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Chapter: Principles of Management : Planning

Decision making process: Problem Analysis vs Decision Making

Problem Analysis vs. Decision Making: It's important to differentiate between problem analysis and decision making. The concepts are completely separate of one another. Problem analysis must be done first, then the information gathered in that process may be used towards decision making.

Decision making process

 

Problem Analysis vs. Decision Making

 

It's important to differentiate between problem analysis and decision making. The concepts are completely separate of one another. Problem analysis must be done first, then the information gathered in that process may be used towards decision making.

 

Problem Analysis

 

Analyze performance, what should the results be against what they actually are

 

     Problems are merely deviations from performance standards

 

     Problem must be precisely identified and described

 

     Problems are caused by some change from a distinctive feature

 

Something can always be used to distinguish between what has and hasn't been effected by a cause

 

Causes to problems can be deducted from relevant changes found in analyzing the problem

 

     Most likely cause to a problem is the one that exactly explains all the facts

 

Decision Making

 

     Objectives must first be established

 

     Objectives must be classified and placed in order of importance

 

     Alternative actions must be developed

 

     The alternative must be evaluated against all the objectives

 

The alternative that is able to achieve all the objectives is the tentative decision

     The tentative decision is evaluated for more possible consequences

 

The decisive actions are taken, and additional actions are taken to prevent any adverse consequences from becoming problems and starting both systems (problem analysis and decision making) all over again

 

Everyday techniques

 

Some of the decision making techniques people use in everyday life include:

 

                        Listing the advantages and disadvantages of each option, popularized by Plato and Benjamin Franklin

 

                        Choosing the alternative with the highest probability-weighted utility for each alternative (see Decision Analysis)

 

                        satisficing: Accepting the first option that seems like it might achieve the desired result

 

                        Acquiesce to a person in authority or an "expert", just following orders

 

                        flipism: Flipping a coin, cutting a deck of playing cards, and other random or coincidence methods

 

                        Prayer, tarot cards, astrology, augurs, revelation, or other forms of divination




 

 

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