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Decision
Making a choice from two or more alternatives. TERM 2
Decision-Making Process
DEFINITION 2 -Identifying a problem and decision criteria and allocating weights to the criteria.-developing, analyzing, and selecting an alternative that can resolve the problem-implementing the selected alternative.-evaluating the decision's effectiveness TERM 3
Decision-Making Process Step
DEFINITION 3 IDENTIFYING THE PROBLEMproblem : A discrepancy between an existing and desired state of affairs TERM 4
characteristics of problems
DEFINITION 4 -A problem becomes a problem when a manager becomes aware of it-there is pressure to solve the problem-the manager must have the authority, information, or resources needed to solve the problem TERM 5
Decision-Making process step 2
DEFINITION 5 IDENTIFYING DECISION CRITERIA-decision criteria are factors that are important (relevant) to resolving the problemcosts that will be incurred (investments required)risks likely to be encountered (chance of failure)outcomes that are desired (growth of the firm)
Decision-Making Process Step
ALLOCATING WEIGHTS TO THE CRITERIADecision criteria are not of equal importance:-assigning a weight to each item places the items in the correct priority order of their importance in the decision making process.consider cost TERM 7
Decision-Making Process Step
DEFINITION 7 DEVELOPING ALTERNATIVESIdentifying viable alternativesAlternatives are listed (without evaluation) that can resolve the problem(only identifying a few alternatives) TERM 8
Decision-Making Process Step
DEFINITION 8 ANALYZING ALTERNATIVESAppraising each alternative's strength and weaknessesAn alternative's appraisal is based on its ability to resolve the issues identified in steps 2 and 3.ex. 1 old lady 2 friend who saved you 3 life partner TERM 9
Decision-Making Process Step
DEFINITION 9 SELECTING AN ALTERNATIVEChoosing the best alternative- the alternative with the highest total weight is chosenpoor selection TERM 10
Decision-Making Process Step
DEFINITION 10 IMPLEMENTING THE ALTERNATIVEPutting the chosen alternative into action-conveying the decision to and gaining commitment from those who will carry out the decisionNot implementing (correctly)
