Foundations of Decision-Making

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It may be noted such effects, as a phenomenon of mutual exchange (decision due to a sense of duty), the presence of the audience, limited time, the influence of the status, the impact of advertising, dependence on decisions of others.

In a separate group should identify errors related to insufficient monitoring of implementation in the decision - it's improper exercise goal-setting, the selection criteria to achieve the objectives and deadlines.

To avoid errors in decision-making, use the following steps:

- Correct and careful definition of objectives and selection criteria for the decision.

- A thorough data collection and analysis, decision-making conditions.

- Compliance with the decision-making stage.

- Choice of ways and methods of decision-making, adequate to the terms.

- The use of special techniques and strategies for decision-making.

- Monitoring the implementation of the decision at all stages of decision-making.

- Adequate allocation of functions, duties and responsibilities, with the participation of several persons in the decision.

- Ergonomic layout of the work environment.

Conclusion.

Throughout the development of management problem management decision-making held various management schools: German, American, Japanese and Russian. Summarizing and analyzing the representation of different schools of the decision-making process, we can identify the following features:

• decision-making - a process is a sequence of interrelated stages;

• at all stages of decision-making involves the collection, processing and evaluation of information;

• at all stages of the decision making process are basic: clarification of the problem, gather information, identify alternatives, define constraints, criteria, evaluation of alternatives and decision making;

• decision-making process seems to work as a system manager, he is subject to the laws of management, organization of human activity.

Recommendations

The decision - a selection of the best options among many possible, giving all activities focus, i.e. the subordination of a certain goal or set of goals. This selection is carried out using established criteria, taking into account resource constraints. You may need to obtain additional information. When selecting final decision could also be brought experts. Selecting solutions can be carried out collectively, but the responsibility for the decision and the results of its implementation rests with the heads with the authority to direct a division of the organization in which there was a problem situation.

Reference

Fundamental of Management “Global Edition” – Stephen P. Rpbbins, David A. Decenzo, Mary Coulter

(Part 2 Chapter 3 Foundation of Decision Making)

Management Accounting for Business Decisions - Colin Drury

(Introduction to Management Accounting the Decision Making Process)

Bibliography

Fundamentals of Management

(Ricky W. Griffin Texas A & M University)

Effective Management Decision Making (Ian Pownal)

Foundations of Decision Making

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Group members:

Kamoliddin Kalandarov (B0019maemae0215)

Zhen Xiang (B0105chesyg0215)

Abror Isaev ( B0224vsavsa0215)

Xing Zhou (B0044swgswg1114)

Farrux Kholov (B0020bsabsa0215)

Topics which will be covered:

1. Introduction

2. Process of Decision Making

3. Factors

4. Intuitive decision making

5. Conclusion

Introduction

What is a solution?

What is a decision?

What is a decision making?

The solution - a requirement for action to solve the problem.

The decision - the choice of a particular action of a variety of options (alternatives). In the simplest case, it is a choice of two alternatives: to act or not to act.

What is Decision Making?

The thought process of selecting a logical choice from the available options.

When trying to make a good decision, a person must weigh the positives and negatives of each option, and consider all the alternatives. For effective decision making, a person must be able to forecast the outcome of each option as well, and based on all these items, determine which option is the best for that particular situation.

Process of Decision Making

• Defining / Identifying the managerial problem,

• Analysing the problem,

• Developing alternative solutions,

• Selecting the best solution out of the available

alternatives,

• Converting the decision into action.

• Ensuring feedback for follow-up

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Factors:

• Perception

• Priority