1. Principles of Management Managing Decision Making Lecture 6

4. The Classical Model List alternatives & consequences Rank each alternative from low to high Select best alternative Assumes all information is available to manager Assumes manager can process information Assumes manager knows the best future course of the organization 5–

6. Why Information is Incomplete Uncertainty & risk Ambiguous Information Time constraints & information costs Incomplete Information 5–

8. Figure : Seven Steps in the Decision-Making Process Identifying opportunities and diagnosing problems Identifying objectives Generating alternatives Evaluating alternatives Choosing implementation strategies Monitoring and evaluating Reaching decisions 5–

13. Figure: Keys to Effective Implementation of Decisions 5–

14. Steps In The Implementation Plan Implementation Plan 5– List the resources and activities required to implement each step Estimate the time needed for each step Determine how things will look when the decision is fully operational Order the steps necessary to achieve a fully operational decision Assign responsibility for each step to specific individuals