Chapter 4 - Decisions vs. Problems
Mind map illustrates the differences -- and the relationship between decision-making and problem-solving in management.
Chapter 4 - Decisions & Problems
Decision-Making
assessing risk when weighing outcomes (IF this happens, THEN we'll do x)
what-if scenarios appropriate
strategizing, looking ahead to maximize utility with decision outcome
making choices under conditions of scarcity
limited time, budget, resources
Problem Solving
could be unknown risk/surprise
non-programmed decision-making: what do we do now?
could be known/anticipated risk
programmed decision: follow the plan
mitigating risk - still have to live with outcomes of decisions
