Ch. 4 Decision Making

Question 1

Decision-Making Process

Answer 1

• 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

Question 2

Contingency Planning

Answer 2

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

Question 3

Steps in the decision-making process

Answer 3

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

Question 4

Problem Identification

Answer 4

• 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)

Question 5

Problem

Answer 5

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

Question 6

Establishment of Decision-Making Criteria

Answer 6

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)

Question 7

Weighting of the criteria

Answer 7

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

Question 8

Identifying alternatives

Answer 8

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)

Question 9

Analyzing alternatives

Answer 9

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

Question 10

Making the decision

Answer 10

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)

Question 11

Implementing the decision

Answer 11

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

Question 12

Evaluating the outcome

Answer 12

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

Question 13

Types of Decisions

Answer 13

• Programmed decisions
• Programmable decisions
• Non-programmed decisions

Question 14

Programmed decisions

Answer 14

• 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

Question 15

Programmable decisions

Answer 15

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

Question 16

Non-programmed decisions

Answer 16

• 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

Question 17

Institutional memory

Answer 17

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

Question 18

Decision-Making Styles

Answer 18

Problem seeker
Problem solver
Problem avoider

Question 19

Problem Seeker

Answer 19

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

Question 20

Problem Solver

Answer 20

• 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

Question 21

Problem Avoider

Answer 21

• 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

Question 22

Certainty

Answer 22

situation where the outcome of a decision is known and expected

Question 23

Risk

Answer 23

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

Question 24

Uncertainty

Answer 24

situation where the outcomes of a decision are unpredictable

Question 25

Decision Trees

Answer 25

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

Question 26

Group Decision Making

Answer 26

Committees Task forces Search committees Review panels Editorial boards May be transient (disbanded once work is done) or ongoing

Question 27

Consensus decisions

Answer 27

mutual agreement; acceptable to all

Question 28

Democratic decisions

Answer 28

majority rules

Question 29

Accommodation decisions

Answer 29

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

Question 30

De Facto decisions

Answer 30

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

Question 31

Groupthink

Answer 31

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)

Question 32

Methods to facilitate group decision making

Answer 32

- Brainstorming - Nominal Group Technique - Delphi Technique (Used to solicit the active, equitable participation of all members)

Question 33

Brainstorming

Answer 33

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

Question 34

Nominal Group Technique

Answer 34

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)

Question 35

Delphi Technique

Answer 35

- 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