CH2: Making Decisions
Contemporary Management
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Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2021
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Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020
ACTIVITY
❤
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Write down all possible decisions that managers
are likely to make across the four common
management process stages
Organizing Directing
(Leading)
Evaluation
and Control
Planning
Continuous
Improvement
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020
ACTIVITY
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Planning Organizing Leading Control Improvement
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020
Decisions Managers May Make
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020 5
Decisions Managers May Make
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020 6
Decision: A process Of Making a choice
from two or more alternatives.
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Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020 8
Identifying
the Problem
1Identifying
Decision
Criteria
2Allocating
Weights to
Criteria
3Developing
Alternatives
4Analyzing &
Selecting
Alternatives
5Execution
6Evaluating
Decisions
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7Steps to Effective
Decision Making
Decision Criteria are factors that are important (relevant) to
resolving the problem
the decision maker must weight the items in order to give
them the correct priority in the decision.
viable alternatives that could resolve the problem
Appraising each alternative’s
strengths/weaknesses or Pros/Cons
Putting the chosen
alternative into action
The soundness of the
decision is judged by
its outcomes
Problem –an obstacle that makes it difficult to achieve a desired goal or purpose.
The Decision-Making Process
Step 1: Identify a Problem
–Problem –an obstacle that makes it difficult to achieve a desired goal
or purpose.
–Every decision starts with a problem, a discrepancy between an
existing and a desired condition.
–Example –Amanda is a sales manager whose reps need new laptops.
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Existing
Condition
Desired
Condition
Problem
Discrepancy
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020
The Decision-Making Process
Step 2: Identify Decision Criteria
–Decision Criteria are factors that are important (relevant) to
resolving the problem.
–Example –Tarek decides that memory and storage
capabilities, display quality, battery life, warranty, and carrying
weight are the relevant criteria in her decision.
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Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020
The Decision-Making Process
Step 3: Allocate Weights to the Criteria
–If the relevant criteria aren’t equally important, the decision
maker must weight the items in order to give them the
correct priority in the decision.
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Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020
General Criteria
for Evaluating
