Administrative Decision Making .


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Managerial Decision Making. Chapter 9. Managerial Decision Making. Decision making is not easy It must be done amid ever-changing factors unclear information conflicting points of view. Manager’s Challenge: Tupperware. Managerial Decision Making. Topics Chapter 9.
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Administrative Decision Making Chapter 9

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Managerial Decision Making Decision making is difficult It must be done in the midst of continually changing components misty data clashing perspectives Manager\'s Challenge: Tupperware

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Managerial Decision Making Topics Chapter 9 Decision Characteristics Decision-production Models Steps Executives Take Making Important Decisions Participative Decision Making Techniques for Improving Decision Making in Today\'s Organizations

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Decisions and Decision Making Decision = decision produced using accessible choices Decision Making = procedure of distinguishing issues and openings and settling them

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Categories of Decisions Programmed Decisions Situations happened frequently enough to empower choice standards to be created and connected later on Made in light of repeating hierarchical issues Nonprogrammed Decisions – because of one of a kind, inadequately characterized and generally unstructured, and have critical results to the association Ethical Dilemma: The No-Show Consultant

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Decisions and Decision Making Many choices that supervisors manage each day include in any event some level of vulnerability and require nonprogrammed basic leadership May be hard to make Made in the midst of changing elements Information might be indistinct May need to manage clashing perspectives

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Certainty, Risk, Uncertainty, Ambiguity Certainty all the data the chief needs is completely accessible Risk choice has obvious objectives great data is accessible future results connected with every option are liable to chance Uncertainty administrators know which objectives they wish to accomplish data about options and future occasions is fragmented directors may need to concoct inventive ways to deal with options Ambiguity by a long shot the most troublesome choice circumstance objectives to be accomplished or the issue to be fathomed is hazy choices are hard to characterize data about results is inaccessible

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Organizational Problem Low Possibility of Failure High Certainty Risk Uncertainty Ambiguity Programmed Decisions Nonprogrammed Decisions Problem Solution Conditions that Affect the Possibility of Decision Failure

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Selecting a Decision Making Model Depends on the administrator\'s close to home inclination Whether the choice is customized or non-modified Extent to which the choice is portrayed by hazard, instability, or equivocalness

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Three Decision-Making Models Classical Model Administrative Model Political Model

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Classical Model Logical choice in the association\'s best financial interests Assumptions Decision producer works to achieve objectives that are known and settled upon Decision creator makes progress toward state of assurance – accumulates finish data Criteria for assessing choices are known Decision producer is sound and uses rationale Normative = depicts how a chief ought to and gives rules to achieving a perfect choice

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Administrative Model Herbert A. Simon How nonprogrammed choices are made- - vulnerability/vagueness Two ideas are instrumental in molding the authoritative model Bounded objectivity : individuals have breaking points or limits on how balanced they can satisfice : implies that chiefs pick the principal arrangement elective that fulfills insignificant choice criteria

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Administrative Model How nonprogrammed choices are made- - instability/equivocalness Managers really settle on choices in troublesome circumstances portrayed by non-modified choices, instability, and vagueness Decision objectives frequently are obscure, clashing and need accord among administrators; Rational strategies are not generally utilized Managers\' scans for choices are constrained Managers settle for a satisficing as opposed to an augmenting arrangement instinct, looks to past experience Descriptive = how directors really decide - not how they ought to

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Political Model Closely takes after the genuine environment Closely takes after the genuine environment in which most supervisors and leaders work Useful in settling on non-customized choices Decisions are mind boggling Disagreement and struggle over issues and arrangements are typical Coalition = casual partnership among oversees who bolster a particular objective

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Characteristics of Classical, Political, and Administrative Decision Making Models Classical Model Administrative Model Political Model Clear-cut issue and goals Vague issue and goals Pluralistic; clashing objectives Condition of certainty Condition of uncertainty Condition of instability/vagueness Full data about Limited data about Inconsistent perspectives; questionable options and their results Alternatives and their results data Rational decision by individual Satisficing decision for settling Bargaining and dialog among for expanding outcomes issue utilizing intuition coalition individuals

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Six Steps in the Managerial Decision-Making Process   Evaluation and Feedback Recognition of Decision Requirement  Implementation of Chosen Alternative Diagnosis and Analysis of Causes Decision-Making Process  Selection of Desired Alternative Development of Alternatives  

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Diagnosis and Analysis of Causes Diagnosis = examine hidden causal elements connected with the choice circumstance Managers commit an error on the off chance that they hop into producing choices without first investigating the reason for the issue all the more profoundly

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Underlying Causes - Kepner/Tregoe What is the condition of disequilibrium influencing us? At the point when did it happen? Where did it happen? How could it happen? To whom did it happen? What is the direness of the issue? What is the interconnectedness of occasions? What result originated from which action?

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Selection of Desired Alternatives Risk Propensity = readiness to attempt hazard with the chance of picking up an expanded result Implementation = utilizing administrative, managerial, and powerful capacities to make an interpretation of the picked elective vigorously

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Decision Styles Differences among individuals as for how they see issues and settle on choices Not all administrators settle on choices a similar Directive style Analytical style Conceptual style Behavioral style

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Personal Decision Framework Situation: Programmed/non-customized Classical, regulatory, political Decision steps Personal Decision Style: Directive Analytical Conceptual Behavioral Decision Choice: Best Solution to Problem

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Directive Style People who lean toward straightforward, obvious answers for issues Make choices rapidly May consider just a single or two choices Efficient and reasonable Prefer standards or techniques

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Analytical Style Complex arrangements in view of as much information as they can accumulate Carefully consider choices Base choice on target, sound information from administration control frameworks and different sources Search for most ideal choice in view of data accessible

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Conceptual Style Consider a wide measure of data More socially situated than scientific style Like to converse with others about the issue and conceivable arrangements Consider numerous wide choices Relay on data from individuals and frameworks Solve issues innovatively

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Behavioral Style Have a profound sympathy toward others as people Like to converse with individuals one-on-one Understand their emotions about the issue and the impact of a given choice upon them Concerned with the self-improvement of others May settle on choices to help other people accomplish their objectives Experiential Exercise: What\'s Your Personal Decision Style?

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Participation in Decision Making Vroom-Jago Model Helps gage the suitable measure of cooperation for subordinates in process Leader Participation Styles Five levels of subordinate support in basic leadership going from profoundly dictatorial to very vote based

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Participation in Decision Making Vroom-Jago Model Diagnostic Questions Decision investment relies on upon the reactions to seven analytic inquiries concerning the issue the required level of choice quality the significance of having subordinates focus on the choice

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Seven Leader Diagnostic Questions How huge is the choice? How essential is subordinate duty? What is the level of the pioneer\'s mastery? In the event that the pioneer were to settle on the choice alone at what level would subordinates be focused on the choice? What level is the subordinate\'s support for the group or association\'s targets? What is the part\'s level of learning or ability with respect to the issue? How gifted or conferred are gathering individuals to cooperating?

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New Decision Approaches for Turbulent Times New Decision Approaches for Turbulent Times Practice the Five Whys Brainstorming Know When to Bail Engage in Rigorous Debate Learn, Don\'t Punish

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