Decision Making and pertinent study Five-Step Decision-Making Process ? A decision framework is a formal method of making a choice, oft involving both quantitative and soft analyses. ? Managers often use closely variation of the Five-Step Decision-Making Process. Step 1: Obtain randomness Step 2: Make Predictions About prox Costs Step 3: take a shit in An Alternative Step 4: Implement The Decision Step 5: evaluate Performance Feedback ? Much of this chapter focuses on Choosing an alternative. ? The concept of relevance willing be largely used for this stage. The concept of Relevance ? germane(predicate) Information has two characteristics: ? It occurs in the coming(prenominal). ? It differs among the alternatives being considered. ? germane(predicate) Revenues (Costs). ? pass judgment future revenues (costs) that differ among the alternatives. ? If they ar non different among alternatives, they atomic number 18 non relevant. ? Something happened in the past is non relevant. ? Past costs be not relevant drop cost because they argon not avoidable and cannot be changed no issuance what action is taken.
? Quantitative and soft Relevant Information ? Quantitative factors are outcomes that are metric in numerical terms ? both fiscal ( expressed in financial terms) and non-financial (not expressed in monetary terms, but can be roundd numerically). Employee team spirit ? Qualitative factors are outcomes that are difficult to measure in numerical terms ? ? Relevant-cost abstract generally emphasizes quantitative factors. Relevant Information Illustration (Exhibit 11-2) ii alternatives: 1. Do not reorganize, 2. dampen around Reorganize content that a) fires 5 material intervention workers (to reduce project costs) & b) leases in the buff machine Quantitative (mainly financial) analysis. Qualitative factors ? disconfirming effect on employee morale of laying off employees. Types of Decisions ? supererogatory Orders (One-Time-Only) ? Make or vitiate (Insourcing vs....If you want to get a full essay, range it on our website: Ordercustompaper.com
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