Senior Management Decisions Essays Examples

For example: If the manager has to decide that the department needs new laptops.

The criteria that determine whether a decision maker is:
So first of all he would identify the problem- Whether the manager is able to identify what is the problem occurring which has to be solved. Regarding which decision has to be made. In this case, if the manager is successful in identifying that the department needs laptops.
Identify decision criteria- That what decisions he could take, and to take that decision what options does he need to have. In this case, for example, the laptop should be of HP, Red in Color, with a 12 GB RAM, 15 Inches in size, etc.
Allocate weights to criteria: Now a manager is a good decision maker if he allocates weights correctly to the criteria. For example, in this case, 15 inches size of the laptop has assigned more weight as compared to the color red.
Develop alternatives: Now the manager has to develop alternatives for the decision he wants to take. For example, the laptop should be of Dell or Toshiba rather than HP. (Bain.com)

Further to assure good decision-making:

A manager would do Analysis of alternatives: The alternatives that he has developed now the manager in order to make good decisions would analyze all the alternatives that he has developed.

Implement: And finally he would implement his choice.

Evaluation: Lastly after implementation he would evaluate the choice that he made.
Assumptions of the Rational Decision-Making Model
The manager assumes that the problem is unambiguous and clear. For example, the department needs laptop.
The decision-maker assumes that he has identified all criteria’s and developed alternatives. He might be missing out on some of the alternatives and not given enough weight to the criteria’s.
Rational decision maker assumes that the alternatives and criteria can be weighted and ranked. The allotted weights might not be enough for giving importance or priorities.
The decision maker also assumes that the particular decision criteria are constant and the weights assigned to each of the criteria will remain stable over time. For example, the manager might think that the criteria’s and weights assigned aren’t enough.
The decision maker assumes that he has the full information with him. For example, the manager assumes that he is fully aware of the prices of laptop.

The rational decision maker assumes that an alternative choice will get back the highest satisfaction or profit.

Judging their credibility can be done by:
Intuitive Decision Making
It is a decision-making process that is used by using one’s intuition that is past experiences, feeling or emotions or event that have occurred in the past.
For example the manufacturer to judge the credibility of that assumption will keep in mind the past record of gas prices and its relationship to the demand of SUV’s and then makes the assumption regarding it.
Maybe in past too, the airline had experienced a demand from customers for an airline without amenities and so they would assume that this is still the case.
If they keep in mind the past records, they might end up making wrong decisions because customer’s choice may vary with time. But the assumption could be correct as well. (Home.ubalt.edu)

Works Cited

Bain.com,. 'How Organizations Make Great Decisions - Bain & Company.' N.p., 2015. Web. 19 Feb. 2015.
Home.ubalt.edu,. 'How Are Decisions.' N.p., 2015. Web. 19 Feb. 2015.