9/6/17

Managers as Decision
Makers and Planners
BA 101 – Introduction to Management
Louie Lee

The Managerial Decision Making Process

Errors /
Approaches Biases
Styles

MANAGER DESCRIPTORS

Types
DECISION MAKING
DECISION
PROCESS
Conditions

DECISION
FACTORS

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Decisions Factors

CERTAINTY RISK UNCERTAINTY AMBIGUITY

State of Outcomes are Incomplete Incomplete

perfect subject to information on information on
information chance alternatives problem

Structured Problem Non-Structured Problem

Programmed Decision Non-Programmed Decision

PROCEDURE

RULE

POLICY

Approaches and Styles to Decision-Making

RATIONALITY BOUNDED INTUITION

RATIONALITY
Choices are purely Choices are limited Choices are based
logical and by access or ability on experience,
consistent to process feelings & judgment
information

Linear Thinking Non-Linear Thinking

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The Decision Making Process

1 2 3 4

Identification Allocation of
Identification Development
of Decision Weights to
of a Problem of Alternatives
Criteria Criteria

5 6 7 8

Implementation Evaluation of
Analysis of Selection of an
of the Decision
Alternatives Alternative
Alternative Effectiveness