...Topic 7: Decision Making a) Explain with examples the TWO (2) types of decision making. b) Explain the steps in decision making. Introduction Definition of Decision Making * The thought process of selecting a logical choice from the available options * Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice. * Decision making is a process by DEFINING which a course of action is selected as away to deal with a specific problem. It is the selection of one alternative from among two or more alternatives * It is the process by which managers respond to the opportunities and threats that confront them by analyzing the options and making determinations about specific organizational goals and courses of action Answer: a) TWO (2) types of decision making Decision making is the selection of one alternative from among two or more alternatives. In other words, decision making is defined as the process by which a course of action is selected as the best way to deal with specific problem. There are two types of decision making are Programmed Decision and Non-Programmed Decision. 1. Programmed Decision Marking Programmed decision making is a repetitive decision that can be handled by a routine approach...
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...Question 2 (a) Describe and compare two decision-making model that are likely to be most commonly used by managers in a high pressure, rapidly changing environment. Explain why these two models are most relevant in such an environment? Answer: Classical Model and Administrative Model The Classical model based on rational and logical assumptions. It operates to accomplish established goals and defines problems. The manager strives for full informations and evaluates alternatives to maximize the benefit. This model of decision making is considered to be normative, which is the manager knows how the decision should be and not rely entirely on personal preferrence. Meanwhile, the Administrative Model has a vogue problems and goals. This model usualy under the uncertainty condition because managers have limited informations and alternatives. They make a decision based on intuitions and experiences but rarely use rational procedures concerning time consumptions. Most of the managers settle for satisficing choice for resolving problems. The Classical Model relevant for rapidly changing environment because this model focus on accomplising goals and resolving problems. It is derives from many informations and alternatives. The manager incorporates thoughtful analysis into decision making, not by personal perception. The Administrative Model uses intuition decision which is based on years of practice and hands-on experience that enable the manager to quickly identify solutions...
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...INTRODUCTION TO MANAGEMENT UNIT 7 Managerial Decision Making Source: Daft, R.D. (2005). Management. 7th ed. Chp. 9. At the end of this unit students should be able to: * Explain the importance of Decision Making to the organization. * Differentiate between Programmed and Non-Programmed Decisions and relate the various degrees of Certainty and Uncertainty. * Describe the characteristics of different Decision Making Models. * Outline the Decision Making process, using current organizational issues. * ------------------------------------------------- Distinguish between the Personal Decision Making Styles used by managers. Decisions and Decision Making A Decision is a choice made from available alternatives Decision Making is the process of identifying problems and opportunities and resolving them Categories of Decisions * Programmed Decisions * Situations occurred often enough to enable decision rules to be developed and applied in the future * Made in response to recurring organizational problems * Non-programmed Decisions – in response to unique, poorly defined and largely unstructured, and have important consequences to the organization Certainty, Risk, Uncertainty, Ambiguity * Many decisions that managers deal with every day involve at least some degree of uncertainty and require non-programmed decision making * May be difficult to make * Made amid changing factors * Information may...
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...Significance and Limitations of Rational Decision-making Managers as Decision-makers The Rational Model Non-rational Models Decision-making Process Types of Managerial Decisions Programmed Decisions Non-programmed Decisions Decision-making Under Certainty, Uncertainty and Risk Management Information System vs Decision Support System The Systems Approach to Decision-making Group Decision-making Forms of Group Decision-making Decision-making Techniques Summary Decision-making describes the process by which a course of action is selected to deal with a specific problem. The success of an organization depends greatly on the decisions of managers. There are two major types of models used by managers to make decisions - (1) rational model and (2) non-rational models. In the rational model, managers engage in rational decision-making processes. At the time of decision-making, they possess as well as understand all the information that is relevant to their decision. In contrast, non-rational models of managerial decision-making suggest that limitations of information-gathering and information-processing make it difficult for managers to make optimal decisions. The three non-rational models of decision-making discussed in the chapter are: satisficing, incremental, and garbage-can models. Any decision-making process contains seven basic steps: (1) identifying the problem; (2) identifying resources and constraints, (3) generating alternative...
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...MG101 INTRODUCTION TO MANAGEMENT ASSIGNMENT 2 NAME: SAHIL SHANEEL SHIRAZ STUDENT ID: S11109682 DUE DATE: 11TH MAY, 2015 Question 1 Decision making is a very crucial and integral part of any business house. Managers of different levels of the organization are involved in decision making and a good decision shall lead to a positive growth. It is like a norm for all managers to make decisions in the everyday busy schedules. The two types of managerial decision makings are programmed and non-programmed. These 2 types of decision making processes are needed in order to re-solve the day-to-day problems. Hence, this essay shall discuss the difference between programmed and non-programmed decisions using examples. To begin with, programmed decisions are decision makings to which solutions are already available from past experiences. This type of decision makings are supported by policies, procedures and rules in order to save the manager’s time. For example, in expedition of the refund processes, the departmental stores use certain rules and policies, “Return shoes with tag still on, undamaged and within 7 days of purchasing” (De Cieri et.al.2003). It is said to be that programmed decision makings are repetitive and of usual routine. In programmed decision making, managers usually don’t have to spend much time in trying to solve the problems which are business related. According to Gustafson (2015), a manager’s work gradually gets in routine and repetition mode. Like the process mechanics...
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...Study: Decision Making at Choco, p137 1. What is the case about? In your own words, summarise the case by highlighting the main issues. 2. Describe the decision making process at ChocCo. Who were the parties involved? Who should have been involved and why? The decision-making process has been highly centralised. The strategic decision to change the shift timings has been made by the top management on the assumption that the workers will accept it. The decision making style should have been consultative, and the workers’ opinions should have been sought before making such an important decision. The Union should have been involved right from the start and their input would have played a valuable role in enhancing the productivity level of employees. 3. How might you have ensured everyone was involved in the decision making process at ChocCo? Some ways include taking a survey of workers’ opinions regarding shift changes, and participation of Union and workers in the decision-making process. Students could look at the satisficing model of decision making. This model is appropriate because the management of ChocCo have inadequate information about the nature of the issue to be decided and also about possible alternatives and their strengths and limitations. While looking at the satisficing model, students could discuss the concept of bounded rationality. Students could also discuss the section on ‘Steps in an effective decision-making...
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...BUS1001 – Introduction to Management and Organisations: Examination Guidance & How to tackle specific questions The Exam Wednesday 21st May 9.30 – 11.30. Three venues: * Sports Centre Hall * Sports Centre Multi Purpose Room Level 1 * Tyne Suite. Premier Inn * Make sure you know which venue you are in and where it is and turn up in good time * 2 hours * 3 questions from a choice of 7 * 40 minutes per question * make sure you do THREE questions 7 questions - 7 areas of management activity * Management generally * Organisation design, structures and processes * Groups and teamwork in the Organisation * Decision Making * Motivation * Leadership * Organisational Culture 2009/10 Paper 1. What are the main features of an organic organisation? In what situations might this type of organisational form NOT be appropriate? Justify your answer with reference to appropriate theory. 2. Explain why, with reference to motivation theory, Performance Related Pay may have limited impact upon an employee’s motivation at work. 3. Why is team-working considered important in modern organisations and what are the problems that may be encountered when trying to introduce such an approach? 4. (Brooks, 2006) states that “an intimate knowledge and awareness of culture should improve our ability to analyse organisational behaviour and to manage and lead” Explain why knowledge of organisational culture...
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...Managers as decision Makers The Decision Making process: ( 8 Steps) Decision making is typically described as choosing among alternatives, decision making is a process it’s not just a simple act, the eight steps of Decision making is as follows: 1- Identifying the problem: every decision start with a problem, the problem is the gap between the existing and desired condition, in the real word problem doesn’t come with neon flash, we have to identify them, what you consider it as problem might not be a problem for other manager. 2- Identifying Decision Criteria: when manager identify a problem, he must identify the decision criteria which is very important to resolving the problem, every decision maker has criteria that can guide him to the decision. 3- Allocating weights to the criteria (give points): the decision maker must weigh the items and give them the correct priority in the decision; we give the most important criteria the highest weight and so on. 4- Developing Alternatives: decision maker must list the alternatives that could work to solve the problem; in this step decision maker must be creative. 5- Analyzing Alternatives: when alternatives identified, a decision maker must evaluate each one. 6- Selecting an alternative: is choosing the best alternative. 7- Implementing the Alternative: put the decision into action by communicating with others 8- Evaluating Decision Effectiveness: evaluating the results of the...
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...Employment Conflict Management Concepts Worksheet Jacqueline Luster University of Phoenix Employment Conflict Management Concepts Worksheet |Concept |Application of Concept in Scenario |Citation of Concept |Personal Experience in your | | | |in Reading |Organization | |Three types of innovation: |In the past five years Best Snacks has |Davila, Epstein and |Working for the government does not | |Incremental, Semi-Radical, and |instituted incremental innovations that have |Shelton, 2006, p. 38|allow for much innovation at the | |Radical. “Incremental innovation |simply built on previously successful | |lower levels however; the upper | |leads to small improvements to |marketing methods such as new packaging | |management of government definitely | |existing products and business |sizes. Elizabeth Fairchild is convinced that| |put much time and money into keeping | |processes… Radical innovation results |to continue to succeed, more innovative | |up with changes to better the | |in new products or services delivered |products need to be developed. These new | |organization. Innovations of all | |in entirely new ways.” ...
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...Communication and Decision Making Communication and decision making in organizations are dependent on each other. Without good communication, there cannot be effective decision making at any level in the organization. Lapses in communication or ineffective communication will result in ineffective or incorrect decisions; if communication is ineffective or lacking in follow-up following the decision the decision may fail. Communication within the BDC organization is primarily downward and takes many forms. Due to the nature of the work performed a majority of communication is in the form of SOP’s, policies, and manuals. Other forms of communication utilized include email and group meetings, with email being by far the most common method for communicating to all members of the staff. It has been difficult to schedule regular ‘in person’ staff meetings. As a result there is little opportunity to get verbal and non-verbal feedback from staff, face to face, about issues, decisions being considered or that have been made. The following quote is relevant to the inability to effectively communicate with the BDC staff: “Great communicators are skilled at reading a person/group by sensing the moods, dynamics, attitudes, values and concerns of those being communicated with…. The message is not about the messenger; it has nothing to do with messenger; it is however 100% about meeting the needs and the expectations of those you’re communicating with.” (Myatt, 2012) Although email can...
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...INTRODUCTION TO DECISION MAKING Student`s Name Institutional Affiliation Introduction Decision making, in simplest terms, is the process of making a choice between two or more courses of action. We may find it hard, at some point, to pick one course of action over another. But unfortunately, we must decide all the time. Some of us avoid making decisions by procrastinating, in the guise of looking for more information or recommendations from other parties. Decision making takes many forms; ranging from intuition to reasoning. Other people may employ crude methods such as tossing a coin or taking a vote. Taking intuition and reasoning methods culminates in either programmed or non-programmed decisions; strategic or operational decisions and rational or intuitive decisions (Rao, 2010). Discussion. Programmed vs unprogrammed decisions. Where a manager makes decisions which he/she has made previously, those choices are referred to as “programmed decisions”. A programmed decision is taken over and over when a manager is faced with the same challenge since the course taken worked before. Such decisions are often guided by predetermined procedures, policies, calculations or data. With programmed decisions, a manager does not take long to conclude when confronted with a business-related involuntary decision since the test faced is not novel. Therefore, programmed decisions sanction a manager to make rationalized and dependably effective choices. For instance, one would immediately...
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...Homework Chapter 2 1. The elements of the classical management approaches evident at Zara International are as follows: Scientific Management Approach: Inditex select, train and support workers. Zara International hired more than 200 professionals to help them with the up to date fashions. Administrative Principles Approach: Zara International uses management functions such as planning, organizing, leading and controlling. Inditex controls design, production, distribution, and retail sales to maximize the circulation of goods. Bureaucratic Organization Approach: Inditex shows clear hierarchy, formal rules and well defined jobs for their employees. There is a clear division of labor. 2. The elements of the behavioural management approaches used by Zara’s management team are as follows: Administrative principles by Mary Parker Follett: They showed that their organization as a community, which people combine their talents and skills to work for a greater results. Human resource approach: The key factor of their organizational performance was human factor, in which they cater the public demand of having the latest fashion at reasonable prices. 3. Zara International works as a subsystem, a smaller component of a larger system. Their organization works also as an open system because they worked with Inditex which supplies them with the up to date garments to cater their customer needs. They also used contingency thinking because they recognize the needs...
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...to review and write a report based on their understanding regarding the differences of managerial function for both organizations. Students also have to identify new trends of principles of management that are important for managing the organization. Contents of the report: 1.0 Introduction Briefly explain the company’s background (name, history, and types of products or services, location, organization members) 2.0 Differences between international and local company FUNCTION OF MANAGEMENT INTERNATIONAL LOCAL COMPANY COMPANY a. Planning Types of planning programmed and non-programmed decisions b. Organizing Types of the organization Organizational structure/ chart Basic structural formats/ departmentalization (functional/ productservice/ geographic location/ customer classification department) Span of control (wide/ narrow) Locus of decision making (centralized/ decentralization) c. Leading leadership approach motivation approach communication approach INTRODUCTION TO MANAGEMENT (1101) Page 2 ASSIGNMENT 1, ASSIGNMENT 2, PRESENTATION d. Controlling control methods e. Findings and recommendation identify new trends of principles of management f. Conclusion Guidelines on report preparation Sequences of the report materials i. ii. iii. iv. v. vi. Title page (title, name of recipient and sender, date of submission) Acknowledgement Table of...
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... 9- Decision making 1-Organization structure topics to you use * basic elements of organization structure : span of control , centralization , formalization , departmentalization , authority * Organization decision model : Mechanistic model and organic model * Types of organization : boundary less organization and virtual organization 2-organization culture topics to use * Three layers of organizational culture model : Artifacts, values and assumptions * Hofsted’s four value dimensions : power distance , uncertainty avoidance , individualism and masculinity * Culture’s function * Organizational culture 3- Leadership: * Characteristics of effective leadership * Types of leadership : autocratic, bureaucratic , democratic , transactional and transformational leaderships * Leadership theories : Blanchard’s situation theory and path goal theory * Leadership model : fielder’s contingency model 4- motivation: * Motivation process * Theories of motivation: Maslow’s Hierarchy of needs, Herzberg’s motivator hygiene theory , Vroom’s expected theory and Adams’s equity theory 5-perception: * The perceptual process: observation , selection and translation * Causes of perception : stereotyping , halo effects, similar to me errors , situational perception , needs and perception and attribution theory 6- Communication: * Communication processes * Types of communication: verbal and non verbal...
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...module Chap 1 Q. 6: What is the difference in management theories presented by Fredrick Taylor and Henry Fayol? Q. 7: What are the major elements in the Classical Management, Behavioral Management, and Quantitative Management perspectives? How are these approaches similar and how are they different? Q. 8: When managers apply the Contingency Theory? Q. 9: Why has Weber’s bureaucracy developed a bad reputation? How can modern managers use bureaucracy management to streamline their organization? Q.10: What were the experiments which were conducted during the “Hawthorne Experiment”. Discuss the benefits of these experiments? Managing in a Global Environ- Chap 3 Decision-making – Chapter 7 Q. 11: What are the programmed and non-programmed decisions, and why do top mangers usually tackle the non-programmed decisions? Q. 12: What are bounded rationality, maximizing, satisficing and optimizing; and how do they influence...
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