MGHB02H3 Chapter 11: MGTB23 Chapter 11 Study Guide

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26 Jun 2011
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Decision making is the process of developing a commitment to some course of action. This is a process that involves making a choice, and it also involves making a commitment of resources such as time, money or personnel. A problem exists when a gap is perceived between some existing state and some desired state. Decision making is also a process of problem solving: well-structured problems. In a well-structured problem, the existing state is clear, the desired state is clear, and how to get from one state to the other is fairly obvious. Organizations prefer a program or standardized way of solving a problem when dealing with well-structured problems. Programs short-circuit the decision-making process by enabling the decision-maker to go directly from problem identification to solution. Many of the problems encountered in organizations are well structured and programmed. Decision making is a useful means of solving these problems: ill-structured problems.