"It is designated with the term of manager to that person in a given company or organization has the responsibility and the tasks of guiding others, to execute and give orders and to get things done to be able to fulfill certain and correctly with The objective and the mission promoted by the organization. "(Abc, 2007-2017) ABC http://www.definicionabc.com/general/gerente.php
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
People as the head of a company, must have the necessary tools to be able to make decisions that affect positively, a company and each of its members both internally and externally. Since all are a unit and work towards a common goal, some depend on others as a chain, and the manager is affected by each of the parties, by these all beings and everything within the company, the son of Vital importance And lead the manager to make a wise decision or not.
This chapter examines how managers make decisions and explores how individual, Group and organizational factors affect the quality of decisions and thus determine organizational performance. It discusses the nature of managerial decision-making and examines some models of the decisionmaking process. Finally, it examines how managers can promote organizational learning and creativity and improve the quality of their decision-making. Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
Learning objetives 1. Differentiate between programmed and nonprogrammer decisions. 2. Describe the six steps that managers should take to make the best decisions. 3. Explain how cognitive biases can affect decision-making and lead managers to make for decisions.
4. Identify the advantages and disadvantages of Group decision-making. 5. Explain the role that organizational learning and creativity play in helping managers to improve their decisions.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
Decision making is the process by which managers respond to the opportunities by analyzing the options and making determinations, or decisions about specific organizational goals.
Good decisions: Results in the selection of appropriate goals that increase organizational performance.
Bad decisions: Result in lower performance.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
Decision making is central to being a manager, and whenever managers engage in planning, organizing, leading and controlling, they are constantly making decisions. Managers are always searching for ways to improve their decision making in order to improve organizational performance.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
THIS DECISIONS CAN BE
Programmed decision-making, is a routine. These decisions have been made so many times in the past that managers have been able to develop rules of guidelines. This is called programmed because the manager does not need to continually make judgments about what should be done. Programmed decision-making is possible when managers have the information they need to create rules that will guide decision-making. No programmed decision-making, can be ambiguous decisions. Are decisions that are made in response to unusual or novel opportunities or threats. They must search for information about alternative courses of action and rely on intuition and judgment. Intuition is a person’s ability to make a sound decisions based on one’s past experience. Judgment is a person’s ability to develop a sound opinion because of the way she or he evaluates the importance of the information available in a particular context.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
Both intuition and judgment can be flawed and result in for decision making.
The classical and the administrative decision-making models are guides that can help managers understand the decision-making process.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
1. The classical model Is prescriptive, specifying how decisions should be made. It is bases don the assumption that the decision major can identify and evaluate all possible alternatives and their consequences and rational choose the most appropriate Couse of action also this model assumes that managers have access to all the information they need to make the optimum decision. The optimum decision is the most appropriate decision possible in light of what managers believe to be the most desirable future consequences. 2. The administrative model It propose that managers in the real world do not have accedd to all the information they need and thus must usually make what they termed to be satisfactory rather than optimal decisions. Decision making is always inherently risky and uncertain. There’s incomplete information because the full range of decision-making Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
alternatives is unknowable in most situations and consequences are uncertain. Besides, there’s ambiguous information, information that can be interpreted in multiple and often confusing ways. Also managers are vulnerable to risks and uncertainly. Risk is there when managers know the possible outcomes of a particular course of action and can assign probabilities to them and when uncertainty exists, the probabilities of alternative outcomes cannot be determined, and future outcomes are unknown. Time constraints and information costs, managers have neither the time nor the money to search for all possible alternatives and evaluate all the potential consequences. Satisficing, faced with previous limitations, managers do not attempt to discover every alternative. People use a strategy known as satisficing, exploring a limited simple of all potential alternatives. They search for and choose acceptable, or satisfactory ways to respond to problems rather than trying to make the optimum decision.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
STEPS IN THE DECISION-MAKING PROCESS
1. Recognize the need for a decision, the important issue is that they must recognize this need and respond in a timely and appropriate manner. 2. Generate alternatives, a manager must generate a set of feasible alternative courses of action to take in response to the opportunity or threat, failure to properly generate and consider different alternatives is one reason why managers make bad decisions. - Evaluate alternatives, once managers have generated a set of alternatives, they must evaluate the advantages and disadvantages of each one. Successful managers use four criteria to evaluate the pros and cons of alternative courses of action: Legality, Ethicalness, Economic, and Practicality. 3. Choose among alternatives, the next step is to Rank the various alternatives and make a decision, managers must be sure that all the information that is available is used. Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
4. Implement the chosen alternative, once a decision has been made, the alternative must be implemented. Many managers make a decision and then fail to act on it. To ensure that a decision is implemented, top managers must: - Assign to middle managers the responsibility for making the followup decisions. - Give middle managers sufficient resources to achieve the goal - Hold middle managers accountable for their performance. 5. Learning from Feedback, effective managers always conduct a retrospective analysis to see what they can learn from past successes or failures
Group decision making. Many important decisions are made by groups of administrators.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
Advantage:
- When you work as a team in decision making you suffer less from the consequences of bias. - Combine skills and accumulate knowledge. - Allows you to process more information. - There is greater diversity in decision making.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo
Disadvantages: - It takes more time in decision making and it is more complicated to agree several people. Organizational learning and creativity Organizational learning: Learn from all members of the organization. Creativity: discover original ideas to lead. Each employee must be allowed to perform a specific task; Promote creativity and team learning and individual as this strengthens the organization.
Laura Yineth Mayorga Gordillo Laura Alejandra Guevara Murillo