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A range of creative policy or management alternatives designed to address the objectives is developed. Alternatives should reflect substantially different approaches to the problem or different priorities across objectives, and should present decision makers with real options and choices. Good solutions are not possible without good alternatives. Yet we often move to a single solution, without truly exploring distinct and creative alternatives. Technical teams take on the task of delivering “recommendations” to decision makers. But often these recommendations encompass value judgments that are better made by decision makers. Usually, what decision makers need is good information about a small, carefully thought out set of alternatives – their consequences, key differences (trade-offs) in their consequences, and the response of key stakeholders with respect to these trade-offs. Generating good alternatives is a source of important insights both from a technical perspective and a values perspective. Most often, an alternative is not a single action, but a set of actions – a ‘portfolio’ , “strategy”, or ‘package’ of individual elements that together provide a comprehensive approach to the decision situation. In this section we explore:
Characteristics of good alternativesDeveloping good alternatives is an iterative task. Initially, the task is to generate a range of creative alternatives. These alternatives are carefully evaluated technically, in terms of their estimated consequences. They are also evaluated deliberatively, in terms of their relative desirability. New alternatives are generated, joint gains are found and the key trade-offs and uncertainties are highlighted. By the time alternatives are presented to decision makers, they should be:
Key Ideas
Presentation on theme: "Managers as Decision Makers"— Presentation transcript: 1 Managers as Decision Makers
2 Chapter 4 How do managers use information to solve problems? 3 4.1 Using Information to Solve Problems 4 4.1 Continued Using Information To Solve
Problems 5 Performance Opportunity 6 USING INFORMATION TO Solve Problems Problems Pose Threats And Opportunities
7 USING INFORMATION TO Solve Problems Problem Solving Approaches
8 USING INFORMATION TO SOLVE PROBLEMS Types of Decisions 9
USING INFORMATION TO SOLVE PROBLEMS Problem Solving Approaches 10 USING INFORMATION TO SOLVE PROBLEMS Problem Solving Approaches 11 USING INFORMATION TO SOLVE PROBLEMS Problem Solving Environments 12 USING INFORMATION TO SOLVE PROBLEMS Problem Solving Environments 13 4.2 Steps In The Decision Making Process 14 4.2 Steps In The Decision Making Process
15 THE DECISION MAKING PROCESS Step 1 – Identify And Define The Problem
16 Who are the stakeholders and how will the alternatives affect them?
17 Two different outcomes 18 THE DECISION MAKING PROCESS Step 4 – Implement The Decision
19 THE DECISION MAKING PROCESS Step 5 – Evaluate Results 20 THE DECISION MAKING PROCESS Ethical Reasoning Is Important
21 THE DECISION MAKING PROCESS Ethical Reasoning Is Important
22 4.3 Current Issues In Decision Making 23 ISSUES IN DECISION MAKING Personal Factors Drive
Creativity
24 ISSUES IN DECISION MAKING Personal Factors Help Drive Creativity 25 ISSUES IN DECISION MAKING Group
Decision Making 26 ISSUES IN DECISION MAKING Decision Making Errors 27 ISSUES IN DECISION MAKING Decision Making
Errors 28 ISSUES IN DECISION MAKING Decision Making Errors
29 ISSUES IN DECISION MAKING Decision Making Errors
30 ISSUES IN DECISION MAKING Decision Making In A Crisis
31 ISSUES IN DECISION MAKING Decision Making In A Crisis 32 Decision making steps Describe how you
would follow the five step decision-making process in buying a used car. You have $7,000 to spend. Create a group consensus ranking of the top 5 criteria you would use to evaluate your selection. Where would you look for the cars? How many cars or models would you examine before you would feel comfortable making the decision? What are the benefits of looking at more cars? What are the disadvantages, if any? Were you able to optimize or satisfice? Is the decision environment in which complete information is available about possible alternative courses of action and their outcomes?A risk environment is a decision situation in which factual information is available about the possible alternative courses of action and their outcomes.
What is the process of selecting an alternative course of action that will solve a problem?Decision making is the process of selecting an alternative course of action that will solve a problem.
What is the process of defining the problem and identifying and choosing alternative courses of action in manner appropriate to the demands of the situation?According to Kreitner (1966) decision making is a process of identifying and choosing an alternative course of action in a manner appropriate to the demand of the situation.
What is called when comparing the costs of implementing an alternative with its expected benefits?Cost–benefit analysis (CBA), sometimes also called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives.
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