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1、Chapter 13 Decision-making Overview of Managerial Decision-makingImplementation EvaluationIdentification Analysis Selection of an alternativeDecision-making ProcessDecision Makers StyleContentsCondition for Decision-making1Types of Decisions2Cultural Difference3Reading Comprehension41. Conditions fo
2、r Decision-makingPrediction of the outcome / resultCertaintyRiskUn-certainty2. Types of Problems and Decisions (contd)Routine ProblemsHappen regularlyBe solved by standard proceduresProgrammed DecisionRegular decision of dealing with problems2.Types of Problems and Decisions (contd)Nonroutine Proble
3、msProblems that are newNo standard procedures for solutionNonprogrammed DecisionsDecisions that are unique and time-demandingDecisions that generate unique responses2. Types of Problems and DecisionsCharacteristicsProgrammed DecisionsNonprogrammedDecisionsType of problemRoutineNonroutineManagerial l
4、evelLowerUpper / SeniorFrequencyRepetitive, routineNew, unusualInformationReadily available Ambiguous or incompleteGoalsClear, specificVagueTime for solutionShortRelatively longSolution relies onStandard proceduresJudgment and creativity3. Cultural Difference in Making DecisionsLatin AmericansDecisi
5、on-makerJapaneseDecision-makerAmericanDecision-makerIntuition/ feelingCollectiveIndividual-orientedWho is Involved?Decisions can be made:by individualsin consultation with othersby groupsWho is Involved?Group decision-makingthe whole group makes the final decision.Consultative decision-making decisi
6、on-maker get information from others, and makes the final decision himself.Comparison4. Reading #1Decision-making analysis for country investments:StrategyPerformanceContext 4. Reading ComprehensionEconomyPoliticsSocietyStrategyPolicesFiscal policiesMonetary policiesIncomes policiesTrade policesSect
7、or policesGoalsEconomic goalsPolitical goalsSocial goalsPerformanceEconomic indicators -inflation -GNP changes -unemploymentPolitical indicators -Gov. form & change -human rights -political unrestSocial indicators -literacy -life expectancy -housing qualityDecision-making AnalysisDomestic & Internat
8、ional ContextKey to Exercise #11. investing in research on a new cancer drugU.2. investing in US government treasury bonds.C.3. doing a merger with another company.R.4. adopting ISO 9000 standards for your productsC.5. selling your local company to a multinational.R. 6. joining an economic bloc.R.7.
9、 developing a telecommuting policy for certain employees.R.8. giving subordinates more freedom to make decisions.R.9. reducing the number of levels of management in a (your) company R.Key to Exercise #21. reordering inventory when stock falls below a certain amount R.2. deciding where to locate a ne
10、w plantN.3. issuing a written criticism to a worker who has violated a company policyN.4. choosing members of a team to design a new productN.5. deciding on a new computer system for the firmN.6. deciding how many workers to hire for a new projectR.7. deciding whether or not to replace an old machin
11、eN.8. deciding which options to include in a flexible benefit packageNKey to Exercise #3Individual Consultative GroupColombians SwedesJapaneseAmericans Germans IsraelisBritish Chinese Saudi ArabiansFrench EgyptiansItaliansIndiansMexicansKey to Exercise #4EconomicPolitical Social Strategy Growth of G
12、NPPrice stabilityFull employmentPolitical independence,Political stability,Maintaining sameForm of government Improving education,Health & housing Performance Inflation,Changes in GNP,UnemploymentlevelsHuman rights,Political unrest,How often governmentchanges Literacy level, Life expectancy,Quality
13、of housingContext: Domestic Natural resources,Skills of workforceRelationship between institutions Ethnic composition,Religious differencesContext:International Trade patterns,Relations withMNsKey to Exercise #4The article provides a framework for analyzing a country for investment purposes. This ap
14、proach has three major components: strategy, performance, and context. Eachcomponent, or part, has several elements.The performance dimension, for example, has various social, economic, and political indicators. The contextfactor has both domestic and international aspects . All governments develop
15、a national strategythat includes certain goals they want to achieve. In order to achieve those goals, they must develop specific policies. It is sometimes hard to know what a governments strategy is. One way to do this is analyzing its goals . Then decide which goals have the highest priorities. WOR
16、DS & MEANINGS 1. prbable (adj), imprbable (adj), probablity (n), prbably (adv)It is highly probable that Central Asia will increase its production of oil and gas in the next few years. Production in the US and the North Sea will probablydecrease. There is a probability of discovering new oil deposit
17、s in the South China Sea and in the western parts of China itself, in the region of Xinjiang. It is improbable that there will be many other major new discoveries in the next few years. There is also aprobability that other forms of energy such as ethanol (oil from corn) will become commercially ava
18、ilable.WORDS & MEANINGS2. predct (v), predction (n), predictablity (n), predctable (adj)It is hard to predict what direction the world economy will take in the next decade (10-year period). There have been predictions offood and energy shortages, but these have been incorrect. Economists have predic
19、ted great economic development in the countries of Southeast Asia, but there have been problems with some of these predictions as well. Clearly, some things are more predictable than others. Demographic change, for example, has a greater degree ofpredictability than economic or political events.WORDS & MEANING
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