Chapter # 6

Manager Decision:- 

• ·         Identification of a problem.
  
• ·         Identification of decision criteria
  
• ·         Allocation of waits to criteria
  
• ·         Development of alternatives
  
• ·         Analysis of alternatives
  
• ·         Selection of an alternatives
  
• ·         Implementation of an alternative.
  

 

The manager as a decision maker:-

Infect making decision is a part of four management functions.

Planning:-

in planning we we have to know that

·             What are the organization long term objectives?

·         What strategies will best achieve those objective?

·          What should be organization shorter objectives be?

·         How difficult should individual goal be?

Organizing:-

·         How many employ should I have report directly to me?

·         How much centralization should there be in the organization?

·         How should job be design?

·         When should organization implement a different structure?

Leading:-

·         How do I handle those employee who appear in low motivation?

·         What is the most effective leadership style in a given situation?

·         How will specific change affect worker productivity?

·         When is the right time to stimulate conflict?

Controlling:-

·         What activities in the organization need to be controlled?

·         How should those activities be controlled?

·         When a performance is is deviation signification?

·         What type of management information system should the organization have?

Making Decision:-

Making of decision can be rationality, bound rationality and intuition.

Rationality decision making:- 

·         The problem is clear and ambiguous.

·          A single, well-defined goal is to be achieved.

·         All alternatives and consequences are known.

·         Preferences are clear.

·         Preferences are constant and stable.

·         No time or cost constraints exits.

·         Final choice will maximize payoff.

 

Bounded rationality:-

In this manager make decision rationality but limited (bounded) by their ability to process information. Suppose you are finance manager and upon graduation you want a job, preferably as a personal financial planner, with a minimum salary of $34,000 and within hundered miles of your hometown. You can accept a job offer as a business credit analyst not exactly a personal financial planner but still in the finance field at bank 50 miles from home at starting salary of $35,000. If you have done a  more comprehensive job search, you would have discover a job in personal financial planning at a trust company only 25 miles from your home town and starting at salary of behave inn bounded rationality manner by accepting it. Yes according to the assumption of perfect rationality , you didn’t maximize you’re your decision by searching lll possible alternatives and choosing the best.

Role of Intuition: -   

it’s making decision on the bases of experience with a similar type of problem or situation often can act quickly with what appears to be limited information.

Decision making conditions:-

            You are in charge of hiring new employe to wrok in your department, and on of your friends from college need a job. You think he’s minimally qualified for the position but you feel that you could find a better qualified and more experienced candidate if you kept looking. What will you job? What factors will influence your decision? What will you tell your friend?