KIN 464 1st Edition Lecture 4 Outline of Current Lecture I Problem Solving and Decision Making II Decision Making Responsibility III Types of Decisions IV Conditions of Uncertainty Current Lecture V Problem Solving and Decision Making a Problem solving and decision making are important skills b A problem exists when objectives goals are not met c Problem solving is the process of taking corrective action to meet objectives goals d Decision Making is the process of selecting a course of action that will solve a problem VI Decision Making Responsibility a Both Managers and employees make many decisions b Autonomy to make decisions depends on i Individual s level of authority ii Nature and tradition of the organization iii Personalities of bosses peers and employees iv Expectations or pressures placed on the manager c Every decision should be based on what is good for the organization These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute d Most difficult decisions involve conflicts between manager s own desires and what is best for the organization VII Types of Decisions a Programmed Decisions repetitive routine a decision influenced by some traditional habit or practice a defined rule or set procedure or policy guidelines i When to pay overtime ii How to purchase supplies iii Determining employee holidays iv Who drives organization vehicles v Allows managers to deal with exceptions b Non Programmed Decisions apply to unusual problems or situations that are unique or have never occurred previously and often incorporate risk i How to overcome low employee morale ii Improving the organization s image iii Gaining support of higher administration iv Hiring new employees v Storm damage to facilities VIII Conditions of Uncertainty a The dynamics of the environment dictate that varying degrees of uncertainty that accompany decision making b Certainty i Manager knows exactly what will happen when a decision is made because he she has accurate factual information The outcome is known in advance c Theoretical d Risk i a condition under which a manager can predict with reasonable accuracy future occurrences and assign relative probabilities to them increased risk and greater uncertainty in decision making ii Examples include iii Predicting the weather iv Life expectancy v Normal Employee attrition vi Risk of injuries e Uncertainty i the manager has little or no information for making decision There is no accurate or totally reliable way to calculate objectively the probabilities greatest risk and largest degree of uncertainty in decision making ii Examples include 1 Employee resignations 2 Acceptance of new athletic equipment 3 Starting a new business outsourcing 4 Predicting demand for programs