- •Systems Thinking
- •You should remember
- •Nonprogrammed Decisions
- •You should remember
- •Tactical Decision-Making
- •Operational Decision-Making
- •The "Smoother" or Problem Avoider
- •The Problem Solver
- •The Problem Seeker
- •Conditions of Risk
- •Conditions of Uncertainty
- •Setting Performance Standards
- •Generation of Alternatives
- •Consequences Evaluation
- •Pilot-Testing and Full Implementation
- •You should remember
Consequences Evaluation
Each proposed alternative action has consequences if implemented and can be evaluated based upon these consequences. An alternative is selected based upon the best possible consequence or outcome. In performing this consequences evaluation, management must ask three questions: (1) Does this alternative achieve the organizational goal? (2) Are there any undesirable consequences or side effects? (3) Can the organization afford this alternative? A negative answer to any of these questions is a strong indication that this alternative is unacceptable. This process is detailed in Figure 5-3.
Note that if the answer is no to any question, the process stops and the alternative is rejected.
Yes |
Does it Accomplish The goal? |
Can the company Accept the side Effects? |
Can the company Afford the Alternative? |
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Alternative Course
of Action
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Figure 53. Process of evaluating the consequences of selecting an alternative.
Pilot-Testing and Full Implementation
Once an alternative or combination of alternatives is chosen, the alternative (s) must be pilot-tested. Management should not proceed to full implementation of the alternative without testing it out on a small scale, unless there is great need to do so. This is because what looks good on paper may not act as predicted in a large-scale application. Thus a pilot test offers the final chance to modify the action plan based upon information derived from the small- scale test. This information, which is used to modify the action plan, is called feedback.
After the pilot test and action plan modification, the selected course of action is fully implemented. After a sufficient period of time the accomplishment of the organizational goal can be measured and evaluated. If the plan does not seem to be working on the larger scale as intended, it can be modified, again based on feedback.
The decision-making process, complete with a feedback loop, is shown in Figure 5-4.
Situational Analysis |
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What Is |
What Should Be |
Standarts
Generation Analysis Implementation
ation
Figure 5-4. Steps in the process of decision-making.
