1. A decision is a choice made between two or more alternatives. 2. A significant decision can have a large impact on the management system itself as well as the manager who makes them. Insignificant decisions affect only a small number of company members, costing very little to carry out and producing only a short term effect on the company. 3. Night club managers would have to make programmed and non-programmed decisions while working. Traditionally they would make decisions out of habit, clerical routine which deals with standard operating procedures.
Organizational structure decisions dealing with common expectations, a system of sub goals and well defined information channels. Modern approaches would be operations research including mathematical analysis models and computer stimulation as well as electronic data processing. Programmed decisions typically don’t require as much time or effort as non programmed do. Non programmed decisions use judgment, intuition, creativity, rules of thumb and the selection and training of executives. Modern approaches use heuristic problem solving techniques which apply to training human decision makers and constructing heuristic computer programs. . Consensus decision making uses people getting into a group to arrive at a particular decision. Typically it is used when senior level management has incomplete data and unstated biases. Using employees closest to the situation which is often in the best position to weight alternatives and contribute input that will affect the decision. 5. Consensus decision making is not used more often because it often uses too much time consuming discussions relating to the decision which can be costly to the company. 6.
Receptive orientation, exploitative, hoarding and marketing orientation decision makers are weak. Receptive orientation decision makers rely heavily on suggestions from other decision makers because they basically want other people to make their decision for them. Exploitative decision makers are willing to steal good idea and usually hog all the credit and usually extend little or none to the originators of the idea. Hoarding orientated decision makers usually accept little outside help and isolate themselves from others. They are obsessed with maintaining their present position and status.
Lastly, marketing orientated decision makers think that the decisions they make will enhance their value and are highly conscious or what others think of what they decide. 7. When a group is used to make organization decisions there are some advantages as well as some disadvantages. Advantages include: the group can draw on collective, diverse organizational experiences as the foundation for decision making, while the individual manager has only the experiences of one person to draw upon and another advantage is when the group makes a decision it’s typically one they tend to support the implantation of the decision.
The third advantage is the group usually strives to implement the decision successfully rather than giving in to failure. Disadvantages include taking longer to reach a decision because all of the members must present their ideas and discuss. Also it is possible that the quality of the group decisions can be lowered because members of the group try to maintain friendly relationships within the group. 8. “Groupthink” is a phenomenon that occurs when people within the group try to maintain friendly relationships with other members of the group.
Management can work to counter this by giving a group the authority to make a decision only when the advantages outweigh the disadvantages. 9. Strategic planning is the long range planning that focuses on the organization as a whole. Managers that strategically plan consider the company as one total unit and ask themselves what must be done in the long run to attain the company goals. 10. If someone wanted to develop a plan for a ski resort in West Virginia they would need to consider the number of people in the area along with the income of the area’s population.
In order to be able to staff the company, understanding demographics could also help to develop a strategy for recruiting potential employees. For example if the company knew that the area only had a small number of people with a certain type of educational background then that tells the organization that they should compete more intensely to attract these people. 11. Strategy is a broad and generalized plan to reach long term goals.
For strategies to be worthwhile it must be consistent with organization objectives which in turn must be consistent with organizational purpose. For example Burger King’s strategy involves their organizational objective of increasing productivity by increasing people and machine efficiency. 12. Tactical planning differs from strategic because tactical planning is short range planning and only extends for a period of time extending about one year or less into the future. Strategic planning is long range and extends from three to five years in the future. 3. A mission statement is a written document created by management that describes what the mission of the company actually is. It is expressed in writing so everyone in the company will have access to it and completely understand what the company is trying to accomplish. 14. Mission statements are written by input by managers as well as some nonmanagers. These people input into the mission statement because they know which direction the company is going and which direction the company need to go to accomplish their organizational goals.