - 2.1.3 Timeframe - 3 - 2.2 Current system (Definition including problems) - 4 - 3. Analysis of Options - 5 - 3.1 Proposed system/options - 5 - 3.2 Assessment of the alternatives 6 3.2.1 Alternative 1 (Callplex PBX system) 6 3.2.2 Alternative 2 (Callplex IXL system) 6 3.2.3 Alternative 3 (Open Source System) 7 3.3 Evidence (Charts) 8 4. Recommendation and Implementation Strategy 11 Executive Summary The objectives of the following feasibility report aims at providing Tellafony Solutions with: • Information regarding possible options how to deal with the present Customer Relationship Management (CRM) system. • Detailed analysis of each new option including advantages, disadvantages and predicted expenditure; • Recommendation on foreseen best option. Tellafony Solutions’ main information system is Callplex PBX, which is a ten years old Customer Relationship Management (CRM) system. It now requires a lot of maintenance and the...
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...intraorganizational problems that reflect their personal goals. In contrast to the administrative model, the political model does not assume that decisions result from applying existing standard operating procedures, programs, and routines. Decisions result from bargaining among coalitions. Unlike in the previous models, power is decentralized. This concept of decision making as a political process emphasizes the natural multiplicity of goals, values, and interests in a complex environment. The political model views decision making as a process of conflict resolution and consensus building and decisions as products of compromise. The old adage, “Scratch my back and I’ll scratch yours,” is the dominant decision-making strategy. When a problem requires a change n policy, the political model predicts that a manager will consider a few alternatives, all of them similar to existing policy. This perspective points out that decisions tend to be incremental--- that managers make small changes in response to immediate pressures instead of working out a clear set of plans and a comprehensive program. This incrementalist approach can be seen as the simplest or most extreme form of satisficing. The incremental approach of the political model allows managers to reduce the time spent on the information search and problem definition stages. Incremental decision making is geared to address shortcomings in present policy rather than consider a superior, but novel, course of action. In the political model...
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