Download DecisionMaking

Decision Making
1
Write Smart Co. has a very specific decision making
process that it follows for handling client problems that has
been quite successful for the firm. The first stage is
_______, in which the team members at Write Smart help
the client figure out exactly what the problem is that it
faces.
A)
B)
C)
D)
Identifying and diagnosing the
problem
Evaluating the results
Generating alternative solutions
Implementing the decision
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Introduction

Making decisions under conditions of risk
and uncertainty is one of the most
important activities that managers engage
in.

Generally, there is a lack of information and
a limited amount of time available to make
the decision.

Procrastinating and not making a decision
sometimes has greater risk than making it.
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Rational or
?
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Rational or
Exercise:
 With your partner solve the
two problems on pages 1& 2
 You will have 15 minutes to
complete both exercises…
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Solution - Warehouse
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Creative Problem Solving Assessment
Complete Pages 3 - 5
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Advantages and Disadvantages of
Group Decision Making
Advantages
 Increased acceptance
 Greater pool of
knowledge
 Different
perspectives
 Greater
comprehension
 Training ground
Disadvantages
 Social pressure
 Minority domination
 Logrolling
 Goal displacement
 “Groupthink”
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The
Abilene
Paradox
with
Dr. Jerry B. Harvey
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Decision Making

The process of identifying
problems and opportunities and
resolving them.

Management decisions can be
made by managers, teams, or
individual employees, depending
on:
The scope of the decision, and
The design and structure of the
organization.
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Characteristics of Management
Decision Making
Programmability
Decision Scope
Uncertainty
Conflict
Risk
Crisis
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Stages of Decision Making
Identifying
and
diagnosing
the problem
Generating
alternative
solutions
Evaluating
alternatives
Selecting
the best
alternative
Implementing
the decision
Evaluating
the decision
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Typical problems
that require decisions

A high level of employee turnover.

A reduction in firm profits.

Unacceptable levels of “shrinkage” in a store.

Lower than planned quality of finished goods.

An unexpected increase in workplace injuries.

The invention of a new technology that can
increase the productivity of the workforce.
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Evaluating Alternatives

Decision criteria should be related to the
performance goals of the organization and its
subunits.

Decision criteria can include:
 Costs
 Profits
 Timeliness
 Whether the decision will work
 Fairness
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Evaluating Alternatives
(cont)
A
practical way to apply decision
criteria is to consider:
Decision quality – aspect of decision making
based on such facts as costs, revenues, and
product design specifications.
Decision acceptance – aspect of decision
making based on people’s feelings.
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Approaches to selecting
the best alternative
 Optimizing
– selecting
the best alternative from
among multiple criteria.
 Satisfying
– selecting the
first alternative solution
that meets a minimum
criterion.
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Managing Group
Decision Making
Leadership Style
Devil’s Advocate Role
Stimulating Creativity
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Leader Decision Making Styles
 Decide
and persuade
 Discover facts and decide
 Consult and decide
 Consult with group
and decide
 Group decision
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Decision Making Techniques to
Stimulate Group Creativity
Brainstorming
Delphi
Technique
Storyboarding
Nominal Group
Technique
(NGT)
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Skills for Decision
Making Process
 Time
management skills
To make good decisions, managers need
time to understand the problem and
develop creative solutions.
 Delegation
skills
Managers who know how to delegate are
able to accomplish more than those who
feel the need to be involved in every
decision, no matter how trivial.
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Why Leaders Don’t Delegate







Insufficient time
Perception that the job is too important
Leader’s belief that he/she can do it better
Leader enjoys doing the job
Lack of confidence in subordinates
Fear subordinates might do job better
Concern that the Boss will think the leader
isn’t working
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Effective Time
Management Practices

Plan a list of things that need to be done
today.

Plan weekly, monthly, and annual schedules
of activities.

Schedule difficult and challenging activities
when you are at your highest level of energy
and alertness.

Set deadlines.
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Effective Time
Management Practices (cont)
 Answer
phone messages
and e-mail in batches
during a lull in your work schedule.
 Have
a place to work uninterrupted.
 Do
something productive during nonproductive activities.
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Effective Delegation






(cont)
Keep communication channels open.
Allow employees to do the task the way
they feel comfortable doing it.
Trust employees’ capabilities.
Check on the progress of the assignment.
Hold the employee responsible for the
work.
Recognize what the employee has done,
and show appropriate appreciation.
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Rules for Successful Delegation
1.
2.
3.
4.
5.
6.
Describe the task
Outline expected
results
Discuss resources
Confirm
understanding
Solicit ideas
Establish methods of
working and reporting
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Guidelines for Giving Direction
Use familiar words
 Define new terms
 Use logical sequencing
 Provide a visual model or demonstration
 Check for understanding
 Allow the listener to clarify instructions

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DELEGATION IS...
ACCOMPLISHING
ORGANIZATIONAL
PURPOSES THROUGH THE
PROPER DEVELOPMENT
OF PEOPLE
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