Managers confront decision requirements in the form of either a problem or an
opportunity. A problem occurs when organizational accomplishment is less than the
established goal or some aspect of performance is unsatisfactory. An opportunity exists
when managers see potential accomplishment that exceeds specified current goals.
Managers see the possibility of enhancing performance beyond current levels.
Managerial decision making is assumed to be rational in that managers make consistent, value
maximizing choices within specified constraints.
Decision-making is the process through which managers identify organizational
problems an attempt to resolve them. Managers may not always make the right
decisions, but they use their knowledge of appropriate decision making
processes to increase the odds. Managers make many different decisions in the
course of their work and it becomes necessary that the decision-making process
is effective. An effective decision-making process generally includes four steps:
1. Identify the problem.
2. Generate alternative solutions.
3. Evaluate and choose among alternative solutions.
