Random 1
Evaluating the Decision’s Effectiveness
Step 8
Allocating Weights to the Criteria
Step 3
A course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals.
Decision
This model view decision-makers as people with varying degrees of motivation who are besieged by their demand, so they seek shortcuts to find acceptable solutions.
Administrative
Example: Granting leave to employees, Developing weekly work schedules, Reordering office supplies
Programmed Decision
Assumes that decision-makers are objective, have complete information, and consider all possible alternatives and their consequences before selecting the optimal solution.
Classical
Limited information prevents the estimation of outcome probabilities for alternatives associated with the problem and may force managers to rely on intuition, hunches, and “gut feelings”.
Uncertainty
Analyzing Alternatives
Step 5
It is a condition where the future is 100 percent sure.
Certainty
A decision-making process that strives for adequate rather than perfect results.
Satisficing
A manager may understand the problem and the alternatives, but has no guarantee how each solution will work.
Risk
These unstructured problems involve ambiguities and information deficiencies and often occur as new or unexpected situations.
Uncertainty
Implementing the Alternative
Step 7
It is a strict procedure utilizing objective knowledge and logic. It involves identifying the problem to solve, gathering facts, identifying options and outcomes, analyzing them, considering all the relationships, and selecting the decision.
Rational decision making
Identifying the Problem
Step 1
Decisions that are unique and nonrecurring.
Decisions that generate unique responses.
Non-programmed Decisions
Integrated the concept of rationality and rational decisions within the whole process of discussions and prescriptions
Classical Model
Problems that are new or unusual and for which information is ambiguous or incomplete.
Problems that will require custom-made solutions.
Unstructured Problems
Straight-forward problems which can be determined and solved by repeating examinations and testing on the problems.
Structured Problems
Two models of Decision Making.
Classical and Administrative
Circumstances under which a decision is made may be characterized by risk, certainty/ uncertainty, ambiguity, etc.
Decision Making Environments