V.

• Contemporary Structured Decision-Making Models 

  • considered structured models as they offer a more systematic way of solving a problem, utilizing a step-by-step process.
•  Kepner-Tregoe Matrix Model (1960s)

  by Charles Kepner and Benjamin Tregoe

  • systematic way of evaluating alternatives by implementing a rational process of analyzing aspects of a situation or problem. 
  • aims to remove the pressure from planners and minimize the risk of chosen alternatives 
• Situation appraisal - manager clarifies aspects of the scenario and outlines possible causes. 
•  Problem analysis - root cause of the problem is identified. 
• Decision analysis - Various solutions and courses of action are identified and evaluated by conducting risk analysis. 
• Potential problem analysis A possible final decision is determined and carefully scrutinized.
• The Kepner-Tregoe model 

  • a rigorous process and requires preparation from managers who wish to employ the model in their planning.
• Vroom-Yetton-Jago Decision Model 

  by Victor Vroom and Philip Yetton in 1973

  revised in 1988 with Arthur Jago. 

  • focuses not on identifying possible decisions, but on selecting the best leadership style suited for planning and decision-making.
• Autocratic I (A1) - The leader is the sole decision-maker. 

  • Using all the information available, the manager makes the decision for the firm. 
• Autocratic II (A2) - The manager gathers pertinent information from members of the group but they do not know the purpose of such information. 

  • There is still no involvement from the group members. The manager still decides based on the information gathered
• • Consultative I (C1) This leadership style lets the group members know the problem situation but the final decision still rests on the manager. 
•  Consultative II (C2) - The manager discusses the situation with the group and gathers suggestions from the group members. 

  • The manager makes the final decision.
• • Group II (G2) All the group members are responsible for coming up with the final decision. 
  • The manager presents the problem and acts as the facilitator in the process. 
  • He or she lets the group agree on the final selection of the alternative.
• Observe- Orient-Decide-Act (OODA) Loop Model 

  by US Air Force Colonel John Boyd 

  • military tactics in business situations. 
  • decision making model for air combat.
•  Observe 

  • the manager should gather as much information as possible regarding the business environment. 
  • He or she scans the environment and observes what the competitors are doing.
  • how customers respond to the product or service the company currently offers 
  • SWOT and PEST analyzes to gather information.
•  Orient

  • closer look at the information gathered during the first stage. 
  • manager filters the information gathered and concentrates on those that are relevant.
  • manager should determine at this stage are the expected roi, forecasted sales, possible cost, and payback period of alternative investments.
• Decide 

  • manager now decides and chooses the best possible alternative. 
• Act

  • Once an alternative is chosen, the manager puts the chosen plan into action and supervises its implementation