Download Chp06-2 Decision Making

Personal Decision Making Styles
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-1
Personal Decision Making Styles

Directive
1. Used for Quick Decisions
2. May Only Consider a few Alternatives
3. Generally Efficiency Based Managers
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-2
Personal Decision Making Styles

Analytical
1. Acquires as Much Data as Possible
2. Carefully Considers all Alternatives
3. Rational, Objective Decisions
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-3
Personal Decision Making Styles

Conceptual
1. More Socially Oriented
2. Seeks Group Consensus
3. Rely on Information from People and
Systems
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6-4
Personal Decision Making Styles

Behavioral
1. Deep Concern for Others
2. Understands Feelings of Those Involved
3. Concerned with Personal Development
Affected by Decisions
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6-5
Personal Decision Framework
Situation:
· Programmed/non-programmed
· Classical, administrative,
political
· Decision steps
Personal Decision Style:
·Directive
·Analytical
·Conceptual
·Behavioral
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Decision Choice:
·Best Solution to Problem
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Common Decision Making Biases
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-7
Common Decision Making Biases

Availability Bias –
Making Decision from Past Experiences Only
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-8
Common Decision Making Biases


Availability Bias
Representative Bias –
Generalizing From a Small Sample or Single Event
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-9
Common Decision Making Biases



Availability Bias
Representative Bias
Anchoring and Adjusting Bias –
Making Decisions on the Initial Figure
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-10
Common Decision Making Biases




Availability Bias
Representative Bias
Anchoring and Adjusting Bias
Escalation of Commitment Bias –
Committing to a Project Despite Negative Information
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-11
Resistance to Decision Making
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6-12
Resistance to Decision Making

Relaxed Avoidance –
Managers Fail to See Risk and Don’t Take any Action
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-13
Resistance to Decision Making


Relaxed Avoidance
Relaxed Change –
Managers Look for Easiest Way Out
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-14
Resistance to Decision Making



Relaxed Avoidance
Relaxed Change
Defensive Avoidance –
Manager is Unable to Find Good Alternatives so He/She
Denies Any Risk, Procrastinates or Passes the Buck
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-15
Resistance to Decision Making




Relaxed Avoidance
Relaxed Change
Defensive Avoidance
Panic –
Manager Makes Irrational Decisions or is Unable to Make
Any Decision
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-16
Group Decision Making
Questions to Determine Group Participation
in Decision Making







Decision significance
Importance of commitment
Leader expertise
Likelihood of commitment
Group support for goals
Group expertise
Team competence
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-17
Group Decision Making
Advantages
1. Greater Pool of Knowledge
2. Different Perspectives
3. Intellectual Stimulation
4. Better Understanding by Employees
5. Deeper Commitment to the Decision
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-18
Group Decision Making
Disadvantages
1. A Few people May Dominate
2. Groupthink
3. Satisficing
4. Goal Displacement
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-19
Group Decision Making
Concerns for Managers
1. Less Efficient
2. Size Affects Quality Inversely
3. Group May Be Too Confident
4. Knowledge Counts
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-20
Group Decision Making
Best Times to Utilize Groups
1. When It Can Increase Quality
2. When It Can Increase Acceptance
3. When It Can Increase Development
© 2006 by South-Western, a division of Thomson Learning. All rights reserved.
6-21
Illustration –
Baggage Handling Improvement Team
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6-22
Management Hot-Seat Case
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6-23