Adopting a managerial decision

Lecture



The purpose of this stage is the review, approval, and adoption by the decision maker (DM) of the developed variant of the managerial decision.

The content of this stage should consist of actions related to the approval of the chosen variant of the MD (managerial decision) in the form of a corresponding document (a resolution, order, directive, or other administrative document) that is mandatory for execution. The document must present detailed information on the content of the adopted managerial decision as a set of measures aimed at achieving the goal of the MD, indicating the target group of employees — the one for which this decision is implemented.

The specification of the provisions and clauses of the order, aimed at implementing the managerial decision, involves the specific allocation of tasks arising from the content of the order, and the assignment of these tasks to specific executors.

Note!

The result of Stage 3 of the life-cycle model of the managerial decision is the adoption and approval by the DM of the variant of the MD presented by the developers, in the form of a document mandatory for execution, in which its detailed description is given.

The actions of Stage 3, taking into account the results of Steps 8 and 9, determine the content of Step 10 of the procedure for constructing a managerial decision based on its life cycle (see Fig. 1.5): Step 10. Adoption of the MD (based on the data of Steps 8 and 9).

created: 2020-11-14
updated: 2026-03-10
218

Was this answer useful?
Choose a quick rating so we can improve the next answer for you.
How satisfied are you?

Comments

To leave a comment

If you have any suggestion, idea, thanks or comment, feel free to write. We really value feedback and are glad to hear your opinion.
To reply

Lectures and tutorial on "Decision theory"

Terms: Decision theory

Decision theory
INTRODUCTION TO THE THEORY OF DECISION MAKING
Building scales for assessing criteria
PROBLEMS OF DECISION-MAKING IN CONDITIONS OF DETERMINATION
4. DECISION MAKING UNDER UNCERTAINTY
4.1 Decision making under conditions of stochastic uncertainty, when conducting experiments is impossible
4.2 Decision Making under Conceptual Uncertainty Based on AiA Saaty
4.3 Making decisions using the apparatus of the theory of fuzzy sets
5 GROUP DECISION-MAKING METHODS
6. Decision Theory. LIST OF REFERENCES
The Bus Stop Dilemma (the Latecomer Dilemma) — a Thought Experiment
The Prisoner's Dilemma (the Bandit Dilemma)
Stevenson's Satanic Bottle Paradox (the Devil's Bottle, the Magic Bottle, the Bottle Imp paradox)
Stevenson's Window Dilemma
METHODOLOGICAL FOUNDATIONS OF DECISION MAKING
BASIC CONCEPTS AND DEFINITIONS of decision theory — system, control and situation
The managerial decision as an element of system control
Constructing a managerial decision on the basis of its life cycle
Defining the goal of a managerial decision and specifying the criteria that implement it
Developing a managerial decision
Adopting a managerial decision
Implementing a managerial decision
Decision theory — concluding remarks
FEATURES OF THE DECISION-MAKING PROCESS
Decision-making strategies
Multi-criteria decision-making strategies
Compensation strategies
Elimination strategies
Psychological aspects of decision making
Short-term and long-term memory
Psychological variants of decision making
Psychological phenomena
The specifics of individual decision development
The environment as a factor giving rise to psychological behaviour phenomena in people
THE INFLUENCE OF THE SPECIFICS OF MANAGEMENT ON THE FORMATION OF MANAGERIAL DECISIONS
Factors that determine the specifics of the controlled system under study and influence other control parameters
Factors in the formation of the decision maker's goal
Factors determined by the specifics of the managerial-decision formation procedure
Useful information and recommendations for constructing a managerial decision
INFORMATION DECISION SUPPORT SYSTEMS
Data, information, knowledge and decisions
Feedback-based regulation
Levels and functions of information systems
Classes of problems solved by information systems
Types of information and categories of information systems
Transaction processing systems and knowledge work systems
Office automation systems
Management information systems
Decision support systems
Main characteristics and composition of an IDSS and the problems it solves
Features of the business decision-making process
OLAP technologies
Data Mining technologies
Statistical packages
Neural networks
Expert systems
Information systems supporting the work of an executive
Summary
DECISION SUPPORT SYSTEMS: METHODOLOGICAL ASPECTS
Defining the concept of a "decision support system"
Methodological aspects of creating a DSS. Possible outcomes of DSS operation
The structure of a decision support system
The structure of a DSS considered in the narrow sense
Summary
MATHEMATICAL FOUNDATIONS OF DECISION MAKING
THE GENERAL STATEMENT OF A DECISION PROBLEM: operations research, systems analysis and their interrelation
Mathematical measurement theory: basic definitions and concepts; attribute, indicator, criterion
Scales in measurement theory
The mathematical model of a problem situation. A problem situation and the general statement of a decision problem
The general statement of a decision problem under certainty
The preference relation of the decision maker
Binary relations
Decision making under certainty
Decision making under uncertainty
A classification of decision problems
Summary
PREFERENCE MODELLING. The mathematical model of preferences in decision problems
Binary relations
The utility function — its definition, study and characteristics; optimisation
Ways of specifying choice functions
A description of the mathematical model of preferences under probabilistic uncertainty
Constructing preference binary relations on a set of probability distributions
Constructing utility functions under probabilistic uncertainty
Constructing risk functions in a decision problem under probabilistic uncertainty
Decision rules in decision problems (DMP) under probabilistic uncertainty
A worked example of a decision problem under probabilistic uncertainty
Summary
MULTI-CRITERIA PREFERENCE MODELS. The mathematical model of a multi-criteria decision problem
Forming the set of criteria
Constructing preference relations for a multi-criteria decision problem
The aggregate criterion and indifference curves
Additive utility functions
Summary
PARETO OPTIMALITY. Pareto dominance
Pareto-optimal (efficient) vector estimates and alternatives, and their properties
Features of the structure of the Pareto–Edgeworth set; the preference cone and its geometric interpretation
The "cost–effectiveness" method
Conditions of Pareto optimality
Constructing and approximating the Pareto–Edgeworth set
Summary
The decision table: uses in software testing and in decision theory
The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS)