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1、1,Decision-Making,The Essence of the Managers Job,2,I The Decision-Making Process Decision Making a choice from two or more alternatives.The Decision-Making Process Identifying a problem and decision criteria and allocating weights to the criteria. Developing, analyzing, and selecting an alternative
2、 that can resolve the problem. Implementing the selected alternative. Evaluating the decisions effectiveness.,3,4,5,Step 1: Identifying the Problem,Problem A discrepancy between an existing and desired state of affairs. Characteristics of Problems A problem becomes a problem when a manager becomes a
3、ware of it. There is pressure to solve the problem. The manager must have the authority, information, or resources needed to solve the problem.,6,Step 2: Identifying Decision Criteria,Decision criteria are factors that are important (relevant) to resolving the problem.Costs that will be incurred (in
4、vestments required) Risks likely to be encountered (chance of failure) Outcomes that are desired (growth of the firm),7,Step 3: Allocating Weights to the Criteria,Decision criteria are not of equal importance:Assigning a weight to each item places the items in the correct priority order of their imp
5、ortance in the decision making process.,8,Criteria and Weights for Computer Replacement Decision,Criterion Weight Memory and Storage 10 Battery life 8 Carrying Weight 6 Warranty 4 Display Quality 3,9,Criteria and Weights for Franchise Decision,Criterion Weight Start-up costs 10 Franchisor support 8
6、Financial qualification 6 Open geographical locations 4 Franchisor history 3,10,Step 4: Developing Alternatives,Identifying viable alternativesAlternatives are listed (without evaluation) that can resolve the problem.,11,Step 5: Analyzing Alternatives,Appraising each alternatives strengths and weakn
7、essesAn alternatives appraisal is based on its ability to resolve the issues identified in steps 2 and 3.,12,Assessed Values of Laptop Computers Using Decision Criteria,13,Evaluation of Laptop Alternatives Against Weighted Criteria,14,Assessed Values of Franchise Opportunities Using Decision Criteri
8、a,Start-up Franchisor Financial Open Franchisor Franchise cost support qualification locations history Curves 10 3 10 8 5Sandwiches 8 7 7 8 7Jani-king 8 5 7 10 10Tax Service 8 7 7 8 7GNC 7 8 7 8 7 Radio Shack 8 3 6 10 8 Chem-Dry 10 7 8 6 7 McDonalds 4 10 4 8 10,15,Evaluation of Franchise Alternative
9、s against Weighted Criteria,Start-up Franchisor Financial Open Franchisor Total Franchise cost support qualification locations history Curves 100 24 60 32 15 231 Sandwiches 80 56 42 32 21 231 Jani-king 80 40 42 40 30 232 Tax Service 80 56 42 32 21 231 GNC 70 64 42 32 21 229 Radio Shack 80 24 36 40 24 204 Chem-Dry 100 56 48 24 21 249 McDonalds 40 80 24 32 30 206,16,Step 6: Selecting an Alternative,Choosing the best alternativeThe alternative with the highest total weight is chosen.,
