Decision Making
External Environment
outside the organization and not typically within the short-run control of top-management.
Internal Environment
organization activities within a firm that surrounds decision-making.
Diagnose/Identify the problem, Analyze the environment, Articulate the problem or opportunity, Develop viable alternatives, Evaluate Alternatives, Make a Choice, Implement Decision, Evaluate and adapt decision results
Decision Making Process
Implementation
carrying out the decision so that the objectives sought will be achieved.
Planning, Organizing, Leading, Controlling
Management Functions
Top, Middle, Lower
Management Levels
Prepare a list of alternative solutions, Determine the viability of each solution, Revise the list by removing those which are not viable
Procedure in developing viable alternatives
Quantitative and Qualitative
Two Approaches in Problem Solving
Quantitative Evaluation
evaluation of alternatives using any techniques in a group classified as rational and analytical
Qualitative Evaluation
evaluation of alternatives using intuition and subjective judgement.
Problem
exists when there is a difference between an actual situation and a desired situation.
Decision-Making
is the responsibility of the engineer manager. The process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation. It is the heart of all management functions.
Choice-making
process of selecting among alternatives representing potential solutions to a problem.
Control
refers to actions made to ensure that activities performed match the desired activities or goals, that have been set
Feedback
the process which requires checking at each stage of the process to assure that the alternatives generated, the criteria used in evaluation, and the solution selected for implementation are in keeping with the goals and objectives.
