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Presented By: Siddhartha Kamat-251075 Gourav Kapoor-251076 Vaibhav Kapoor-251077 Rohit Kaushik-251079
Managerial Decision Making Types of Decision Making Model of Decision Making Decision Making Process How to make Decisions better? Examples of Decision Making with Small Cases
Decision making: the process by which managers respond to opportunities and threats by analyzing options, and making decisions about goals and courses of action. Decisions in response to opportunities: managers respond to ways to improve organizational performance. Decisions in response to threats: occurs when managers are impacted by adverse events to the organization.
Programmed Decisions: routine, almost automatic process. Managers have made decision many times before. There are rules or guidelines to follow. Example: Deciding to reorder office supplies. Non-programmed Decisions: unusual situations that have not been often addressed. No rules to follow since the decision is new. These decisions are made based on information, and a mangers intuition, and judgment. Example: Should the firm invest in a new technology?
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Start by writing down your initial assessment of the problem. Dissect the problem. What triggered this problem (as Ive assessed it)? Why am I even thinking about solving this problem? What is the connection between the trigger and the problem?
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Write down all the concerns you hope to address through your decision. Convert your concerns into specific, concrete objectives. Separate ends from means to establish your fundamental objectives. Clarify what you mean by each objective. Test your objectives to see if they capture your interests. Start by writing down your initial assessment of the problem. Dissect the problem. What triggered this problem? Why am I even thinking about solving this problem? What is the connection between the trigger and the problem?
Generate as many alternatives as you can yourself. Expand your search, by checking with other people, including experts. Look at each of your objectives and ask, how? Know when to stop.
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Mentally put yourself into the future. Process Analysis Solving problems by thinking through the process involved from beginning to end, imagining, at each step, what actually would happen. Eliminate any clearly inferior alternatives. Organize your remaining alternatives into a table (matrix) that provides a concise, bird's-eye view of the consequences of pursuing each alternative.
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Under perfect conditions, simply review the consequences of each alternative, and choose the alternative that maximizes benefits.
In practice, making a decisioneven a relatively simple one like choosing a computerusually cant be done so accurately or rationally.
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Quantify realities by sizing up your options, and taking into consideration the relative importance of each of your objectives.
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Knowing when to quit is sometimes the smartest thing a manager can do.
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Cases
Case on SPCL
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