Principles of
Management
MANAGERS AS DECISION MAKERS
The Decision Making Process
Identify a problem
Identify decision criteria
Allocate weights to the criteria
Develop alternatives
Analyze alternatives
Select an alternative
Implement the alternative
Evaluate decision effectiveness
The Manager as Decision Maker
Rationality
Bounded rationality: “good enough”
The role of intuition
Evidence-based management
Types of Decisions
Structured problems/programmed decisions
Procedures
Rules
Policy
Unstructured problems/nonprogrammed decisions
Decision making conditions
Certainty
Risk
Uncertainty
Decision Making Styles
Linear thinking style
External information
Logical thinking
Nonlinear thinking style
Feelings and intuition
Creative thinking
Biases and errors
Overconfidence
Selective perception
Hindsight
Effective Decision Making in Today’s
World
Understand cultural differences
Know when it’s time to quit
Use an effective decision making process
Learn to spot the unexpected and quickly adapt