2. Managerial Decision Making
Categories of decision (Programmed/Non-Programmed)
Decision Characteristics (Certainty/Risk/Uncertainty/Ambiguity)
Decision-making Models (Rational-Economic/Behavioral)
Decision-Making Process (7 steps should take)
Decision Style (Directive/Analytical/Conceptual/Behavioral)
Participative Decision Making (Vroom-Jago Model) & Styles
3. Decision-Making Styles
• Differences among people with respect to how they
perceive problems and make decisions.
• Not all managers make decisions the same way.
• Four different decision-making styles:-
1. Directive style
2. Analytical style
3. Conceptual style
4. Behavioral Style
4. (1) Directive Style
• People who prefer simple, clear-cut solutions
to problems.
• Make decisions quickly.
• May consider only one or two alternatives.
• Efficient and rational.
• Prefer rules or procedures.
5. (2) Analytical Style
• Complex solutions based on as much data as
they can gather.
• Carefully consider alternatives.
• Base decision on objective, rational data from
management control systems and other
sources.
• Search for best possible decision based on
information available.
6. (3) Conceptual Style
• Consider a broad amount of information.
• More socially oriented than analytical style.
• Like to talk to others about the problem and
possible solutions.
• Consider many broad alternatives.
• Rely on information from people and systems.
• Solve problems creatively.
7. (4) Behavioral Style
• Have a deep concern for others as individuals.
• Like to talk to people one-on-one.
• Understand their feeling about the problem
and the effect of a given decision upon them.
• Concerned with the personal development of
others.
• May make decisions to help others achieve
their goals.
8. Questions
1. Describe the participative decision-making
approach.
2. Describe the advantages of participative
decision making when compared to
individual decision making.
9. Answers
1. Managers / Employers often work with their
employees in sharing their ideas and
information. Employees from the required /
different levels are allowed to participate in
decision making to increase decision quality.
This is important of having subordinates
commit to the decisions made.
10. Answers
2. Advantages
• Experience and expertise of several individuals
available
• More information, data and facts accumulated
• Problems viewed from several perspectives
• Higher member satisfaction
• Greater acceptance and commitment to
decisions
