BY

SHITANSHU SHARMA
ROLL NO.28
MBA 1ST SEM
 BIBLIOGRAPHY

 DR N.VASISHTH.2002.TAXMANN STUDENTS GUIDE TO

MANAGEMENT PP 132-156
 R.SATYA RAJU A. PARTHASARATHY.2000.MANAGEMENT TEXT
AND CASES PP 57-65
 MS-1 MANAGEMENT FUNCTIONS AND BEHAVIOUR.IGNOU
SCHOOL OF MANAGEMENT STUDIES
 HAROLD KOONTZ.HEINZ WEIHRICH.2006.ESSENTIALS OF
MANAGEMENT PP-104-111
 NAVIN MATHUR-2004.MANAGEMENT GURUS.IDEAS AND
THOUGHTS P-279
 REFERENCES
 http://www.2.tech.purdue.edu/ols/courses/ols252/slides/chapter10.ppt
 http://www.virtualsalt.com/crebook5.htm
 http://www.dcs.gla.ac.uk/~barry/papers/decisionmaking.pdf
 http://en.wikipedia,org/wiki/satisficing
 http://faculty.babson.edu/krollag/org-sitte/encydop/simon.html
 http://fecolumnists.expressindia.com/full-column.php?content_id=39524
 http://www.ihis.aau.dk/~baca/ciiw?dkfrance1.pdf
 http://www.implementor.com/implementor/web/step4_c/persuade-
decnonrat.htm
 http://sfb04.uni-mannheim.de/glossary/rational.htm
 www.decisionanalyst.com/downloads/consumerdecisionmaking.pdf
 www.lib.umd.edu/groups/learning/decision-makingmodel.pdf
MANAGERIAL DECISION
MAKING

WHAT

WHO

WHEN, WHERE, HOW

DECISION MAKING IS
IDENTIFY & DEFINE

ALTERNATIVE SOLUTION

EVALUATION & SELECTION

 1 Situations in Life

2 Problems
3 Priority Problem

4
Causes for Problem
Make
A
Decision 5 Most Likely Cause
6 Alternatives

Determining
the need for
a decision
 DECISION MAKING SITUATIONS

INCREASING KNOWLEDGE

LACK
COMPLETE
OF
KNOWLEDGE CERTAINITY RISK UNCERTAINITY
KNOWLEDGE
DECREASING KNOWLEDGE
FEATURES CERTAINITY RISK UNCERTAINITY

AVAILABITY OF COMPLETE ENOUGH NO

INFORMATION INFORMATION INFORMATION INFORMATION
ABOUT FUTURE
DEGREE OF HIGH MODERATE LOW
RELIABILITY OF
INFORMATION
DEGREE OF HIGH MODERATE LOW
PREDICTIBITY ABOUT
FUTURE

KNOWLEDGE ABOUT KNOWN FAIRLY KNOWN NOT KNOWN

PROBABILITY OF
OUTCOMES OF
DECISIONS
DECISION MAKING STRATEGIES

OPTIMIZING

SATISFICING

IMPLICITY
 A GENERAL MODEL

PROBLEM PERCEPTION CONTROL

PROBLEM IDENTIFICATION IMPLEMENTATION

PROBLEM FORMULATION START OF OPERATION

SEARCH FOR ALTERNATIVES CHOICE OF ALTERNATIVES

EVALUATION OF ALTERNATIVES
 ECONOMIC MAN MODEL
ASSUMPTIONS

 PROBLEM CLARITY
 KNOWN OPTIONS
 CLEAR PREFERANCES
 CONSTANT PREFERANCES
 NO TIME OR COST CONSTRAINTS
 MAXIMUM PAYOFFS
 ECONOLOGIC MODEL
SET GOAL
OR
DEFINE
PROBLEM

SELECT ACT
DISCOVER BEST OR
PROBLEM ALTERNATIVE IMPLEMENT
DECISIONS

DEVELOP
CRITERION
DETERMINE
DEVELOP ALL
ALL OUTCOMES
ALTERNATIVES
 USE OF MODEL IN CAREER SELECTION
COMPUTER
PSYCHOLOGY
WEIGHTS     IDEAL SCIENC
    (CAREER)  SELECTION CRITERIA   
E
Income  9  +5 (45)  +2 (18) +4 (36)
Vacation  7  +5 (35 )  +5 (35)  +2 ( 14)
Helping Others  10  +5 ( 50)  +4 ( 40)  +4 ( 40)
Future job options  8  +5 ( 50)  +3 ( 24)  +4 (32)
Supply/demand  6  +5 ( 30)  -1 ( -6)  0 ( 0)
Working hours  3  +5 ( 15)  +4 ( 12)  +3 ( 9)
Opportunity to teach others  9  +5 ( 45)  +5 ( 45)  +4 (36)
Helping personal interactions  10  +5 ( 50)  +5 ( 50)  +1 ( 10)
Security/retirement plans  5  +5 ( 25)  +4 ( 20)  +3 ( 15)
Enjoyment socialize with peers  5  +5 ( 25)  +4 ( 20)  +4 ( 20)
Opportunity to make own decisions  9  +5 ( 45)  +4 ( 36)  +3 ( 27)
Freedom for personal life as want  8  +5 ( 40)  +5 ( 40)  +5 ( 40)
Opports for continued learning  6  +5 ( 30)  +4 ( 24)  +4 ( 24)
Physical work environment  2  +5 ( 10)  +3 ( 6)  +2 ( 4)
Psychological environ & stress  3  +5 ( 15)  0 ( 0)  -1 ( -3)
Variety of work  5  +5 ( 25)  +2 ( 10)  +3 ( 15)
Opportunities for creativity  7 +5 ( 35)  +3 ( 21)  +4 ( 28)

      ( 347)   
   TOTAL POINTS (add "happiness points" in  570=possibl
BOUNDED RATIONALITY MODEL
SET GOAL APPRAISE
OR ALTERNATIVE
DEFINE EMPLOY
FEASIBLE
PROBLEM HEURISTIC ALTERNATIVE
PROGRAMMES IDENTIFIED ACCEPTABLE
TO IDENTIFY
FEASIBLE
ALTERNATIVES
ESTABLISH LEVEL ACT
OF
ASPIRATION

NO FEASIBLE
ADJUST ALTERNATIVE IDENTIFIED
ASPIRATION
LEVEL APPRAISE EASE
FOR
ASPIRATION
LEVEL
ATTAINMENT
 ANOTHER FORM

Problem Problem Satisficing Identify

identified simplified criteria set alternatives

Select first Compare

Does alternative alternatives
alternative
YES meet satisficing one at a time
that meets
criteria and Criteria? against criteria
is considered
“good enough”
NO
Expand on
alternatives
 DEFFERENCE BETWEEN THE TWO
ECONOLOGIC MAN
SEARCH ALTERNATIVE AND
MAXIMIZE OUT OF HIS DECISION
CRITERIA IS OPTIMALITY
WHAT MANAGERS SHOULD DO
BOUNDED
RATIONALITY
CONTINUES TO SEARCH
ALTERNATIVES UNTIL HE
FINDS THE ONE THAT MEETS
SOME PERSONALLY
DETERMINED MINIMUM
ACCEPTABLE LEVEL
SATISFICING
WHAT MANAGERS ACTUALLY DO
IMPLICIT FAVOURITE DECISION RULE DOES
NOT JUSTIFIES IMPLICIT
MODEL FAVOURITE

ESTABLISH
SET CAMPARE & IDENTIFY DECISION
GOAL RANK CONFIRMATION RULE OR
CRITERIA
IMPLICITLY CANDIDATE
REJECTED
ALTERNATIVE
DECISION RULE
IDENTIFY JUSTIFIES IMPLICIT
IMPLICIT FAVOURITE
FAOURITE
ANNOUNCE
ACT
DECISIONS
 ANOTHER FORM

Select an Establish
implicit criteria to
favorite match implicit
alternative
4
favorite
Confirm Select
Need for a implicit
5
1 decision is 2 3 implicit
favorite favorite
determined
Compare
Identify alternatives with
other implicit favorite
alternatives criteria
 CORPORATE EXAMPLE

BOEINGS DECISION TO GO DIGITAL FOR DEVELOPING

THE 777

GRANITE ROCK CORPORATION