10erobbins_PPT06 - r.pptVIP

* * * * * * * * * * * * * * * * * * * * * Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6–* Types of Programmed Decisions Procedure A series of interrelated steps that a manager can use to respond (applying a policy) to a structured problem. Rule An explicit statement that limits what a manager or employee can or cannot do. Policy A general guideline for making a decision about a structured problem. Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6–* Policy, Procedure, and Rule Examples Policy Accept all customer-returned merchandise. Procedure Follow all steps for completing merchandise return documentation. Rules Managers must approve all refunds over $50.00. No credit purchases are refunded for cash. Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6–* Problems and Decisions (cont’d)(repetition of problems) 3.2 Unstructured Problems Problems that are new or unusual and for which information is ambiguous or incomplete. Problems that will require custom-made solutions. Nonprogrammed Decisions Decisions that are unique and nonrecurring. Decisions that generate unique responses. Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6–* Exhibit 6–7 Programmed Versus Nonprogrammed Decisions Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6–* 4. Decision-Making Conditions 4.1 Certainty A situation in which a manager can make an accurate decision because the outcome of every alternative choice is known. 4.2 Risk A situation in which the manager is able to estimate the likelihood (probability) of outcomes that result from the choice of particular alternatives. Copyright ? 2010 Pearson Education, Inc. Publishing as Prentice Hall 6–* Exhibit 6–8 Expected Value for Revenues  from the Addition of One Ski Lift Expected Expected × Probability = Value of EachEvent Revenues Alternative Heavy snowfall $850,000 0.3 = $255,000 Normal snowfall 725,000