Managerial Decision Making

Managerial Decision Making

1. Decision is a choise made from the options that has

   • Programmed decisions
     • It is a decision that includes a set of rules made for that exact problem since it is recurent
   • Nonprogrammed decisions
     • Is the response made for unique problems

2. Decision making

   • Is the process made to solve a problem

3. Certainty

   • Means that there exist all the information to make a decision

4. Risk

   • Means that there is a good amount of information whoevere each alternative has a chance

5. Uncertainty

   • Means that the manager knows their objective but the information is incomplete

6. Ambiguity

   • Is the most dificult situation, it means that the information is unclear

7. Decision making models

   • Classical model
     • Is based in rational assumptions
       • 1. The decision maker try to get the goals agreed on, their problems are well formulated and defined
       • 2. It is based on certainty, it is well informated and research for possible alternatives
       • 3. The alternatives are explored
       • 4. The decision is made racional
     • It is a normative
     • Quantitative techniques
       • Decision tree, payoff matices, break even analysis
   • Administrative model
     • Descriptive
     • Describes how managers actually takes decisions in nonprogrammed decisions
     • Bounded rationality
       • It is the limit that people has of intormation to make a decision
     • Satisficing
       • Is taking the fist option just because it satisfies a minimal amout of objectives
     • Intuition
       • Make a decision based on past experiences
     • Assmptions
       • 1. The goals are vague, managers aren't aware of every problem or opportunity
       • 2. Not always the rational procedure is used
       • 3. The alternatives are limited
       • 4. Most managers are good with satisficing rather than maximizing solutions
     • Used for uncertanity
   • Political model
     • This model is used for nonprogrammed decisions with limited information and uncernainty
     • It is related to managers with diferent goals to share information
     • Coalition
       • Is the aliance among managers to support an specific goal
     • Assumptions
       • 1. The organizations are made up of different interests, sometimes they disagree
         • 3. Managers don't have the capabilities to identify all the dimentions of a problem
         • 4. Managers try to create debates to decide
       • 2. Information is ambiguous or incomplete and this limit the atempt to make a rational decision
     • Used for conflicting goals

8. Steps

   • Recognition of Decision Requirement
     • Diagnosis and Analysis of Causes
       • Development of Alternatives
         • Selection of desire Alternatives
           • Implementation of Chosen Alternative
             • Evaluation and Feedback

9. Decision styles

   • Directive style
     • Simple solutions, made with few information
   • Analytical style
     • Complex solutions based in information
   • Conceptual style
     • Gather a lot of information, they are more social oriented
   • Behavioral style
     • They care about the people

10. Bad decision making

    • Influuenced by irt impressions
    • Justifying past decisions
    • Seeing just what you wnat to see
    • Overconfidence
    • Perpetuating status qou

11. Innovation group decision making

    • Brainstorming
    • Devil's advocate
      • A person is assigned the role of questioning the decisions made by the group
    • Point-counterpoint
    • Avoid groupthink

12. Daira Alexandra Reyes Palomares 60986

    • Daft, R. (2010). Management. Mason, OH, South-Western Cengage Learining. (Novena edición)
    • Doy mi palabra de que he realizado este trabajo con integridad académica