MGT162 : Chapter 3
CHAPTER 3 : THE NATURE OF DECISION MAKING Definition Decision making is the process through which managers and leaders identify and resolve problems and capitalized on opportunities. Types of Decision Making 1. Programmed decision Decision that have occurred in the past and the response is routine. For example, student registration. 2. Non-programmed decision Decision made in response to situations that are unique, unstructured and poorly defined. For example, handling disasters. Types of condition under decision making 1. Certainty 2. Risk 3. Uncertainty Rationale of decision making 1. Gained all information needed 2. Objectives are known and list all of alternatives to choose 3. Need to be rational and logical 4. Act in the best interests 5. Overcome ethical dilemmas 7 Step in Decision Making Process 1. Identify opportunities and diagnose problems 2. Identify objectives 3. Generate alternatives 4. Evaluate ...