151-0328/01 – Management Methods and Decision Making (MRR)

Gurantor departmentDepartment of Mathematical Methods in EconomicsCredits4
Subject guarantordoc. Ing. Václav Friedrich, Ph.D.Subject version guarantordoc. Ing. Václav Friedrich, Ph.D.
Study levelundergraduate or graduate
Study languageCzech
Year of introduction2010/2011Year of cancellation
Intended for the facultiesEKFIntended for study typesBachelor
Instruction secured by
LoginNameTuitorTeacher giving lectures
FRI02 doc. Ing. Václav Friedrich, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit 1+2

Subject aims expressed by acquired skills and competences

- Get a basic knowledge of management methods and decision-making in the economy. - Get to know the selected methods of decision making under certainty, risk and uncertainty and the foundations of game theory. - Understand and be able to describe the design of selected economic problems using basic methods of decision making. - Be able to solve selected decision-making problems using MS Excel spreadsheet.

Teaching methods

Lectures
Tutorials
Project work

Summary

Decision making is one of the basic management activities, whose quality largely affects the efficiency and economic results of the follow-up activities. In this subject students use knowledge gained in the exact (mathematics, statistics, operations research), theoretical (micro- and macroeconomics) and special economic subjects (marketing, management, business administration, etc.) and learn to solve various decision making problems from the areas of economy and everyday life.

Compulsory literature:

RENDER, Barry, Ralph STAIR a Michael HANNA. Quantitative Analysis for Management. 11th Edition. Prentice Hall, 2011. ISBN 978-0132149112.

Recommended literature:

WISNIEWSKI, Mik. Quantitative Methods for Decision Makers. 5th Edition. Prentice Hall, 2010. ISBN 978-0273712077. ANDERSON, David, Dennis SWEENEY, Thomas WILIAMS, Jeffrey CAMM a Kipp MARTIN. An Introduction to Management Science: Quantitative Approaches to Decision Making. 13 Revised Edition. South-Western College Pub, 2011. ISBN 978-1111532222.

Way of continuous check of knowledge in the course of semester

The course is taught in presence form using eLearning tools (blended learning). All credit tasks are timed, monitored automatically by using the calendar and other tools of Moodle CMS. Compensatory credit tasks: - Essay (20 points, 10 points minimum) - Theoretical self-test (25 points, 13 points minimum) - Project seminar with final presentation (40 points, 20 points minimum) Total credits required to obtain credit and succesfully finish the subject is 43 points.

E-learning

The course is taught in presence form using eLearning tools (blended learning) in CMS Moodle environment.

Další požadavky na studenta

- Ability to work with the PC as an ordinary user - Common sense and Logical thinking

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

The course ”Management Methods and Decision Making“ is designed for full-time study with an electronic support (so-called blended learning). Organized education is concentrated in lectures and tutorials. Lectures are held in the first 7 weeks of the semester in the range of 2 hours per week (14 hours). Seminars are held every week in the range of 2 hours, all the exercises are in the computer lab. Required Software: Microsoft Excel, Gambit, Sanna. The study materials for all lectures and tutorials are available on the Internet (Moodle CMS) in PDF format or as data files. SYLLABUS OF LECTURES: 1. Basic concepts of decision theory decision-making processes and problems, the structure and elements of decision-making processes, the classification of decision-making models, information in decision making 2. Analysis of the decision problem analysis and formulation of decision problems, influense diagrams, cognitive maps, six-word chart, Pareto diagram, causal diagnosis, analysis of force field 3. Methods of decision making under certainty multi-criteria evaluation of alternatives, selection and weighting of criteria, creation of options, determining the consequences and evaluation of options 4. Group decision making rate of participation in decision-making styles, decision making, group decision making and its properties, brainstorming, Delphi method, Vroom - Yetton model for decision-making style selection 5. Methods of decision making under risk and uncertainty conditional and full likelihood of subjective probability, decision matrix, decision making rules for risk and uncertainty, the value of information 6. More-stage decision-making processes probabilistic and scenario trees, Bayesian decision trees, sensitivity analysis, the concept of risk and utility functions 7. Decision-making methods based on game theory matrix games, antagonistic games, Nash's optimum and Minimax, the value of the game, pure and mixed strategy, principle dominated, non-antagonistic games, cooperative and non-cooperative games SYLLABUS OF TUTORIALS: 1. Modelling and Simulation in Excel random processes, random number generator, simulation of random distribution, the law of large numbers, Monte Carlo 2. Solver tool in Excel, linear optimization optimization problem in Excel, transportation problem, production plan, assignment problem 3. Analysis of the decision problem influense diagrams, cognitive maps, six-word chart, Pareto diagram, causal diagnosis, analysis of force field 4. Selection and determination of criteria weights multi-criteria evaluation of alternatives, selection and weighting of criteria, allocation methods, paired comparisons, Saaty method, decomposition scales 5. Methods of Multicriterial evaluation of options production options, multicriteria utility function, the order method, the method of linear utility function, method basic variants, Pattern method, Saaty's method 6. Group decision making brainstorming and brainwriting, 6-3-5 method, method of EUR Delphi method, a Vroom - Yetton model, selection of decision-making style 7. Refresher Exercise Preparation for seminar work, presentation of example of the selected decision problem 8. Methods of decision making under risk and uncertainty decision matrix, decision making under uncertainty, the criteria of Wald, Hurwitz (maximax and fifty-fify), Laplace, and Savage, decision making under risk, expected utility rule, the rule of the expected value, respectively the value and variance 9. Multi-stage decision-making processes probabilistic and scenario trees, Bayesian decision trees, the optimal way in the decision tree 10. Matrix games with a zero-sum payouts matrix games, Minimax, saddle point, the value of the game, dominated by the principle, pure and mixed strategies, properties of optimal strategies 11. Matrix games with nonzero sum payments cooperative and non-cooperative games, games with prizes and transfer without transfer prizes, prisoner's dilemma, marital dilemma 12. - 14. Seminar projects presentation

Conditions for subject completion

Full-time form (validity from: 2010/2011 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Exercises evaluation Credit 85 (85) 43
        Essay Other task type 20  10
        Self Test Written test 25  13
        Project Presentation Project 40  20
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2011/2012 (B6208) Economics and Management (6208R020) Business Economics (00) Business Economics P Czech Ostrava Choice-compulsory study plan
2011/2012 (B6208) Economics and Management (6208R020) Business Economics (01) Business Economics P Czech Valašské Meziříčí Choice-compulsory study plan
2010/2011 (B6208) Economics and Management (6208R020) Business Economics (00) Business Economics P Czech Ostrava 2 Choice-compulsory study plan
2010/2011 (B6208) Economics and Management (6208R020) Business Economics (00) Business Economics P Czech Ostrava 3 Choice-compulsory study plan
2010/2011 (B6202) Economic Policy and Administration (6202R010) Finance (00) Finance P Czech Ostrava 3 Choice-compulsory study plan
2010/2011 (B6202) Economic Policy and Administration (6202R027) National Economy P Czech Ostrava 2 Choice-compulsory study plan
2010/2011 (B6202) Economic Policy and Administration (6202R055) Public Economics and Administration (00) Public Economics and Administration P Czech Ostrava 2 Choice-compulsory study plan
2010/2011 (B6202) Economic Policy and Administration (6202R055) Public Economics and Administration (00) Public Economics and Administration P Czech Ostrava 3 Choice-compulsory study plan
2010/2011 (B6207) Quantitative Methods in Economics (6207R015) Managerial and Decision Making Methods in Economics P Czech Ostrava 3 Compulsory study plan
2010/2011 (B6208) Economics and Management (6208R020) Business Economics (01) Business Economics P Czech Valašské Meziříčí 2 Choice-compulsory study plan
2010/2011 (B6234) Quantitative Methods and Decision Making in Economics (6207R015) Managerial and Decision Making Methods in Economics P Czech Ostrava 3 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner