MGCR 222 Lecture 11: Chapter 11

• School: McGill University
• Department: Management Core
• Course: MGCR 222
• Professor: Allan Greer

Document Summary

Decision making is the process of developing a commitment to some course of action. It involves solving a problem or a gap between an existing and a desired state. It usually consists of a choice among several alternatives, a process that involves more than a final choice and a commitment of resources. Problems can be well-structured, meaning that the existing state and the desired state are clear and how to get from one to the other is fairly obvious. They tend to be simple problems with solutions that are not controversial. In these cases, programmed decision making (standardized solutions) should be used. Examples include accepting credit card applications or choosing a delivery route. Problems can also be ill-structured, meaning that the existing and desired states are unclear and how to get from one to another is unknown. They tend to be unusual and have not been encountered before. They usually involve risky decisions and stimulate political considerations.