Management Decision Making

Ch 7: Decision Making Process

Concepts:
If issue has been made in past, use programmed decisions;
If not, use 7-step decision making process (non programmed decision):

Decision making process:
1 - define problem / opportunity
2 - identify limiting factors (ex. resources)
3 - develop potential alternatives
4 - analysing the alternatives
5 - selecting the best of the alternatives
6 - implementing the decision (apply visual thinking; know exactly what to do, how to do it, why, when)
7 - establishing a control & evaluation system

In step 2, we deal with environmental factors and limiting factors. We can use the Vroom-Yetton-Jago Decision Tree to extract and model knowledge to effectively make decisions. In that model, we identify and use internal and external env factors to help make decisions.

Group Decision making:
brainstorming
- nominal group technique - (ideas round-robin, voting, evaluate list, final voting)
- Delphi technique - two rounds of questionnaires and summaries, (one w/o interaction and one w/ interaction with experts)
The disadvantages to the above include group-think, accountability, and they're good for editing docs but bad for making procedures.