Decision Making

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Decision Making

  1. 1. Learning Outcomes – Decision Making <ul><li>Explain the satisfying model for decision making </li></ul><ul><li>Describe the workings of the implicit favorite model for decision making </li></ul><ul><li>Outline the maximizing or rational decision making model </li></ul><ul><li>Discuss the various group decision techniques </li></ul>
  2. 2. Decision-Making <ul><li>The key to making a decision is to understand the problem. </li></ul>
  3. 3. Three Models for Decision-Making <ul><li>Satisficing Model </li></ul><ul><li>Implicit Favorite Model </li></ul><ul><li>Maximizing or Rational Decision-Making Model </li></ul>
  4. 4. The Satisficing Model Expand on alternatives Does alternative meet satisficing Criteria ? Select first alternative that meets criteria and is considered “ good enough” Problem identified Problem simplified Satisficing criteria set Identify alternatives Compare alternatives one at a time against criteria YES NO
  5. 5. The Implicit Favorite Model Need for a decision is determined Select an implicit favorite alternative Identify other alternatives Establish criteria to match implicit favorite Compare alternatives with implicit favorite criteria Confirm implicit favorite Select implicit favorite 1 2 3 4 5
  6. 6. Problems Situations in Life Priority Problem Causes for Problem Most Likely Cause Make A Decision Alternatives 1 2 3 4 5 6 Determining the need for a decision
  7. 7. Six Steps to the Rational/Maximizing Decision-Making Model <ul><li>Identify the need for a decision </li></ul><ul><li>Identify the decision criteria </li></ul><ul><li>Allocate weights to the criteria </li></ul><ul><li>Develop the alternatives </li></ul><ul><li>Evaluate the alternatives </li></ul><ul><li>Select the best alternative </li></ul>
  8. 8. Decision-Making <ul><li>Understanding the problem </li></ul><ul><li>Problem-solving and decision-making </li></ul><ul><li>Analyze the facts </li></ul><ul><li>Determining a course of action </li></ul>
  9. 9. Determining a Course of Action <ul><li>There are five basic types of action that can be taken in problem-solving and decision-making: </li></ul><ul><ul><li>corrective action </li></ul></ul><ul><ul><li>interim action </li></ul></ul><ul><ul><li>preventive action </li></ul></ul><ul><ul><li>contingency action </li></ul></ul><ul><ul><li>adaptive action </li></ul></ul>Which one is the best?
  10. 10. Decision-Making <ul><li>Who makes the decision? </li></ul><ul><ul><li>consider the different possibilities </li></ul></ul><ul><li>Other issues to consider are: </li></ul><ul><ul><li>quality issues </li></ul></ul><ul><ul><li>time and timing </li></ul></ul><ul><ul><li>commitment </li></ul></ul><ul><ul><li>control </li></ul></ul>
  11. 11. Group Decision-Making <ul><li>Interacting technique </li></ul><ul><li>Brainstorming </li></ul><ul><li>Nominal group technique </li></ul><ul><li>Delphi technique </li></ul><ul><li>Electronic meetings </li></ul>
  12. 12. Summary <ul><li>There are many ways to make decisions and solve problems. This chapter looks at several of the more common ways available to the leader. </li></ul><ul><li>The implicit favorite model will serve one well if he or she already knows what he or she wants to do. </li></ul><ul><li>The satisficing model works well if time is a consideration and one only needs to determine the criteria and then selects the first solution that meets the criteria. </li></ul><ul><li>The maximizing decision-making model provides a means to prioritize and understand the problem, analyze the facts, and then determine a course of action. </li></ul>

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