MAKING BUSINESS DECISIONS

MAKING BUSINESS DECISIONS

1. TYPE OF DECISIONS AND PROBLEMS

   • The decision is that choice that is subsequently made to choose from the different possibilities
   • Decision making is the process of recognizing problems and opportunities as well as giving them a solution.
   • The scheduled decision is the decision that is chosen according to the event that is presented as well as the frequency necessary to enable the rules of a decision to be developed and managed to apply in the future.

2. FACE CERTAINTY AND UNCERTAINTY

   • Certainty refers to an event where the information required by the decision maker is available
   • Risks are the moments in which the decision despite having its objectives set, the results may have some danger
   • Uncertainty is that event where you have the objectives to meet however your alternatives are not complete
   • Ambiguity is when it is more complicated to define possible solutions

3. DECISION MAKING MODELS

   • The administrative model is responsible for describing how managers usually make decisions
   • Descriptive refers to the way in which managers make decisions according to a theoretical ideal
   • Limited rationality is referred to when subjects have time and cognitive capacity to process only a limited amount of information

4. DECISION MAKING

   • 1. Recognition of the decision requirement
     • 2. Diagnosis and analysis of the cause.
       • 3. Development of alternatives.
         • 4. Solution of the desired alternative.
           • 5. Implementation of the chosen alternative
             • 6. Evaluation and feedback.

5. PERSONAL DECISION FRAMEWORK

   • Situation
     • Personal decision style
       • Choice of decision