This document discusses various topics related to decision making, including different types of decisions, individual and group decision making processes, and factors that influence decision making. It covers programmed versus non-programmed decisions, top-down versus empowered decisions, rational versus intuitive decision making models, and group decision techniques like brainstorming, nominal group technique, and Delphi method. It also outlines factors like decision making styles, individual differences, groupthink, biases, and traps that can influence the decision making process.

1. Decision making

2. Types
• Programmed
• Non-programmed
• Top-down
• Empowered

4. Processes - Individual
Identify problem
Establish decision
criteria
Weigh decision
criteria
Generate
alternatives
Evaluate
alternatives
Make a choice
Implement choice
Evaluate

5. Processes - Individual
• Rational economic model
• Bounded rationality
• Satisficing
• Intuitive decision-making
• Creative decision-making

6. Processes – Group/Org
• Brainstorming
• Nominal group
• Stepladder
• Delphi

7. Factors affecting DM - individual
• Styles
• DIRECTIVE,
• ANALYTICAL,
• CONCEPTUAL,
• BEHAVIOURAL

8. Factors affecting DM - individual
• Individual differences
• Styles
• Risk taking
• Values
• Intuition
• Creativity

9. Factors affecting DM – Group/Org
• Groupthink
• Asch’s experiment
• Group polarization
• Political pressures
• Time pressures
• Cultural context

11. • Video time!

12. Factors affecting DM
• Traps, biases
• Overconfidence
• Framing
• Anchoring
• Status-quo
• Sunk cost
• escalation of commitment

13. Points to note
• Awareness of traps in our thinking
• Keep questioning assumptions
• Seek various perspectives/frames
• Understand decision styles of self, others
• Encourage dissent
• Cultivate culture of openness, failure acceptance
• Awareness of yes-(wo)men, groupthink
• Use nominal techniques to allow private votes

14. QUIZ – 3 [take home]
Individually work and
• Map which traps and biases from the reading would
significantly affect which stages of the decision making
process. Substantiate with examples [10 marks]
• Submit a print copy in tomorrow’s class

16. Mental accounting
• Imagine that you have decided to see a movie and
have paid the admission price of $10 per ticket. As
you enter the theater, you discover that you have
lost the ticket. The seat was not marked, and the
ticket cannot be recovered. Would you pay $10 for
another ticket?
• 46% ready to buy

17. • Imagine that you have decided to see a movie
where admissionis $10, but you have not yet
bought the ticket. As you walk to the theater, you
discover that you have lost a $10 bill. Would you
still pay $10 for a ticket to the movie?
• 88% ready to buy