Chiang Chap 2 The Fundamental Problem of the Calculus of Variations
Fundamental of Management Chap 6
-
Upload
toan-stark -
Category
Documents
-
view
215 -
download
0
Transcript of Fundamental of Management Chap 6
-
8/18/2019 Fundamental of Management Chap 6
1/43
PowerPoint Presentation
to Accompany
Management, 10/eJohn R. Schermerhorn, Jr .
Prepared by: Jim LoPresti
University of Colorado, Boulder
Published by: John Wiley & Sons, In!
Chapter 6:The Decision Making Process
-
8/18/2019 Fundamental of Management Chap 6
2/43
Management 10/e - Chapter 6 2
Planning Ahead — Chapter 6 Study Questions
What is the role of information inthe management process?
o! "o managers #se informationto make "ecisions? What are the steps in the "ecision-
making process?
What are the c#rrent iss#es inmanagerial "ecision making?
-
8/18/2019 Fundamental of Management Chap 6
3/43
Management 10/e - Chapter 6 $
Study Question 1!hat is the role o" in"ormation inthe management process#
%nformation an" kno!le"ge & 'asiclinkages: (no!le"ge an" kno!le"ge !orkers pro)i"e a
"ecisi)e competiti)e factor in to"a*+s econom*,
(no!le"ge !orker, omeone !hose )al#e to the organi.ation
rests !ith intellect not ph*sical capa'ilities,
%ntellect#al capital, hare" kno!le"ge of a !orkforce that can 'e
#se" to create !ealth,
-
8/18/2019 Fundamental of Management Chap 6
4/43
Management 10/e - Chapter 6
Study Question 1!hat is the role o" in"ormation inthe management process#
%nformation an" kno!le"ge & 'asic
linkages cont, (no!le"ge an" intellect#al capital are
irreplacea'le organi.ational reso#rces,
The pro"#cti)it* of kno!le"ge an" kno!le"ge
!orkers "epen"s on:
Comp#ter competenc*,
%nformation competenc*,
-
8/18/2019 Fundamental of Management Chap 6
5/43
Management 10/e - Chapter 6 3
$igure 6.1 %nternal and e&ternal in"ormation needs o"an organi'ation
-
8/18/2019 Fundamental of Management Chap 6
6/43
Management 10/e - Chapter 6 6
Study Question 1!hat is the role o"in"ormation in the management process#
%mplications of %T !ithin
organi.ations:
4acilitation of comm#nication an"information sharing,
5perating !ith fe!er mi""le managers,
4lattening of organi.ational str#ct#res,
4aster "ecision making,
%ncrease" coor"ination an" control,
-
8/18/2019 Fundamental of Management Chap 6
7/43
Management 10/e - Chapter 6
Study Question 1 !hat is the role o"
in"ormation in the management process#
What is #sef#l information?Data,
7a! facts an" o'ser)ations,
%nformation, Data ma"e #sef#l for "ecision making, %nformation "ri)es management
f#nctions, Characteristics of #sef#l information:
Timel*, igh 8#alit*, Complete, 7ele)ant, 9n"erstan"a'le,
-
8/18/2019 Fundamental of Management Chap 6
8/43
Management 10/e - Chapter 6
Study Question 1!hat is the role o" in"ormation inthe management process#
%mplications of %T for relationships
!ith e;ternal en)ironment:
elps !ith c#stomer relationshipmanagement,
elps organi.ations !ith s#ppl* chain
management,elps in monitoring o#tso#rcing an"
other '#siness contracts,
-
8/18/2019 Fundamental of Management Chap 6
9/43
Management 10/e - Chapter 6 <
$igure 6.( %n"ormation technology is )rea*ing)arriers and changing organi'ations.
-
8/18/2019 Fundamental of Management Chap 6
10/43
Management 10/e - Chapter 6 10
Study Question 1 !hat is the role o" in"ormation in
the management process#
%nformation nee"s of organi.ations, %nformation e;changes !ith the
e;ternal en)ironment: =ather intelligence information,
Pro)i"e p#'lic information,
%nformation e;changes !ithin theorgani.ation: 4acilitate "ecision making,
4acilitate pro'lem sol)ing,
-
8/18/2019 Fundamental of Management Chap 6
11/43
Management 10/e - Chapter 6 11
Study Question 1 !hat is the role o" in"ormation in
the management process#
>asic information s*stem concepts:
%nformation s*stem,
9se of the latest %T to collect organi.e an"
"istri'#te "ata for #se in "ecision making,
Management %nformation *stem M%,
pecificall* "esigne" to meet the
information nee"s of managers in "ail*"ecision making,
-
8/18/2019 Fundamental of Management Chap 6
12/43
Management 10/e - Chapter 6 12
Study Question ( +ow do managers use in"ormation
to ma*e decisions#
Managerial a")antages of %T#tili.ation: Planning a")antages,
>etter an" more timel* access to #sef#linformation,
%n)ol)ing more people in planning,
5rgani.ing a")antages, More ongoing an" informe" comm#nication
among all parts of the organi.ation,
%mpro)e" coor"ination an" integration,
-
8/18/2019 Fundamental of Management Chap 6
13/43
Management 10/e - Chapter 6 1$
Study Question ( +ow do managers use in"ormation
to ma*e decisions#
Managerial a")antages of %T#tili.ation cont,: ea"ing a")antages,
%mpro)e" comm#nication !ith staff an"stakehol"ers,
(eeping o'@ecti)es clear,
Controlling a")antages,
More imme"iate meas#res of performanceres#lts, Allo!s real-time sol#tions to performance
pro'lems,
-
8/18/2019 Fundamental of Management Chap 6
14/43
Management 10/e - Chapter 6 1
$igure 6. -he manager as an in"ormation
processing ner/e center.
-
8/18/2019 Fundamental of Management Chap 6
15/43
Management 10/e - Chapter 6 13
Study Question ( +ow do managers usein"ormation to ma*e decisions#
A performance "eficienc* Act#al performance 'eing less than "esire"
performance,
A performance opport#nit* Act#al performance 'eing 'etter than "esire"performance,
Pro'lem sol)ing The process of i"entif*ing a "iscrepanc*
'et!een act#al an" "esire" performance an"taking action to resol)e it,
A "ecision A choice among possi'le alternati)e co#rse of
action,
-
8/18/2019 Fundamental of Management Chap 6
16/43
Management 10/e - Chapter 6 16
Study Question ( +ow do managers use
in"ormation to ma*e decisions#
Pro'lem-sol)ing approaches or st*les: Pro'lem a)oi"ers,
%nacti)e in information gathering an" sol)ing
pro'lems,
Pro'lem sol)ers, 7eacti)e in gathering information an" sol)ing
pro'lems,
Pro'lem seekers, Proacti)e in anticipating pro'lems an"
opport#nities an" taking appropriate action to gain
an a")antage,
-
8/18/2019 Fundamental of Management Chap 6
17/43
Management 10/e - Chapter 6 1
Study Question ( +ow do managers use
in"ormation to ma*e decisions#
*stematic )ers#s int#iti)e thinking, *stematic thinking approaches pro'lems in a
rational step-'*-step an" anal*tical fashion,
%nt#iti)e thinking approaches pro'lems in a
fle;i'le an" spontaneo#s fashion,
M#lti"imensional thinking applies 'oth int#iti)e
an" s*stematic thinking,
Bffecti)e m#lti"imensional thinking re8#iresskill at strategic opport#nism,
-
8/18/2019 Fundamental of Management Chap 6
18/43
Management 10/e - Chapter 6 1
Study Question ( +ow do managers use
in"ormation to ma*e decisions#
Cogniti)e st*les, ensation Thinkers emphasi.e the impersonal
rather than the personal an" take a realistic
approach to pro'lem sol)ing,
%nt#iti)e Thinkers are comforta'le !ith a'straction
an" ten" to 'e i"ealistic, spontaneo#s fashion,
%nt#iti)e 4eelers prefer 'roa" an" glo'al iss#es an"
are comforta'le !ith intangi'les,
ensation 4eelers emphasi.e anal*sis an" h#manrelations an" ten" to 'e realistic an" prefer facts,
-
8/18/2019 Fundamental of Management Chap 6
19/43
Management 10/e - Chapter 6 1<
Study Question ( +ow do managers use
in"ormation to ma*e decisions#
Programme" "ecisions.
Appl* sol#tions that are rea"il* a)aila'le from
past e;periences to sol)e str#ct#re" pro'lems, tr#ct#re" pro'lems are ones that are familiar
straightfor!ar" an" clear !ith respect to
information nee"s,
>est applie" to ro#tine pro'lems that can 'e
anticipate",
-
8/18/2019 Fundamental of Management Chap 6
20/43
Management 10/e - Chapter 6 20
Study Question ( +ow do managers use
in"ormation to ma*e decisions#
onprogramme" "ecisions.
De)elop no)el sol#tions to meet the
"eman"s of #ni8#e sit#ation that
present #nstr#ct#re" pro'lems,
9nstr#ct#re" pro'lems are ones that
are f#ll of am'ig#ities an" information
"eficiencies,
Commonl* face" '* higher-le)el
management,
-
8/18/2019 Fundamental of Management Chap 6
21/43
Management 10/e - Chapter 6 21
Study Question ( +ow do managers use
in"ormation to ma*e decisions#
Crisis "ecision making, A crisis in)ol)es an #ne;pecte" pro'lem
that can lea" to "isaster if not resol)e"
8#ickl* an" appropriatel*,7#les for crisis management:
4ig#re o#t !hat is going on,7emem'er that spee" matters,
7emem'er that slo! co#nts too,7espect the "anger of the #nfamiliar,al#e the skeptic,>e rea"* to Efight fire !ith fire,F
-
8/18/2019 Fundamental of Management Chap 6
22/43
Management 10/e - Chapter 6 22
Study Question ( +ow do managers use
in"ormation to ma*e decisions#
Decision en)ironments: Certain en)ironments,
5ffer complete information a'o#t possi'le actionalternati)es an" their o#tcomes,
7isk en)ironments, ack complete information a'o#t action
alternati)es an" their conse8#ences '#t offersome estimates of pro'a'ilities of o#tcomes forpossi'le action alternati)es,
9ncertain en)ironments %nformation is so poor that pro'a'ilities cannot 'e
assigne" to likel* o#tcomes of kno!n actionalternati)es,
-
8/18/2019 Fundamental of Management Chap 6
23/43
Management 10/e - Chapter 6 2$
$igure 6.0 -hree en/ironments "or managerial
decision ma*ing and pro)lem sol/ing.
-
8/18/2019 Fundamental of Management Chap 6
24/43
Management 10/e - Chapter 6 2
Study Question !hat are the steps in the
decisionma*ing process#
4i)e-step "ecision-making process:
%"entif* an" "efine the pro'lem,
=enerate an" e)al#ate possi'lesol#tions,
Choose a preferre" co#rse of action
an" con"#ct the Eethics "o#'le check,F
%mplement the "ecision,
B)al#ate res#lts,
-
8/18/2019 Fundamental of Management Chap 6
25/43
Management 10/e - Chapter 6 23
$igure 6. Steps in managerial decision ma*ing andpro)lem sol/ing.
-
8/18/2019 Fundamental of Management Chap 6
26/43
Management 10/e - Chapter 6 26
Study Question !hat are the steps in the
decisionma*ing process#
tep 1 & i"entif* an" "efine thepro'lem, 4oc#ses on information gathering
information processing an" "eli'eration,Decision o'@ecti)es sho#l" 'e esta'lishe",
Common mistakes in "efining pro'lems: Defining the pro'lem too 'roa"l* or too
narro!l*, 4oc#sing on s*mptoms instea" of ca#ses,
Choosing the !rong pro'lem,
-
8/18/2019 Fundamental of Management Chap 6
27/43
Management 10/e - Chapter 6 2
Study Question !hat are the steps in the
decisionma*ing process#
tep 2 & generate an" e)al#atepossi'le sol#tions, Potential sol#tions are form#late" an"
more information is gathere" "ata areanal*.e" the a")antages an""isa")antages of alternati)e sol#tionsare i"entifie"
Approaches for e)al#ating alternati)es: takehol"er anal*sis, Cost-'enefit anal*sis,
-
8/18/2019 Fundamental of Management Chap 6
28/43
Management 10/e - Chapter 6 2
Study Question !hat are the steps in the
decisionma*ing process#
tep 2 & generate an" e)al#atepossi'le sol#tions cont,, Criteria for e)al#ating alternati)es:
>enefits, Costs, Timeliness, Accepta'ilit*, Bthical so#n"ness,
Common mistakes: electing a partic#lar sol#tion too 8#ickl*, Choosing a con)enient alternati)e that ma* ha)e
"amaging si"e effects or ma* not 'e as goo" as otheralternati)es,
-
8/18/2019 Fundamental of Management Chap 6
29/43
Management 10/e - Chapter 6 2<
Study Question !hat are the steps in the
decisionma*ing process#
tep $ & "eci"e on a preferre"
co#rse of action,
Classical "ecision mo"el, Managers act rationall* in a certain !orl",
Managers face clearl* "efine" pro'lems
an" ha)e complete kno!le"ge of all
possi'le alternati)es an" theirconse8#ences,
7es#lts in an optimi.ing "ecision,
-
8/18/2019 Fundamental of Management Chap 6
30/43
Management 10/e - Chapter 6 $0
Study Question !hat are the steps in the
decisionma*ing process#
tep $ & "eci"e on a preferre"co#rse of action cont,,>eha)ioral "ecision mo"el
Managers act in terms of !hat the*percei)e a'o#t a gi)en sit#ation,
7ecogni.es limits to h#man information-processing capa'ilities, Cogniti)e limitations, >o#n"e" rationalit*, 7es#lts in a satisficing "ecision,
-
8/18/2019 Fundamental of Management Chap 6
31/43
Management 10/e - Chapter 6 $1
Study Question !hat are the steps in the
decisionma*ing process#
tep & implement the "ecisionsol#tion,
%n)ol)es taking action to make s#re the
sol#tion "eci"e" #pon 'ecomes a realit*,
Managers nee" to ha)e !illingness an"
a'ilit* to implement action plans,
ack-of-participation error sho#l" 'e
a)oi"e",
-
8/18/2019 Fundamental of Management Chap 6
32/43
Management 10/e - Chapter 6 $2
$igure 6.6 2i""erences in the classical and )eha/ioral
models o" managerial decision ma*ing.
-
8/18/2019 Fundamental of Management Chap 6
33/43
Management 10/e - Chapter 6 $$
Study Question !hat are the steps in the
decisionma*ing process#
tep 3 & e)al#ate res#lts,
%n)ol)es comparing act#al an" "esire"
res#lts,
Positi)e an" negati)e conse8#ences of
chosen co#rse of action sho#l" 'e
e;amine",
%f act#al res#lts fall short of "esire"res#lts the manager ret#rns to earlier
steps in the "ecision-making process,
-
8/18/2019 Fundamental of Management Chap 6
34/43
Management 10/e - Chapter 6 $
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
T*pes of he#ristics for simplif*ing"ecision making: A)aila'ilit* he#ristic,
People #se information Erea"il* a)aila'leF from
memor* as a 'asis for assessing a c#rrent e)ent orsit#ation,
7epresentati)eness he#ristic, People assess the likelihoo" of something happening
'ase" #pon its similarit* to a stereot*pe" set ofocc#rrences,
Anchoring an" a"@#stment he#ristic, People make "ecisions 'ase" on a"@#stments to a
pre)io#sl* e;isting )al#e or starting point,
-
8/18/2019 Fundamental of Management Chap 6
35/43
Management 10/e - Chapter 6 $3
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
4raming Brror, The ten"enc* to e)al#ate an" resol)e a
pro'lem in the conte;t in !hich it is
percei)e" G either positi)el* ornegati)el*,
Confirmation Brror,
the ten"enc* to foc#s onl* oninformation that confirms a "ecisionalrea"* ma"e,
-
8/18/2019 Fundamental of Management Chap 6
36/43
Management 10/e - Chapter 6 $6
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
Bscalating commitment, The ten"enc* to increase effort an" appl* more
reso#rces to a co#rse of action that is not
!orking, Wa*s to a)oi" the escalation trap:
et a")ance limits an" stick to them,
Make *o#r o!n "ecisions,
Caref#ll* "etermine !h* *o# are contin#ing aco#rse of action,
7emin" *o#rself of the costs,
Watch for escalation ten"encies,
-
8/18/2019 Fundamental of Management Chap 6
37/43
Management 10/e - Chapter 6 $
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
Creati)e Decision making:Creati)it* is the generation of a no)el
i"ea or #ni8#e approach that sol)es a
pro'lem or crafts an opport#nit*, creati)it* is more likel* !hen "ecision
makers are highl* task moti)ate",
5rgani.ations sho#l" create an
en)ironment that s#pports an"enco#rages creati)it*,
-
8/18/2019 Fundamental of Management Chap 6
38/43
Management 10/e - Chapter 6 $
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
Potential a")antages of gro#p"ecision making:=reater amo#nts of information
kno!le"ge an" e;pertise are a)aila'le,More action alternati)es are
consi"ere", %ncrease" #n"erstan"ing an"
acceptance of o#tcomes, %ncrease" commitment to implement
final plans,
-
8/18/2019 Fundamental of Management Chap 6
39/43
Management 10/e - Chapter 6 $<
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
Potential "isa")antages of gro#p
"ecision making:
Press#re to conform,
Minorit* "omination ma* occ#r,
Decision making takes longer,
-
8/18/2019 Fundamental of Management Chap 6
40/43
Management 10/e - Chapter 6 0
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
When gro#p "ecision making !orks
'est:
%n"i)i"#al lacks e;pertise or information, Pro'lem is #nclear an" har" to "efine,
Acceptance '* others nee"e" for effecti)e
implementation
Time is s#fficient for gro#p in)ol)ement,
-
8/18/2019 Fundamental of Management Chap 6
41/43
Management 10/e - Chapter 6 1
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
Bthical "ecision making,An* "ecision sho#l" meet Eethics
"o#'le check,F mentione" in step $ of
the "ecision-making process, o! !o#l" % feel if m* famil* fo#n" o#t
a'o#t this "ecision?
o! !o#l" % feel if this "ecision !ere
p#'lishe" in the local ne!spaper? An* "iscomfort in ans!ering these
8#estions in"icates the "ecision hasethical shortcomings,
-
8/18/2019 Fundamental of Management Chap 6
42/43
Management 10/e - Chapter 6 2
Study Question 0 !hat are the current issues in
managerial decision ma*ing#
Bthical "ecision making cont,Consi"ering the ethics of a propose"
"ecision ma* res#lt in 'etter "ecisions
an" pre)ention of costl* litigation, Bthical "ecisions satisf* the follo!ing
criteria: 9tilit*,
7ights, H#stice, Caring,
-
8/18/2019 Fundamental of Management Chap 6
43/43
COPYRIGHT
Cop*right 200< I Hohn Wile* J ons %nc, All rights
reser)e", 7epro"#ction or translation of this !ork 'e*on"that name" in ection 11 of the 9nite" tates Cop*rightAct !itho#t the e;press !ritten permission of thecop*right o!ner is #nla!f#l, 7e8#ests for f#rtherinformation sho#l" 'e a""resse" to the PermissionsDepartment Hohn Wile* J ons %nc, The p#rchaser ma*
make 'ack-#p copies for his/her o!n #se onl* an" not for"istri'#tion or resale, The P#'lisher ass#mes noresponsi'ilit* for errors omissions or "amages ca#se"'* the #se of these programs or from the #se of theinformation containe" herein,