decision making, learning, creativity, and entrepreneurship chapter seven copyright © 2014 by the...
TRANSCRIPT
Decision Making, Learning,
Creativity, and Entrepreneurship
chapter seven
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
Learning Objectives
1. Understand the nature of managerial decision making, differentiate between programmed and non-programmed decisions, and explain why non-programmed decision making is a complex, uncertain process.
2. Describe the six steps that managers should take to make the best decisions and explain how cognitive biases can lead managers to make poor decisions.
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Learning Objectives
3. Identify the advantages and disadvantages of group decision making, and describe techniques that can improve it.
4. Explain the role that organizational learning and creativity play in helping managers to improve their decisions.
5. Describe how managers can encourage and promote entrepreneurship to create a learning organization and differentiate between entrepreneurs and intrapreneurs
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The Nature of Managerial Decision Making
Decision Making The process by which managers respond to
opportunities and threats that confront them by analyzing options and making determinations about specific organizational goals and courses of action.
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Decision Making
Programmed Decision Routine, virtually automatic process
Decisions have been made so many times in the past that managers have developed rules or guidelines to be applied when certain situations inevitably occur
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The Classical Model
Optimum decision The most appropriate decision in light of what
managers believe to be the most desirable future consequences for their organization.
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The Classical Model of Decision Making
Figure 7.1
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Why Information Is Incomplete
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Figure 7.2
Causes of Incomplete Information
Ambiguous Information Information that can
be interpreted in multiple and often conflicting ways.
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Figure 7.3
Young Woman or Old Woman
Six Steps in Decision MakingFigure 7.4
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Group Decision Making
Superior to individual makingChoices less likely to fall victim to biasAble to draw on combined skills of group
membersImprove ability to generate feasible
alternatives
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Devil’s Advocacy and Dialectical Inquiry
Figure 7.7
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Organizational Learning and Creativity
Creativity A decision maker’s
ability to discover original and novel ideas that lead to feasible alternative courses of action.
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Senge’s Principles for Creating a Learning Organization
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Figure 7.8
Entrepreneurship and Management
Frequently, founding entrepreneur lacks the skills, patience, and experience to engage in the difficult and challenging work of management
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