Aerospace Organization Management #3 Decision-making can be regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities. Every decision-making process produces a final choice[1] that may or may not prompt action. Decision-making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. Decision-making is one of the central activities of management and is a huge part of any process of implementation.

1. Rational approaches to
decision making.

2. Optimizing
Approach
Satisficing
Approach

3. Optimizing Approach
Selecting the best possible
alternative.

4. 1. Recognize the need for a decision.
2. Establish, rank, and weigh the decision
criteria.
3. Gather available information and data.

5. 4. Identify possible alternatives.
5. Evaluate each alternative with respect
to all criteria.
6. Select the best alternative.

6. Limitations of the
Optimizing Approve.
1. The relative weights
people assign to the criteria
are stable.
2. People have knowledge
of all relevant alternative.

7. 3. People have the ability to
evaluate each alternative
and arrive at an overall
rating for each.
4. People have the self-discipline
to choose the
alternative that rates the
highest.

8. Satisficing Approach
Selecting the first alternative that
meets the decision maker’s minimum
standard of satisfaction.

9. 1. A person’s knowledge of alternatives and
criteria is limited.
2. People act on the basis of a simplified ,
mental abstraction of the real world; this is
influenced by personal perceptions, biases
and so forth.

10. 3. People will take the first alternative that
satisfies their current level of aspiration.
4. An individual’s level of aspiration fluctuates
upward and downward

11. Skill building Question

12. Identify a significant decision recently
made by management of a major company
In the decision you identify ,
did the manager or managers satisfice or
optimize ?

13. Family Firms Sometimes Have to Fire
Family members.
Causes
• Underperforming family members cause
business morale to be artificially crimped.

14. • Employees see family members getting away
with poor performance, and they think they
can as well.
>> Satisficing decision for the employees

15. • Customers wonder about the family’s
commitment to quality and high standards.
• The family itself experiences turmoil.

16. Is firing your family members
optimize or satisficing decision ?
For optimize decision
• The father saw his son performed bad at the
company but other workers performed better
so he decide to fire his son.

17. For satisficing decision
• The father fire the worker out just because he
wanted to run his business with family
members.

18. Sometimes, the only way to repair
broken family relations is to prune the family
business tree and terminate the business
association which helped cause the family
binds to fray in the first place.

19. Source
• http://www.decision-making-confidence.
com/satisfice.html
• http://blogs.wsj.com/experts/2014/08/26/wh
y-family-firms-sometimes-have-to-fire-family/?
KEYWORDS=Company+make+a+decisi
on

20. Presented by
• 1. Kamonwan Ketdam 5710545058
• 2. Natchanon Goyedul 5710545112
• 3. Jakarin Klaynak 5710546674