MGMT-121 Chapter Notes - Chapter 8: Normal-Form Game, Randomness, Satisficing
28 Jun 2018
School
Department
Course
Professor
Chapter 8
Decision Making
Copyright © 2016 Pearson Canada Inc. 7-1
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Learning Outcomes:
1. Describe the eight steps in the decision-making
process.
2. Explain the four ways managers make decisions.
3. Classify decisions and decision-making
conditions.
4. Describe different decision-making styles and
discuss how biases affect decision making.
5. Identify effective decision-making techniques.
Copyright © 2016 Pearson Canada Inc. 7-2
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find more resources at oneclass.com
The Decision-Making Process
Decision:
Making a choice from two or more alternatives.
Copyright © 2016 Pearson Canada Inc. 7-3
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find more resources at oneclass.com
Document Summary
Learning outcomes: describe the eight steps in the decision-making process, explain the four ways managers make decisions, classify decisions and decision-making conditions, describe different decision-making styles and discuss how biases affect decision making. Making a choice from two or more alternatives. Identifying a problem, decision criteria & allocating weights to the criteria. Developing, analyzing, & selecting an alternative that can resolve the problem. A discrepancy between an existing and desired state of affairs. Characteristics of problems: a problem is recognized by awareness, there is pressure to solve the problem, the manager must have the authority, information, or resources needed to solve the problem. Criteria that define what is relevant in making a decision: costs that will be incurred (investments required, risks likely to be encountered (chance of failure, outcomes that are desired (growth of the firm) Assigning a weight to each item places the items in the correct priority order of their importance in the decision-making process.
