Chapter 4

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The act of choosing one alternative from

Decision making
among a set of alternatives

Recognizing and defining the nature of a


decision situation

Identifying alternatives
Decision-making process
Choosing the best alternative
The nature of decision making
Putting it into practice

Programmed decisions
Types of Decisions
Nonprogrammed decisions

Certainty

Decision-Making Conditions Risk

Uncertainty

Classical decision model

Recognizing and defining the decision


situation

Identifying alternatives

feasibility

Rational perspectives on Evaluating alternatives satisfactoriness


Steps in rational decision making
decision making
consequences

Managing Decision Selecting the best alternative

Making Implementing the chosen alternative

Following up and evaluating the results

Evidence-based management (EBM)

use incomplete information + do not always


behave rationally
Administrative model
reconizes the concepts of bounded
rationality and satisficing
Behavioral aspects of decision Political Forces in Decision Making Coalition
making
Intuition
Intuition and Escalation of Commitment
behavioral forces can influence decisions Escalation of commitment

Risk Propensity

Ethics

Interacting group or team


Group and Team Decision
Delphi group
Making in Organizations
Nominal group

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