Ch. 4 Decision Making Flashcards

1
Q

Decision-Making Process

A
  • Logical, stepwise approach that is used to make a choice between options, to solve a problem, or to resolve a dilemma
  • Decisions usually made at the time they are needed
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2
Q

Contingency Planning

A

Making a decision in advance (in anticipation of need, e.g. disaster plan) so it can be implemented in a timely manner

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3
Q

Steps in the decision-making process

A
  1. Problem Identification
  2. Establishment of decision-making criteria
  3. Weighting of the criteria
  4. Identifying alternatives
  5. Analyzing alternatives
  6. Making the decision
  7. Implementing the decision
  8. Evaluating the outcome
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4
Q

Problem Identification

A
  • Finding a problem and acknowledging it exists
  • Urgency - a manager must feel the need to deal with it
  • Resources must be sufficient to solve the problem (if the resources are inadequate, there is no decision to be made)
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5
Q

Problem

A
  • The difference between what is and what should be
  • May be negative or positive
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6
Q

Establishment of Decision-Making Criteria

A

Determining which factors will have the most relevance in solving the problem
- All significant criteria should be listed (e.g. price of the item required, regulations, expert opinion)
- Insignificant criteria should be eliminated (e.g. color of the packing material)

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7
Q

Weighting of the criteria

A

Assigning each criteria a weight (usually from 1-10) based on the importance of that criteria
- More important factors carry a heavier weight than the less important factors
- All relevant factors should be assigned a weight
- Helps quantify decision-making process

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8
Q

Identifying alternatives

A

Creating a list of different ways to solve the problem (different options available)
- Multiple alternatives should be listed (could be a tangible items, menus, work processes, staffing)

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9
Q

Analyzing alternatives

A

Each alternative should be measured against the same standards, using the relevant criteria that have been established
- Measurement should be done using objective evidence

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10
Q

Making the decision

A

Choosing which of the alternatives will best solve the problem, based on the analysis of alternatives that was done (easier if the choices are limited than if there are a wide range of options)

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11
Q

Implementing the decision

A

Act of carrying out the decision that has been made
- If the implementation is multi-faceted, this step will take planning and organizing
- Communication with staff is essential
- Implementation will determine how the change is viewed

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12
Q

Evaluating the outcome

A

Receiving feedback about the decision: was it effective, efficient, appropriate, adequate?

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13
Q

Types of Decisions

A
  • Programmed decisions
  • Programmable decisions
  • Non-programmed decisions
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14
Q

Programmed decisions

A
  • Made routinely, relying on precedent, (information can be applied from previous similar situations)
  • Frequently used with structured problems (routine and predictable, e.g. purchasing office supplies)
  • Frontline managers tend to make mostly programmed decisions
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15
Q

Programmable decisions

A

Decisions of the routine type which may become programed decisions in the future
- The organization is in a “start-up” mode so there is no precedent
- The manager is new to the job and has not made such decisions in the past

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16
Q

Non-programmed decisions

A
  • Used to resolve unstructured problems
  • Unstructured problems occur when the discrepancy between what is and what should be is new, unusual, and unpredictable (e.g. opening a new facility or clinic)
  • Requires much research and thought
  • Top-level managers tend to make mostly non-programmed decisions
17
Q

Institutional memory

A

Historical precedent of an organization that can be used in the decision-making process
- may help top-level managers make some decisions

18
Q

Decision-Making Styles

A

Problem seeker
Problem solver
Problem avoider

19
Q

Problem Seeker

A
  • Proactive: deals with potential problems before they become obvious
  • Anticipates future problems (does contingency planning)
  • Disadvantage: subordinates must constantly adapt to change (inc. stress)
20
Q

Problem Solver

A
  • Reactive: deals with problems that have become obvious, but may not actively anticipate new problems (if it ain’t broke, don’t fix it)
  • Neither avoids problems, nor seeks them out
21
Q

Problem Avoider

A
  • May not recognize problems
  • May not feel urgency to solve a problem
  • May not feel there are adequate resources
  • Doesn’t want to “rock the boat”
  • Could be a procrastinator
  • May cause subordinates to question the manager’s effectiveness
22
Q

Certainty

A

situation where the outcome of a decision is known and expected

23
Q

Risk

A

the unknown or uncertain factors involved in making a decision
- often associated with higher reward (if successful)

24
Q

Uncertainty

A

situation where the outcomes of a decision are unpredictable

25
Q

Decision Trees

A

Graphic decision tool that uses a tree-like model to illustrate decisions and their possible outcomes

26
Q

Group Decision Making

A

Committees
Task forces
Search committees
Review panels
Editorial boards

May be transient (disbanded once work is done) or ongoing

27
Q

Consensus decisions

A

mutual agreement; acceptable to all

28
Q

Democratic decisions

A

majority rules

29
Q

Accommodation decisions

A

when the groups accepts the position of the dominant member vs the actual decision

30
Q

De Facto decisions

A

decisions made passively with no obvious objections expressed (lack of dissent is interpreted as agreement and decision is implemented)

31
Q

Groupthink

A

group cohesiveness is thought to be more important than the problem being solved (more important to maintain integrity of the group than it is to make a good decision)

32
Q

Methods to facilitate group decision making

A
  • Brainstorming
  • Nominal Group Technique
  • Delphi Technique
    (Used to solicit the active, equitable participation of all members)
33
Q

Brainstorming

A
  • open forum participation (all participants are called on to respond to a problem)
  • goal is to develop a large number of creative alternatives
34
Q

Nominal Group Technique

A
  1. solicit independent ideas (without consulting other team members) and write them down
  2. team members present their ideas (all ideas are recorded)
  3. group discussion
  4. independent ranking of ideas (final decision based on the aggregate ranking)
35
Q

Delphi Technique

A
  • similar to nominal group technique except that members do not meet as a group
  • communicate and analyze ideas through written communication
  • Advantage: no travel costs, easier scheduling, not influenced by other memb.
  • Disadvantage: generation of new ideas limited, more time involved to complete