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CHAPTER-3
Student Gain
Describe the eight steps in the decision-making process and can use it in daily life Explain the three ways through which managers make decisions. Classify decisions and decision-making conditions. Describe different decision-making styles and discuss how biases effect decision making. Identify effective decision making techniques. Recognize, analyze and use alternatives, while making decisions
Decision
Making a choice from two or more alternatives.
Why Decision-making
Decision Making
Administrative process based on decision making , decision making is based on choice whereas choice is based on alternatives.
Administrative process Decision Making Choice
Best Alternatives
Problem
A discrepancy between an existing and desired state of affairs.
The decision making process begins by determining that a problem exists: that is, there is an unsatisfactory condition. This is frequently expressed as a disparity between what is and what should be. Whether a decision is necessary or not depends on the administrators perception. What one person sees as a problem another may see as perfectly acceptable state of affairs. So, the decision process begins with administrators recognition that there is a gap between what is desired and what actually is.
Decision Criteria
Criteria that define what's important or relevant in resolving problem.
Costs that will be incurred (investments required)
Risks likely to be encountered (chance of failure) Outcomes that are desired (growth of the firm)
Important Criteria
Criterion
Carrying Weight
Warranty
Battery life Display Quality Memory and Storage
Weight
10
8 6 4 3
Toshiba protg s100 Dell inspiron 700m HP Pavilion zd8000 Apple iBook Soney vaio VGN-FS790 Gateway NX850X Toshiba QomioG15-AV501 Lenovo ThinkPad R52
The final step in decision making process takes place when all the alternatives have been enumerated and evaluated against the decision criteria. This final step is the selection of the best alternative which has quantitatively been determined.