Methods of handling multiple goals page 159

With some methods, the decision maker needs to search the solution space for an alternative that provides the required attainmemt of all goals while searching for an efficient solution.

Utility theory : Utility theory is an attempt to infer subjective value, or utility, from choices. Utility theory can be used in both decision making under risk (where the probabilities are explicitly given) and in decision making under uncertainty (where the probabilities are not explicitly given). More...

Goal programming : It can be thought of as an extension or generalisation of linear programming to handle multiple, normally conflicting objective measures. Each of these measures is given a goal or target value to be achieved. More...

Expression of goals as constraints

A points system

Multiple goals page 158

Managers want to attain simultaneous goals, some of which may conflict.

Difficulties of analysing multiple goals:

• Difficult to obtain explicit of the orgs goals
• Decision mkaer may change importance of assigned to specific goals over time or for different decision scenarios
• goals viewed differently at different levels of the org
• goals change in response to change in the org and environment
• relationships between alternatives and their role in determinning goals may be difficult to quantify
• complex probs are solved by groups of decision mkaers, each of whom has a personal agenda
• participants view the importance / priorities of goals differently

Satisfaction of multiple goals page 150

• One decision-making process must try to meet more that one goal.
• Simultaneous goals are often conflicting – achieving one goal makes it harder to achieve the other(s).
• Try to determine a single measure of effectiveness that judges the achievement of all goals.
• Sometimes very difficult to do.

A decision situation in which alternatives are evaluated with several sometimes conflicting goals.

Methods:

• Utility theory.
• Goal programming.
• Linear programming with goals as constraints.
• Point allocation systems.