Fundamentals of

MANAGEMENT
Core Concepts & Applications
Griffin

Chapter 9
Managing Decision Making and Problem Solving
Part 1 of 3
Copyright © 2003 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook
 Chapter Outline
• The Nature of Decision Making
– Decision Making Defined
– Types of Decisions
– Decision-Making Conditions
• Rational Perspectives on Decision Making
– The Classical Model of Decision Making
– Steps in Rational Decision Making

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 Learning Objectives
• After studying this chapter, you should be able
to:
– Define decision making

– Discuss types of decisions and decision-making

conditions.

– Discuss rational perspectives on decision making,

including the steps in decision making.

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 The Nature of Decision Making
• Decision Making
– The act of choosing one alternative from among a set of
alternatives.
• Decision-Making Process
• Recognizing and defining the nature of a decision situation,
situation
• identifying alternatives,
alternatives
• choosing the “best”
best alternative, and
• putting it into practice.
practice

– An effective decision is one that optimizes some set of factors such as

profits, sales, employee welfare, and market share.
– Managers make decisions about both problems and opportunities.
opportunities

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 Types of Decisions

Programmed Decisions
A decision that is a fairly structured decision or recurs
with some frequency or both.
Example: Starting your car in the morning.

Nonprogrammed decisions
A decision that is relatively unstructured
and occurs much less often than a
programmed decision.
Example: Choosing a vacation destination

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 So what topics did we just learn?

• We learned to define “Decision Making”

• We also learned that “Decision Making Process” is much

more than just “Decision Making”

• And finally, we learned that there are two types of

decisions

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