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Slide 1: Slide 2:: Nonroutine High-Involvement

This document discusses various aspects of decision making for managers. It begins by defining decision as a conclusion reached after consideration. Managers make decisions to solve problems or increase opportunities. Programmed decisions are based on standard operating procedures, while nonprogrammed decisions require more thought due to unfamiliar situations. Decisions can be made under conditions of certainty, risk, or uncertainty depending on what is known about alternatives and outcomes. The document then discusses rational decision making models and notes that real decisions often involve bounded rationality due to limited information. Group decision making techniques like the Delphi method and nominal group technique are presented along with potential issues like groupthink. In conclusion, good decisions accomplish goals within budget and consider morality, and managers can improve decisions through

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Queenie Marie Castillo
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
42 views

Slide 1: Slide 2:: Nonroutine High-Involvement

This document discusses various aspects of decision making for managers. It begins by defining decision as a conclusion reached after consideration. Managers make decisions to solve problems or increase opportunities. Programmed decisions are based on standard operating procedures, while nonprogrammed decisions require more thought due to unfamiliar situations. Decisions can be made under conditions of certainty, risk, or uncertainty depending on what is known about alternatives and outcomes. The document then discusses rational decision making models and notes that real decisions often involve bounded rationality due to limited information. Group decision making techniques like the Delphi method and nominal group technique are presented along with potential issues like groupthink. In conclusion, good decisions accomplish goals within budget and consider morality, and managers can improve decisions through

Uploaded by

Queenie Marie Castillo
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SLIDE 1: First: Meaning of Decision- a conclusion or resolution reached after

consideration/a formal judgment.

SLIDE 2: Managers make decisions in order to solve problems or in order to increase


opportunities. The Decision Maker must understand the situation driving the decision. For
example, sa isang company, ang best decision is the one who optimizes some set
factors such as profit, sales, employee welfare and market share. Or in other
company, ang best resort nila in order to minimize loss, expense and employee
turnover ay ang mag quit na sa business, lay off and quitting strategic alliance.

SLIDE 3: PROGRAMMED DECISION EXAMPLES: Yung decisions regarding sa basic


operating systems and procedures and standard transactions ng company like ilan
ang bibilhing materials every month. For example, the retail store manager may not
know how busy the store will be the week of a big sale, but might routinely increase
staff by 30% every time there is a big sale (because this has been fairly effective in
the past). NAGAWA ang decision based on Heuristics ( mental shortcuts) are efficient—
they save time for the decision maker by generating an adequate solution quickly.

NONPROGRAMMED- Intuition and experience are major factors. This are also called
nonroutine decisions or as high-involvement decisions because they require greater
involvement and thought on the part of the decision maker. For example, consider a
manager trying to decide whether or not to adopt a new technology. There
(mergers, acquisitions, take overs are example), new facilities, product, labor
contracts are another example.

SLIDE 4: State of certainty: A condition in which the decision maker knows with
reasonable certainty what the alternatives are and what conditions are associated with each
alternative. When the outcomes are known and their consequences are certain, the
problem of decision is to compute the optimum outcome. Example of decisions
under state of certainty are allocation of resources, reordering of inventory once
stock falls below the determined level and payment of wages or salaries.

State of risk: A condition in which the availability of each alternative and its potential payoffs
and costs are all associated with probability estimates. This is the state where a manager lacks
complete information. A manager may understand the problem and the alternatives,
but has no guarantee how each solution will work. Risk is a fairly common decision
condition for managers. An example is the decision a manager made when there are
unforeseen circumstances or unexpected problems in the workplace. RISK= If
nagbanta ang members na mag sstrike pag di nasunod ang gusto nilang terms and
conditions. RISK kasi the management must decide if susundin ba nila yung gusto
ng union considering na lalaki yung costs of labor nila or isasantabi lang nila ang
union pero problema din kasi magsstrike mga ito, lalong makakagulo and maaring
mataas naman ang cost if ever may di magandang mangyari.

State of Uncertainty: A condition in which the decision maker does not know all the
alternatives, the risks associated with each, or the likely consequences of each alternative.
INTUITION, JUDGEMENT, AND EXPERIENCE ANG NAGPEPLAY NG ROLE DITO SA
STATE NA TO. MOST PRONE TO ERROR ITO. EXAMPLE: For example, a manager who is
trying to decide between one of two possible marketing campaigns. The decision to be made is
under uncertainty since the manager wasn’t sure about the outcome of the choice he made.
Option 1 might be better than option 2 or vice versa. When the economy is going bad
because of this pandemic and causing everyone to worry about what will happen
next, this is an example of an uncertainty.

CONCLUSION: MOST OF THE DECISIONS MADE BY MANAGERS TODAY ARE UNDER STATE OF
UNCERTAINTY. In decision making under uncertainty, decision makers have no
information at all about the various outcomes. ... In decision making under risk,
decision makers have some knowledge regarding the probability of occurrence of
each outcome. The probability could be a precise measure or an estimate.

SLIDE 7: RATIONAL DECISION MAKING= based on or in accordance with


reason or logic. Ang model under this perspective ay ang classical model

SLIDE 9: rational steps. Example sa step 1 ay nagmalfunction ang


machine. Step 2: REPAIR OR BUY NEW ONE. STEP 3= DIAGRAM
STEP 4-6. LUGE KA PAG YUNG REPAIR PINILI MO TAPOS NAG
MALFUNCTION ULIT YUNG MACHINE , SIGURO NEXT TIME DAPAT
BUMILI KA NG BAGO.
SLIDE 11: Is it better if decisions are always made rationally, but studies show that
most of the decisions made by managers are based on their behavior or the Behavioral
aspect of decision making. Administrative model is authored by Herbert A. Simon and
he is one among those that recognize that decisions are not always rational and logical.

SLIDE 13: BOUNDED RATIONALITY happens because we're incapable of


getting all the information out there and couldn't even digest the information if we were able to get it
in the first place. Therefore, you're more likely to pick something that meets maybe one or two
 Supply chain management- According to a model
criteria. Example:

based on perfect economic rationality, company decision-makers


would make decisions for their supply-chain that would yield the
greatest profit. However, such a model would not take into account
other factors like reputation or sustainability. Short-term
temptations- such as buying appliances that have a lower initial price
but costs us more over time because of energy costs, or to put our
preferences to the side to receive a reward sooner.
SLIDE 14: Satisficing naman example eh halimabaw, naghahanap kayo ng
bagong location ng site, pinili mon a lang yung un among nakita without
looking for other considerations , di mon a nalaman if yan ba yung best
location na makakatipid ka sa lahat ng cost, gusto mo lang malipat agad
yung site para makapagfunction na kayo.
In summary, then, the classical and administrative models paint quite different
pictures of decision making. Which is more correct? Actually, each can be used
to better understand how managers make decisions. The classical model is
prescriptive: It explains how managers can at least attempt to be more rational
and logical in their approaches to decisions. The administrative model can be
used by managers to develop a better understanding of their inherent biases and
limitations.

SLIDE 15: example ng coalition is when nagsanib pwersa yung mga


stockholders to force what they want dun sa decision ng board of
directors.

SLIDE 16: kung ano sa tingin mong tama eh dun ka, intuition
Escalation of commitment naman example sticking with unsound
business strategies.

SLIDE 17: OTHER MANAGERS ARE AGGRESSIVE IN MAKING


DECISIONS AND WILLING TO TAKE RISK. IT’S EITHER MORE
PROFIT OR BIG LOSS AND OUTCOME DITO.

SLIDE 18: DELPHI TECHNIQUE: DO NOT MEET FACE-TO FACE ANG


MEMBERS, SASAGOT NG QUESTIONNAIRES TAPOS I AAVERAGE
OR CONSOLIDATE ANG ANSWERS. This technique is mostly used for
the decisions relating to demand forecast, project market trends, identify
future problems, predict the future state of finance, production etc.
Advantages are -Ego problems and related issues of face-to-face
interaction can be avoided
-Efficient use of expert time
-Avoidance of interpersonal problems
-Enough time is given for reflection and analysis by respondent

SLIDE 19: Members develop the solutions independently and write them
on cards. (iii) They share their ideas with each other in a structured format
(all members get an opportunity in a round table format). Highest
ranking alternative represents the decision of the group. But is it
up to the manager if accept or reject yung decision.

SLIDE 21: groupthink is kung ano na lang napagkasunduan to


avoid conflict among members without considering if it have the
best outcome or not. Example groupthink na magstick kayo sa
product niyo kasi yan ang patok or original pero di niyo
napapansin na madami na competitior na nagdevelop ng product
tapos napag iwanan na product niyo.

CLOSING REMARKS: Decision making is important to achieve


organizational objectives. A good decision is done when a firm accomplish
its goals while properly utilizing its given budget and time. Before making a
decision, a manager must keep in mind if it is morally upright. Even if it is
the best decision he can made, if it doesn’t benefit all of his employees and
the company, then that decision is a failure. Deciding is part of our
everyday life and your choices will affect you even in a small way. It would
be good if we start practicing the steps in rational decision making in order
to come up with the best alternative Managers can take on different
strategies to effectively handle groups when making decision. Of course,
conflict cannot be avoided when a decision will come from a group. So the
members should be open-minded to the ideas of the all the other person in
the group.

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