Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Management - Chapter 7 : Individual & Group Decision Making


Published on

Learning outcome
1. Differences between programmed and non-programmed decisions
2. 4 important decisions making styles
3. 4 rational decision making styles
4. advantages and disadvantages of group decision making

Published in: Education
  • Be the first to comment

Management - Chapter 7 : Individual & Group Decision Making

  2. 2. Meaning of Decision Making : Decision •is a choice made between two or more available alternatives. Decision making •is the process of choose the best alternative for reaching objectives.
  3. 3. Types of Decisions Programmed Decisions : • Routine and repetitive • Eg : habit, clerical routine work Non-programmed Decisions : • Non-routine, unfamiliar circumstances, unique • Eg : judgement, creativity
  4. 4. Decision Making Styles • are differences among people with respect to how they perceive problems and make decisions
  5. 5. Directive Style • Action-oriented, focus on facts • Efficient and logical • Making fast decision
  6. 6. Analytical Style • Careful, like lots of information and alternative choices • Consider more information • Take longer to make decisions • Able to cope changing situations
  7. 7. Conceptual Style • Rely on intuition and have a long-term perspective • tend to focus on people or social • Very broad out look • Focus on long run • Good at finding creative solutions
  8. 8. Behavioral Style • Most people-oriented • Work well with others • Receptive to suggestions • Prefer verbal to written information • Avoid conflict, concern others
  9. 9. Knowing Your Decision Making Style • Make adjustments to the situation and results. • Helps understand yourself. • Able to influence others by being aware of styles. • Prove yourself to be a valuable asset as a leader.
  10. 10. Rational Decision Making • Multi-step process for making choices between alternatives. • Explains how managers should make decisions. • Assumes managers will make logical decisions that will be optimum in furthering the organization’s best interests. • Four steps associated.
  11. 11. Step 1: Identify the Problem and Opportunity • Problems or difficulties that inhibit the achievement of goals. • Opportunities: situation that present possibilities for exceeding existing goals. • Diagnosis : analysing the underlying causes.
  12. 12. Step 2: Think Up Alternative Solutions • After identified problem and opportunity, need to come up with alternative solutions. • For a programmed decision- easy and obvious. • For a non-programmed decision- more creative, more better.
  13. 13. Step 3: Evaluate Alternatives & Select a Solution • Not only according to cost and quality, but according to the following question : 1. Is it ethical? 2. Is it feasible? 3. Is it ultimately effective?
  14. 14. Step 4: Implement & Evaluate the Solution Chosen • Successful Implementation: 1. Plan Carefully. 2. Be Sensitive to those affected. • Evaluation – follow up and evaluate the result
  15. 15. 4 Possibilities if the solution is not working? i • Give it more time ii •Change it slightly iii •Try another alternative iv •Start over
  16. 16. Reason that Hindrances of Perfectly Rational Decision Making Complexity Limitation of Time & Money Imperfect Information Abundantly of Information Different priorities Conflicting goals
  17. 17. 5 Advantages of Group Decision Making Greater pool of knowledge Different Perspectives Intellectual Stimulation Better understanding of decision rationale Deeper commitment towards the decision
  18. 18. 4 Disadvantages of Group Decision Dominate & Intimidate Groupthink Satisficing Goal Displacement
  19. 19. Group decision making are less efficient •Need a lot of time to make decision •Time pressures or serious effect of a decision •Use less information and fewer communication channels •Probability of a bad decision increase Group size affects the decision quality •Larger group, lower quality of the decision
  20. 20. They may be too confident •More confident about their judgement and choices liability because it can lead to groupthink Knowledge counts •Group members know a good deal about the relevant issue The group leader has the ability to weight member’s opinion
  21. 21. 4 Types of Group Problem Solving Techniques Brainstorming Nominal Group Technique Delphi Technique Computer- aided decision making
  22. 22. BIAS Decision Overconfident Ignoring the situation Basing decision on prior decision belief Not enough information
  23. 23. THE END