IDENTIFYING ProblemsOpportunitiesCourse of action

When ?Ever changing factorsUn clear informationGood decision making is vital for good management

Types Types

Degrees of Outcome Predictability

Ambiguity●Managers know which goals they wish to achieve●Information about alternatives and future events is incomplete●Managers may have to come up with creative approaches to alternatives

Uncertainity●Managers know which goals they wish to achieve●Information about alternatives and future events is incomplete●Managers may have to come up with creative approaches to alternatives

Young Woman or O

ld

Woman

Conditions that Affect the Possibility of Decision Failure

Low HighPossibility of Failure

Certainty Risk Uncertainty Ambiguity

ProgrammedDecisions

NonprogrammedDecisions

Know when you, as the manager, can afford to put together a team

in a decision-making process, and when not

Know your personality

if the decision is up to you.

Beware of the most common decision

traps

3 Pillars of DM

DM models

Rational Administrative Political

Decision Type Programmed Non-programmed Non-programmed

Decision Outcome Optimal Satisfied Negotiated

Degree of Objectivity High Moderate Moderate to low

Summary

Political model

Decision making process

Identify and define problem

Decide on a solution

Evaluate alternatives

Develop alternatives

Establish decision criteria Weight criteria

Implement the decisions

Feedback and evaluation

Workers D M-Sharing the decision-making power with the lower ranks

Objectives

Workers Decision Making

Board level Participation

Workers Participation in Management

Job enlargement and job enrichment

Collective bargaining

Joint councils and

committees

Staff or works council

Complete control

Ownership ParticipationQuality circles

Financial Participation

TQM

Empowered Teams

Suggestion scheme

WDM

WDM

Workers Decision Making

Workers Decision Making

Workers Decision Making

Implications

Limitations