《管理学原理》课程PPT教学课件（英文）2-2 Cap5 Decisions-making

Chapter 5 Decisions-makingThe decision-making processThe rational modelThe common errors in the decision-makingTypes of problems, decisions and level in theorganizationDecision-making stylesMaking-decision in groups

Chapter 5 Decisions-making The decision-making process The rational model The common errors in the decision-making Types of problems, decisions and level in the organization Decision-making styles Making-decision in groups

Exhibit 5-1 The Decision-MakingProcessDevelopmentAnalysisAllocationIdentificationIdentificationofofofweightsofaofdecisionTo criteriaalternativesalternativesproblemcriteriaSelectionImplementationEvaluationof anoftheof decisionalternativealternativeeffectiveness

Exhibit 5-1 The Decision-Making Process Identification of a problem Identification of decision criteria Allocation of weights To criteria Development of alternatives Analysis of alternatives Selection of an alternative Implementation of the alternative Evaluation of decision effectiveness

The problemA single,AllalternativesPreferencesPreferencesNo timeFinal choiceandis clear andwill maximizewell-definedare clearare constantorcostand stableconstraintseconomicunambiguousgoalistoconsequencesexistpayoffbe achievedare knownLeadtoRational Decision MakingExhibit 5-2Assumptions of Rationality

The problem A single, All alternatives Preferences Preferences No time Final choice is clear and well-defined and are clear are constant or cost will maximize unambiguous goal is to consequences and stable constraints economic be achieved are known exist payoff Lead to Rational Decision Making Exhibit 5-2 Assumptions of Rationality

Bounded RationalityThis is the behavior that people constructsimplified models that extract the essentialfeatures from problems without capturingall oftheir complexities in order todeciderationally

Bounded Rationality This is the behavior that people construct simplified models that extract the essential features from problems without capturing all of their complexities in order to decide rationally

Availability heuristicThis is the tendency to base judgments on informationthatisreadily availableRepresentative heuristicThis is the tendency for people to base judgments ofprobability on things with which they are familiarEscalationof commitmentIt refers to an increased commitment to aprevious decision despite negative information

Availability heuristic This is the tendency to base judgments on information that is readily available. Representative heuristic This is the tendency for people to base judgments of probability on things with which they are familiar. Escalation of commitment It refers to an increased commitment to a previous decision despite negative information

Exhibit 5-3 Types of Problems,Decisionsand Level in the OrganizationTopIll-structuredNonprogrammedLevel indecisionsType oforganizationproblemProgrammeddecisionsWell-structuredLower

Exhibit 5-3 Types of Problems , Decisions and Level in the Organization Level in organization Ill-structured Type of problem Well-structured Top Lower Programmed decisions Nonprogrammed decisions

TypesofProblemsWell-structured problems are problems that arestraightforward.familiar to the decision makerand the goal is clear, the information about themarecompleteIll-structure problems are new, or unusual, andinformation about such problems is ambiguous onincomplete

Types of Problems Well-structured problems are problems that are straightforward, familiar to the decision maker, and the goal is clear, the information about them are complete. Ill-structure problems are new, or unusual, and information about such problems is ambiguous or incomplete

Types of DecisionsProgrammed decision is a repetitivedecision that can be handle by a routineapproach. (Procedure, rule, policy)Non-programmed decision is a decisionthat must be custom-made to solve uniqueand non-recurring problems

Types of Decisions Programmed decision is a repetitive decision that can be handle by a routine approach. (Procedure, rule, policy) Non-programmed decision is a decision that must be custom-made to solve unique and non-recurring problems

Exhibit 5-4 Decision-MakingHighAnalyticConceptualDirectiveBehavioralLowIntuitiveRationWay of Thinking

Exhibit 5-4 Decision-Making High Low Ration Intuitive Analytic Conceptual Directive Behavioral Way of Thinking Tolerance for Ambiguity

The Advantages and Disadvantages ofGroup Decision MakingAdvantages-Morecompleteinformation-Morealternatives-Increasing acceptance of a solutionIncreasinglegitimacy and democracyDisadvantages-Time-consuming-Minority dominationPressurestoconform (groupthink)Ambiguous responsibility

The Advantages and Disadvantages of Group Decision Making ▪More complete information ▪More alternatives ▪Increasing acceptance of a solution ▪Increasing legitimacy and democracy Advantages ▪Time-consuming ▪Minority domination ▪Pressures to conform (groupthink) ▪Ambiguous responsibility Disadvantages