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OLS Ch10-Decision Making
Terms in this set (21)
The job of a manager is:
to make decisions
Decision making would best be described as
an exercise in evaluating trade-offs
3 popular techniques to solve problems and make decisions:
1. satisficing model
2. implicit favorite model
3. maximizing models
-reducing a problem to a level where it can easily be understood. After the basic needs have been determined, this model suggests the alternative chosen is the first alternative that is satisfactory and sufficient enouggh to meet the criteria for the decision. WHEN WE SATISFY OUR NEEDS, WE MAY SACRIFICE MAKING THE BEST VALUE. will solve the problem, but not always come up with best solution.
Implicit Favorite Model
implies that the decision maker has already determined the requirement for a solution and has determined a course of action, however, they want to determine the decision. The favorite choice of the decision maker is detirmined and the implicit favorite will be chosen.
Maximizing or Rational Decision-Making Model
intended to allow the decision maker to find several possible solutions and to pick the best choice based on the needs and wants of the situation.
in the rational decision-making model, the decision maker goes through 6 stages
identify the need, identify the decision criteria-musts and wants, allocate weights to the want criteria, develop the alternatives, evaluate the alternatives, and select the best alternative
5 different courses of action to solve the problem
Corrective action, interim action, preventative action, contingency action, and adaptive action
solve the problem by eliminating the cause of the problem
allows the decision maker to postpone the decision until a later date. Only delays the process and isnt the final decision.
if you know certain company has laid people off with every downturn in the economy, you might not want to go to work for that company if job security is a priority. This action is aimed at never letting the cause of teh problem come into play
Gives the decision maker a backup plan before things go wrong. We backup a computer system if we know the computer will eventually crash
when companies and people learn to live with their problems and make the best of the situation
if time is not critical, group decision making should be used to make the best decision
any decision is always influenced by the decision maker's perception of reality.
Group decision techniques
interacting technique, brainstorming, nominal group technique, dephi technique, and electronic meetings
a group of people simply engages in a face-to-face discussion to make a decision. the goal of this is to allow everyone to have a say before deciding what the best option of the group is
people are encouraged to be creative and come up with every possible solution they can think up. it takes a long time to sort thru all the ideas presented
nominal group technique
members of teh group are presented with the problem and asked to write down their ideas.each member of the group is asked to present his/her idea to the group, then the ideas are record and then the group discusses the ideas. Then they are ranked by the members of the group and final decision is made by choosing one with the highest ranking.
people are not present in the same room. Problem is identitified and people are asked to generate a solution. Each person is given anonymous questionnaire that helps provide solution to the problems, then the responses are collected and distributed to the group, then they are asked to provide new solutions based on the information he/she was given. TAKES A LONG TIME
people on computers interact through technology, can be anonymous. Fast, anonymous, and honest.
THIS SET IS OFTEN IN FOLDERS WITH...
OLS Chapter 7-Understanding Others
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