Question: Explain the six (6) steps in the decision-making process in a 2-3 sentence paragraph. 1. The programmed decision is made in response to a situation
Explain the six (6) steps in the decision-making process in a 2-3 sentence paragraph.
1. The programmed decision is made in response to a situation that has occurred frequently enough to result in the development of decision rules and their future application. (pp. 185) The programmed decision is a decision that applies a solution from past experiences to a routine or recurring problem in the organization. 2. There are also unscheduled decisions, these according to Daft are made in response to a situation that is unique, is poorly defined and shows a notorious lack of structure, which has important consequences for the organization. (pp. 185) These apply to a specific or unique solution designed for a particular problem, they are not very structured. We have the crisis is an unexpected problem that can result in a disaster if it is not resolved quickly and properly. Conditions that affect the possibility of a decision failure according to Daft (2011) 1. The certainty or certainty - it is all the information that the decision maker needs, it is fully available. Whoever makes the decision is sure of what will happen, knows the effect of making the decision. (Pp. 186) 2. Risk- situation that occurs when a decision has very precise goals and good information is available, but the future results associated with each alternative are subject to uncertainty. (pp. 186) Eg interest rate. 3. Uncertainty- Managers know what goal they want to achieve, but information about alternatives and future events is incomplete. They have little data and the information is not reliable, they cannot estimate the risk. (pp.187) For example, we see this when a company wants to internationalize, the political situation of the country where it wants to establish itself is an unpredictable factor. 4. Ambiguity- Goals and problems to be solved are unclear, alternatives are difficult to define, and information about results is not available. This is considered the most difficult decision. Daft (2011) gives us the example of Ford Motor Co. and Firestone managers where they encountered problems with Ford Explorer tires opening on the road, causing the tires to blow out and cause fatal rollovers. . " (pp.187)
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