ABSTRACT

The decision-making process defines a decision problem, creates alternative courses of action, and chooses among them using decision criteria. The criteria for choosing among alternatives can include the cost, profit, danger, or pleasure of each alternative. Although decision making focuses on choice, it also intends to reach a goal. Although decision making is a basic function of a manager’s role, nonmanagers also make decisions. Organizations that embrace quality management or use self-managing teams involve many nonmanagers in decision processes. This chapter describes decision maker who refers to a person at any organizational level who chooses a course of action when faced with a decision situation. The two major decision strategies are programmed and unprogrammed. Three dimensions define the characteristics of each strategy. The routine–nonroutine dimension describes whether the decision is common or unusual. The recurring–nonrecurring dimension describes whether the decision happens often or infrequently. The certainty–uncertainty dimension describes the degree of predictability of the decision.