1. Managerial Decision Making Chapter 6 Part 2 Planning Challenges in the 21st Century

5. Figure 6.1 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

12. Figure 6. 2 Keys to Effective Implementation of Decisions

14. Figure 6. 3 Two Contrasting Decision Models

27. Vroom and Yetton Decision Styles AII CI AI CII GII Lightly autocratic Highly democratic A = Autocratic C = Consultative G = Group The manager solves the decision problem alone using information available at the time. The manager solves the decision problem alone after obtaining necessary information from subordinates. The manager solves the decision problem after obtaining ideas and suggestions from subordinates individually. The decision may or may not reflect their council. The manager solves the decision problem after obtaining ideas and suggestions from subordinates as a group. The decision may or may not reflect their council. The group analyzes the problem, identifies and evaluates alternatives, and makes a decision. The manager acts as a coordinator of the group of subordinates and accepts and implements any solution that has the support of the group

28. Table 6. 1 Vroom–Yago Decision-Making Styles Source: Adapted from V. H. Vroom, “Leadership and the Decision-Making Process,” Organizational Dynamics (Spring 2000): 82–94. Decide style Leader makes the decision alone and announces or sells it to the group. Leader uses his/her own expertise and may collect information from the group to help solve the problem. Consult individually style Leader presents the problem to group members individually, gets their ideas and suggestions individually, and then makes the decision. Consult group style Leader presents the problem to group members in a meeting, gets their suggestions, and then makes the decision. Facilitate style Leader presents the problem to the group in a meeting and acts as a facilitator by defining the problem to be solved and the constraints within which the decision must be made. Leader seeks concurrence from group members on a decision. Delegate Style Leader permits the group to make the decision within prescribed limits. Group undertakes the identification and diagnosis of the problem and the development of alternative solutions and makes the decision on the selection of alternative(s).

30. Figure 6. 4 Vroom and Jago Decision Model Instructions: The matrix operates like a funnel. You start at the left with a specific decision problem in mind. The column headings denote situational factors which may or may not be present in that problem. You progress by selecting High and Low (H or L) for each relevant situational factor. Proceed down from the funnel, judging only those situational factors for which a judgment is called for, until you reach the recommended process.

42. Responses to Decision Situations Responses require creativity. Responses are routine. Alternatives are not familiar to decision makers. Alternatives are familiar to decision makers. Nonprogrammed Decisions Programmed Decisions

45. Table 6. 4 Strategic Decision-Making Matrix Objectives Increased Increased Total Increased Share Output Weighted Profit Market Production Score Alternative 0.5 0.3 0.2 Strategies/ Weight Product 2 2 3 0.5(2) 1 0.3(2) 1 0.2(3) 5 2.2 development Horizontal 4 2 2 0.5(4) 1 0.3(2) 1 0.2(2) 5 3.0 integration Joint venture 5 3 3 0.5(5) 1 0.3(3) 1 0.2(3) 5 4.0

48. Figure 6. 5 The BCG Growth-Share Matrix

51. Table 6. 6 Illustration of Industry Attractiveness and Business Strength Computations Source: Adapted from Strategic Management: Text and Cases on Business Policy by Hesmer, © 1984. Reprinted by permission of Prentice Hall, Upper Saddle River NJ.

53. Figure 6. 6 The GE Industry Attractiveness/Business Strength Matrix