Organization Decision Making Team 10 This document discusses decision making. It begins by defining decision making as "the process of deciding about something important, especially in a group of people or in an organization in order to arrive at a solution for a given problem." It then outlines the typical decision making process and discusses the importance of decision making, including that it helps implement managerial functions, evaluate performance, operate businesses successfully, and plan policies. The document also covers types of decisions, models of decision making, and tools and techniques to improve decision making, as well as common biases that can negatively impact decisions.

1. Organization
Decision Making
Team 10

2. Index
1. What is decision making?
2. Decision making process
3. Importance of decision making
4. Types of decision making
5. Modelsofdecisionmaking
6. Toolsandtechniquestoimprovedecisionmaking
7. Biases and errors in decision making

3. What is decision making?
“The process of deciding about something
important, especially in a group of people or in
an organization in order to arrive at a solution
for a given problem”

4. Analyze
situation
Decision Making Process
Identify a
problem or
opportunity
Gather
information
Develop optionsEvaluate
alternatives
Select a preferred
alternative
Act on the decision
Evaluate decision
effectiveness

5. Importance of decision making
Tencent
• Largest service portal site in China
• Founded in November, 1998
1. Implementation of managerial function
2. Pervasiveness of decision making
3. Evaluation of managerial performance
4. Successful operation of business
5. Helpful in planning and policies
6. Selecting the best alternative

6. Importance of decision making
Implementation of managerial function
QQ Mail
• Providing many functions, but slow and spam-flooding
Deleting
unnecessary
functions
Optimization
for higher
speed
And so on

7. Importance of decision making
Pervasiveness of decision making
Q Zone
• Blog service developed in 2005
• Development process was a series of decision making
2006
▷ Starting browser mode ▷Introduction of popular animation
▷ Q Zone WAP test release
2007 ▷ Introduction of information center and circle of friends
2008
▷Private log, friends log release
▷Album revision release
2009
▷QQ Farm application official release
▷Q zone and QQ information integration

8. Importance of decision making
Evaluation of managerial performance
QQ Music
• Introduced ‘Green Diamond Membership’
• Provides unlimited music downloading service and other
peripheral services.
• Able to hold customers with in QQ services.
• Decision making evaluates the managerial performance.

9. Importance of decision making
Successful operation of business
WeChat
• A mobile instant messaging application released in 2011
• Improvements : Voice Intercom, ‘view of the people nearby’
function, etc.
• No. 1 app in Asia in 2013

10. Importance of decision making
Helpful in planning and policies
• No plans and policies can be developed and implemented
without decision making
• Appropriate decision must be made from so many alternatives
Should I go this
way? Or that
way?

11. Importance of decision making
Selecting the best alternative
• Decision making = Selecting the best alternative
• Selecting best one of the alternatives by evaluating advantages
and disadvantages of every alternatives.

12. Types of decision making
• Programmed decision
• Routine and repetitive
• Develops specific ways to handle them
• Ex) What should I eat for lunch?
What should we do with this client’s
complain?

13. Types of decision making
• Non-programmed decision
• Novel and poorly defined
• No procedure exists for solving the problem

14. Decision making models
1. Rational Comprehensive Model
2. Incremental Theory
3. Mixed scanning

15. Decision making models
Rational Comprehensive Model
?!
Objectives are clear
and ranked in accord
with their importance
Costs and benefits;
advantages and
disadvantages are
evaluated
Alternative that
maximizes the
attainment of goals,
values and objectives
is chosen

16. Decision making models
Incremental Model
Decisions are constructed by the mixture of
intuition, experience, rule of thumb.

17. Decision making models
Mixed scanning
Combination of rational comprehensive model and
incremental theory.

18. Techniques to improve decision making
Majority Rule Technique
• Simple, fast, easy and fair in terms of representation
• May lead to inappropriate decision

19. Tools and techniques to improve decision making
Nominal Group Technique
• Anonymous suggestions are graded by individuals and
the suggestion with highest point is chosen and
delivered.
10 7 8 6
A

20. A 가☆ 1
Tools and techniques to improve decision making
Brainstorming Technique
• Encourages participation of every member to decision-
making process to foster creativity
&♬國 +

21. • Group provides written responses to a
questionnaire
• Decision is made with the
result
Tools and techniques to improve decision making
Delphi Technique

22. Biases and errors in decision making
Confirmation Bias
DATA
No!
• Looking for information that supports existing beliefs
and rejecting data that goes against the belief.
• Serious problem in making statistic-based
decision
DATA

23. Biases and errors in decision making
Anchoring
• Making decision on information gained early in the
decision making process.
It’s not that
big!

24. Biases and errors in decision making
Overconfidence Bias
• Too much faith in your own knowledge and opinions.
• Combined with anchoring bias
I can make it!

25. Biases and errors in decision making
Gambler’s Fallacy
• Expecting past events to influence the future
• Odds are always the same
It’s my turn to
win!

26. Biases and errors in decision making
Fundamental Attribution Error
• The tendency to blame others when things go wrong,
instead of looking objectively at the situation.
I hate this car’s
brake!

27. Thank you
for listening!