1 7 Decision Making Flashcards
nonprogrammed decisions
Decisions required for unique and complex management problems
programmed decisions
Situations in which specific procedures have been developed for repetitive and routine problems
decisions
A means to achieve some result or to solve some problems. The outcome of a process that is influenced by many forces
9 steps of the Rational decision making process
- Establish goals and objectives and measure results
- Problem identification & definition
- Establish priorities
- Consideration of causes
- Development of alternative solutions
- Evaluation of alternative solutions
- Solution selection
- Implementation
- Follow up
3 factors that lead to difficulties in identifying the problem
- perceptual problems. negative info may be selectively perceived in such a way as tondistort true meaning or it may be ignored
- Defining problems in term if solutions. Jumping to conclusions
- Identifying symptoms as problems
3 issues to determine problem significance in order to establish priorities?
Urgency. Relates to time
Impact. Related to seriousness of the problem’s effects
Growth tendency. Addresses future considerations
Method for consideration of causes
5 why’s
4 criteria to evaluate pros and cons of alternative solutions
- legality
- ethics
- economic feasibility
- practicality. are capabilities and resources needed available without threatening other projects or operations
The alternative-outcome relationship is based on 4 possible conditioms, what are they?
certainty
uncertainty
risk. decision maker has some probable estimate of the outcome of each alternative
devil’s advocate
An appointed critic of proposed group actions whose intent is to uncover underlying issues with the prevailing direction if the group
solution selection
Optimal solutions often are impossible. decision maker is a satisfier selecting alternative that meets an acceptable (satisfactory) standard
administrative decision making - bounded rationality approach
This approach assumes that decision making is not a perfectly rational process, but rather one that is fraught with constrains and limitations. Though nit optimal, decisions are thought to be satisfactory and acceptable.
satisfying decision
decision that is acceptable and good enough, but if everything where perfect it might not be the perfect solution
When does intuitive decision making takes place?
- high levels of uncertainty about problem, goals, and decision criteria
- there is no history or past experience to draw upon
- time pressures are intense
- excessive # if alternatives difficult to thoroughly analyze
4 behavioral influences on decision making
values
propensity for risk
potential for dissonance
escalation of commitment
7 decision making traps axcording to Paul c Nutt
1 failing to understand people’s concerns and competing claims
2 overlooking people’s interests and commitments
3 defining expectations in an unclear manner
4 limiting the search for alternatives and remedies
5 misusing evaluations of possible alternatives
6 ignoring or downplaying ethical questions
7 neglecting to analyze the results to understand what work and didn’t work
values
the guidelines and beliefs that a person uses when confronted with a situation in which a choice must be made
why decision makers make unethical choices?
- They feel pressure to perform exceptionally well
- Since everybody us doing it they have to remain competitive
- Practice if being secretive and non reveling is considered important in some organizations
- Fail to take responsibility for problems
- Focus con cost vs safety when there’s a choice
cognitive dissonance
Mental state of anxiety that occurs when there is a conflict among individual’s various cognition( ex attitudes and beliefs) after decision has been made
How can you reduce dissonance?
by admitting a mistake was done
Mistakes to reduce dissonance
- seek information that supports wisdom of decision
- selectively perceive(distort) info in a way that supports their decision
- adopt a leas favorable view of the forgone alternative
- minimize importance of the negative aspects of the decision and exaggerate the importance of the positive aspects
escalation of commitment
An increasing adherence to a previous decision when a rational decision maker would withdraw
decision making
individual vs group
Establishing goals and objectives
groups because of greater amount of knowledge
decision making
individual vs group
Identifying causes and developing alternative solutions
individual efforts of team members to ensure broad search in various functional areas
decision making
individual vs group
evaluating alternative solutions
collective judgement of group
decision making
individual vs group
solution selection
group consensus usually results in more risk acceptance
decision making
individual vs group
implementation and follow up
implementation and follow up necessarily rest with individual manager
creativity
Process by which an individual, group, or team produces novel and useful ideas to solve a problem or capture an opportunity
Common characteristics of creative decision makers
perseverance
risk taking propensity
openness
tolerance of ambiguity
tips for becoming more creative
- get out of the office
- be childlike
- be a maverick
- sit on the other side of the room.Break your routime
- ask what if questions
- listen
brainstorming
The generation of ideas in a group through non critical discussion
brainstorming basic rules
- no idea is too ridiculous
- each idea belongs to the group
- no ideas can be critizied
Issues that decrease brainstorming efficiency
- social loafing, team members diesn’t work as hard
- conformity. if fear of critic
- idea production blocking, if wait for turn and forgets
- downward norm setting. if not eell facilitated lowest performing members rend to pull down overall perf
delphi technique
method of decision making that compares anonymous judgements on a topic of interest through a set of sequential questionnaires
nominal group technique
Method of decision making that occurs in a highly structured meeting; group decision is based on mathematical assessment of votes
