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MGT 3200 Exam 2 Lecture Notes (got 96%)

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MGT 3200
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1Matrix combination productfunctionalCEOfunctionsIndustrial Mechanical Electrical Human Research EngineeringEngineeringEngineeringResourcesDevelopmentBomberPROFighterProjectJETeamsTransportCTHelicopterSMGT 3200PrimitiveAgencyBOSSEmployee 1Employee 2Employee 3Employee 4Employee 5FUNCTIONALCEOVPVP VP VP HRVP RDMarketingProductionAccountingRecruitingSelectingTrainingCompensationPRODUCTCEOVP Product AVP Product BVP Product CVP Product DVP Product EMarketingProductionAccountingHRRDDECISIONMAKING PART ONEIDECISIONMAKING AND MANAGEMENTDecisions are means to an end rather than ends in themselves They are organizational mechanisms through an attempt is made to achieve operative goals and overall organizational goalsThis is not a function of managementBUT its part of each functionDecisionmaking is a key activity at all levels of management Managers also must make decisions related to all functions of management not only to the planning function Thus decisionmaking techniques are applicable and valuable to all management functions2However while decisionmaking is applicable to all management functions it is most closely associated with the planning functionIITYPES OF DECISIONSAProgrammed decisions are specific procedures that have been developed for repetitive and routine problems Thus decisions are programmed to the extent that they are repetitive and routine and a specific procedure has been developed for handling them First LineBNonprogrammed decisions are specific to management problems that are novel and unique They are complex and unstructured Thus there is no established procedure for handling them either because it has not arisen in exactly the same manner before or because is complex or extremely important Such decisions deserve special treatment and more resources Up the leadership triangle you face more and more of these types of problemsdecisions Need more conceptual skillssystems thinkingWhile the two classifications are broad they point out the importance of differentiating between programmed and nonprogrammed decisions The management of most organizations faces great numbers of programmed decisions Such decisions should be treated without expending unnecessary organizational resources on them On the other hand nonprogrammed decisions must be properly identified as this is the type of decision that forms the basis for allocating billions of dollars worth of resources a year Unfortunately its the process involved in this type of decision that we know the least about Traditionally programmed decisions have been handled through rules standard operating procedures etc Operational researchers through the development of mathematical models have facilitated the handling of the types of decisions On the other hand nonprogrammed decisions have traditionally been handled by general problemsolving processes judgment intuition and creativity Unfortunately the advances that modern management techniques made in improving nonprogrammed decisionmaking have not been nearly as great as the advances that they have made in programmed decisionmakingstIdeally the main concern of top management should be nonprogrammed decisions while 1line management should be concerned with programmed decisions Middlelevel management in most organizations concentrates mostly on programmed decisions although in some cases they will participate in nonprogrammed decisionmakingObviously problems arise in organizations where top management expends too much time and effort on programmed decisions one result of this neglect of longrange planning In such cases longrange planning is subordinated to other activities whether the organization is successful or is having problems If the organization is successful this justifies continuing the policies and practices that achieved success If stthe organization experiences difficulty its current problems have 1 priority and occupy the time of top management In either case longterm planning ends up being neglectedIIIDECISIONMAKING CONDITIONSambiguity continuum certainriskuncertaintyA Certainty When a decision is made under conditions of certainty the managers knows all the available alternatives and the outcomes associated with each In this case the manager has perfect knowledge about all alternatives and their outcomes There is no element of chance that intervenes between the alternative and its income The outcomes of alternatives are known with 100 probabilityabsolute certainty Certainty is an ideal situation for managerial decisionmaking Under certainty a manager simply picks the alternative with the best outcome Managerial decisions are seldom made under conditions of certainty This is the exception rather than the rule
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