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
Decision Making Styles
• are differences among people with respect to how they perceive
problems and make decisions
• Action-oriented, focus on facts
• Efficient and logical
• Making fast decision
• Careful, like lots of information and alternative choices
• Consider more information
• Take longer to make decisions
• Able to cope changing situations
• 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
• Most people-oriented
• Work well with others
• Receptive to suggestions
• Prefer verbal to written information
• Avoid conflict, concern others
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.
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.
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.
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.
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?
Step 4: Implement & Evaluate the Solution
• Successful Implementation:
1. Plan Carefully.
2. Be Sensitive to those affected.
• Evaluation – follow up and evaluate the result
4 Possibilities if the solution is not working?
• Give it more time
•Change it slightly
•Try another alternative
Reason that Hindrances of Perfectly Rational
Time & Money
5 Advantages of Group Decision Making
Greater pool of knowledge
Better understanding of decision rationale
Deeper commitment towards the decision
4 Disadvantages of Group Decision
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
•Probability of a bad decision increase
Group size affects the decision quality
•Larger group, lower quality of the decision
They may be too confident
•More confident about their judgement and
choices liability because it can lead to
•Group members know a good deal about the
relevant issue The group leader has the ability
to weight member’s opinion
4 Types of Group Problem Solving Techniques