The document discusses decision making for leaders. It defines decision making as consciously choosing between possible actions to achieve objectives. As a leader, applying the right decision making techniques is important to support organizational goals. The document outlines different types of decisions, approaches to decision making, group decision making structures, common decision making mistakes, and a six-step decision making process of defining the issue, listing options, gathering information, considering options, making a decision, and being open to change.
2. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Purpose
As a Leader, to be able to
make high quality decisions
on a daily basis by applying
the right decision making
techniques and process to
support the goals of the
organization
3. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
What is Decision Making?
Decision Making is a choice
or judgement of what you
need to do in order to
achieve an objective
Decision Making is
consciously choosing one
action from several possible
actions
4. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Why Decision Making?
But when situations are more complicated
and have longer term impacts, decisions get
more difficult to make. People may feel:
➢ overwhelmed
➢ stressed or anxious
➢ wound up
➢ pressured
➢ confused
➢ tired
We make hundreds of decisions every day, most of
which are straightforward and happen without us
thinking too much about them
5. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Why even bother to make decisions?
The answer is that the
different alternatives and
choices you make will lead to
different consequences
Your decisions will impact your
organization’s objectives
Thus, you need to take care in
making those decisions
6. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Types of Decision Making
Programmed Decisions
Routine, almost
automatic process
Have made decision
many times before
There are rules or
guidelines to follow
Example: Deciding to
reorder office supplies
Non-Programmed Decisions
Unusual situations that
have not been addressed
No rules to follow since
the decision is new
Decisions are made
based on information,
intuition, and judgment
Example: Invest in a new
technology?
7. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
2 Approaches to Decision Making
Analytical Decision
The problem solver or
team of problem
solvers, employ a
systematic process
to analyse a problem
and determine the
best solution
Intuitive Decision
A decision-making
process that relies on
intuition, judgement
and experience to
recognize key
elements of a
particular problem to
arrive at an
appropriate decision
8. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Group Decision Making Structures
Group
Decision
Making
Structures
Majority
Rule
Hierarchy
Consensus
Unanimity
No
Structure
2
5
1
3
4
9. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Voting
Splits the group into
“winners” and “losers”
Fosters competition and
factions
Losers often angry and no
commitment to the decision
Encourages attacks
against opponents
Usually fast
Majority Rule
Majority Rule
10. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Chain of command
Clear responsibility and
accountability
Bossism
Not representative
Many views not heard
Underlings don’t
understand or accept
decision
Little commitment
Fast - good for crisis
Hierarchy
Hierarchy
11. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Explore solutions until best
one emerges
Mutual search for solution
Decision all can accept
Brings conflict into open
Minority opinions considered
Encourage cooperation
1 person can block decision
Promotes commitment
Takes time, may be frustrating
Consensus
Consensus
12. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
Everyone completely
agrees
Good when it occurs
Full commitment
Almost impossible to
achieve with more than
two people
If achieved, usually
takes a very long time,
if achieved
Unanimity
Unanimity
13. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
No rules
No regulations
No system
No penalties
Often chaotic
“We trust each other”
Dominated by
aggressive few
Dissatisfaction grows
No Structure
No Structure
14. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
10 Decision Making Mistakes
Decision
Making
Mistakes
10
7
2
5
1
6
9
8
3
4
Procrastinate
Believe it's
"Make or
Break"
Not
Systematic
Do not
Consider
Different
Perspectives
Do not involve
Stakeholders
Psychological
Bias
Being
Overconfident
Do not
consider
Consequences
Do not
Communicate
Effectively
Do not correct
a wrong
decision
15. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
1
2
3
4
5
6
Define
issue
List
options
Gather
info
Consider
options
Make
decision
Open to
change
6 STEPS TO MAKE GREAT DECISIONS
16. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Use 5W1H:
What is the problem/issue?
Where is the problem/issue?
Why is the decision necessary?
How the decision change things
for the better?
Who will it affect?
When must decision be made?
Define the Problem/Issue
1
17. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
List your Options
2
List all possible options
The more options you
consider, the more
likely you will be to not
overlook the best
solution
18. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Gather Information about your Options
3
You will make better
decisions if you have
investigated
thoroughly
You will also have
more peace of mind
as you carry out your
decision
19. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Consider your Options
4
Write down the pros and cons for
each option and see how they
stack up against each other
Try to determine both best-case
and worst-case scenarios for
each option
See if there is some way to
combine several promising
solutions into one potent solution
20. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Make a Decision
5
When you are
convinced that
you have found
the best solution,
commit to it
21. Designed & Developed by : Wong Yew Yip ~ 20 August 2021
6-Step Decision Making Process
Be open to change
6
Be open to change if
circumstances
change
Once you make a
decision and begin to
act on it, a better
option may open up