The Unstructured Problem Usually Faced by the Upper Level Manager Essay Example
The Unstructured Problem Usually Faced by the Upper Level Manager Essay Example

The Unstructured Problem Usually Faced by the Upper Level Manager Essay Example

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  • Pages: 5 (1247 words)
  • Published: March 29, 2017
  • Type: Case Study
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The unstructured problem usually faced by the upper level manager. This happen because the lower level manager handle the routine decision themselves and let the upper level manager deal with the decision they find unusual or difficult. The table below will shows us the different between programmed and non-programmed decisions. CharacteristicProgrammed DecisionNonprogrammed Decision Type of problemStructuredUnstructured Managerial levelLower levelUpper level FrequencyRepetitive, routineNew, unusual InformationReadily availableAmbiguous or incomplete GoalsClear, specificVagueTime frame for solutionShortRelatively long Solution relies onProcedures, rules, policiesJudgment and creativity Decision – Making Conditions They are three characteristic of decision that will faced by the managers 1. Certainty Certainty means the situation when a manager can make accurate decision because the outcome of every alternative is known.

2. Risk Risk means the situation when manager is able to estimate the like

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lihood of certain outcomes. The ability to assign probabilities may be the result of past personal experiences or secondary information. 3. UncertaintyUncertainty means the situation when manager has neither certainty nor reasonable probability estimates available.

Decision – Making Styles Decision making styles are differ along two dimensions. The first is an individual’s way of thinking. The other dimensions is describes an individual’s tolerance for ambiguity. When we diagram these two dimensions, we get four decision- making styles.

They are directive, analytic, conceptual, and behavioral. Analytic Conceptual Directive Behavioral 1. Directive style ?A decision- making style characterized by low tolerance for ambiguity and a rational way of thinking.This type is making fast decision and focus on short run because they are efficient and logical.

2. Analytic style ?A decision- making style characterized by a high tolerance for ambiguity and a rational way of thinking. This typ

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is the careful decision makers with the ability to adapt or cope with unique situations. Because of it they want more information before making decision and consider more alternative.

3. Conceptual style ?A decision- making style characterized by a high tolerance for ambiguity and intuitive way of thinking. This type focus on the long run and are very good at finding creative solutions to problems.They also look at many alternatives.

4. Behavioral style ?A decision- making style characterized by a low tolerance for ambiguity and intuitive way of thinking. This type is concerned about achievements of those around them. They avoid conflict.

Acceptance by others is important to this decision- making style. Decision- Making Biases and Errors When manager make decision, they not only use their own particular style, but many also use “ rules of thumb” or heuristic. Heuristic means rules of thumb that managers use to simplify decision making.When decision maker end to think they know more than they do or hold unrealistically positive views of themselves and their performance, they are exhibiting the overconfidence bias.

The immediate gratification bias describes decision makers who ted to want immediate rewards and to avoid immediate costs. The anchoring effect describes when decision makers fixate on initial information as a starting point. And when decision makers selectively organize and interpret event based on their biases perceptions, they using the selectively perception bias.Decision makers who seek out information that reaffirms their past choices and discount information that contradicts past judgments exhibit the confirmation bias. The framing bias is when decision makers select and highlight certain aspects of a situation while excluding others.

The availability bias is when

decision makers tend to remember events that are the most recent and vivid in their memory. When decision makers assets the likelihood of an event based on how closely it resembles other events or sets of events, it called the representation bias.The randomness bias describes when decision makers try to create meaning out of random events. The sunk costs error is when decision makers forget that current choices can’t correct the past. Decision makers who are quick to take credit for their successes and to blame failure on outside factors are exhibiting to self-serving bias.

The hindsight bias is the tendency for decision makers to falsely believe that they would have accurately predicted the outcomes of an event once that outcome is actually known. Mainly being aware of the negative effects of these decision error and biases, and then not using them.Beyond that, manager also should pay attention to “how” they make decisions and try to identify the heuristic they typically use and critically evaluate how appropriate those are. Finally, manager, might want to ask those around them to help identify weakness in their decision- making style and try to improve on them. Summing Up Managerial Decision Making Every manager wanted to make good decision, and to reach that they must choose the best alternative to solve the problem.

Their decision- making process is affected by four factors. They are the decision- making approach, he decision- making conditions, the type of problem, and their own styles of decision making. In addition, certain decision- making errors and biases may impact the process. Each factor plays a role in determining how the manager makes a decision.

Decision

Making for Today’s World Most managers are making one decision after another, and as if that were not challenging enough, more is at stake than ever before. To make effective decision in today’s fast- moving world, here are some guidelines 1. Understand cultural differences The cultural differences can be seen in five areas Identifying Problem Managers might come from a culture that is focused on problem solving. Or their culture might be one of situation acceptance. ?Searching for Information Managers might come from a culture that gathers facts or from a culture that is more intuitive in gathering ideas and possibilities.

?Developing Alternative ?Making Choices ?Implementing Alternative Managers might be from a culture that is quick or slow, innovative or disruptive, managed from the top or involves participation from all levels within the organization, and managed by an individual or a group. .Know when it’s time to call it quits When it’s evident that a decision isn’t working, don’t be afraid to pull the plug. Many decision makers block or distort negative information because they don’t want to believe that their decision was bad.

They become so attached to the decision that they refuse to recognize when it’s time to move on. In today’s dynamic environment, this type of thinking simply won’t work 3. Do use an effective decision- making process Effective decision- making process six characteristics 1. It focuses on what’s important 2.

It’s logical and consistent . It acknowledges both subjective and objective thinking and blends analytical with intuitive thinking 4. It requires only as much information and analysis as is necessary to resolve a particular dilemma 5. It encourages and guides the

gathering of relevant information and informed opinion 6. It’s straightforward, reliable, easy to use, and flexible. Making decisions in today’s fast- moving world isn’t easy.

Successful managers will need good decision- making skills to effectively and efficiently plan, organize, lead, and control. Becoming Manager Pay close attention to decisions you make and how you make them. ?When you feel you haven’t made a good decision, asses how you could have made a better decision. Which step of decision- making process could you have improved? ?Work at developing good decision- making skills.

?Remember that the quality of your decisions is what ultimately will make you valuable to an organization. ?Read books about decision making. ?Ask people you admire for advice on how they make good decisions. ?Will these suggestions help you be a better decision maker? You’ll have to decide.

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