Nonprogrammer decisions – in response to unique, poorly defined and largely unstructured, and have important consequences to the organization Certainty – all the information the decision maker needs is fully available Risk – future outcomes associated with each alternative are subject to chance Uncertainty – managers may have to come up with creative approaches to alternatives Ambiguity – by far the most difficult decision situation Three decision-making decisions 1.

Classical model Assumptions – Decision maker operates to accomplish goals that are known and agreed upon Normative – describes how a manager should and provides guidelines for reaching an ideal decision 2. Administrative model Bounded rationality – people have limits or boundaries on how rational they can be Satisfying – means that decision makers choose the first solution alternative that satisfies minimal decision criteria Descriptive – how managers actually make decisions–not how they should 3.

Political model Coalition – informal alliance among manages who support a specific goal Six steps in the managerial decision-making process 1. Recognition of decision requirement 2. Diagnosis and analysis of causes 3. Development of alternatives 4. Selection of desired alternatives 5. Implementation of chosen alternatives 6. Evaluation and feedback Diagnosis – analyze underlying causal factors associated with the decision tuition Selection of desired alternatives: 1 .

Risk propensity – willingness to undertake risk with the opportunity of gaining an increased payoff 2. Implementation – using managerial, administrative, and persuasive abilities to translate the chosen alternative into action Decision styles – Differences among people with respect to how they perceive problems and make decisions Directive style – People who prefer simple, clear-cut solutions to problems Analytical style – Complex solutions based on as much data as they can gather Conceptual style – Consider a broad amount Of information

Behavioral style- Have a deep concern for others as individuals Summary of chapter 1 3 adhering -? act of influencing people, commanding people, and guiding them Common activities: 1 Planning – devises strategy, sets direction, and creates vision 2. Organizing – gets people on board of strategy 3. Directing – empowers people 4. Controlling – motivates, inspires, gives sense Of accomplishment Leadership traits 1. Intelligence 2. Personality 3. Physical Leadership styles 1. Delegating 2. Selling 3. Participating 4. Telling New leaders take note: 1 . General advice – take advantage of the transition period .