This document discusses key topics related to decision making, including typical approaches, effective decisions, individual vs. group decisions, and factors that can hinder group decision making. It provides an overview of decision making processes and outlines the 6 C's of effective decision making: construct, compile, collect, compare, consider, and commit. The document concludes that groups have advantages over individuals for decision making but must work to leverage these and use thoughtful processes involving problem definition, information gathering, considering alternatives, and deciding on a solution.

1. DECISION
MAKING

2. KEY TOPICS
 Introduction
 Typical Approaches to Decision Making
 Effective Decisions
 Individual vs. Group Decisions
 Groupthink
 Problem Definition
 Decision Making Example
 Factors Hindering Group Decision Making
 6 C’s of Decision Making
 Conclusion

3. What is Decision Making?
Decision making is the act of choosing one
alternatives from among a set of alternatives.
We have to first decide that a decision has to
be made and then secondly identify a set of
feasible alternatives before we select one.

4. Typical Approaches to
Decision Making
 Stay with the status quo
 Change as little as possible
 Delay and avoid making the decision
 Choose the first likely solution
 Encourage considered and thoughtful decision
making where all of the alternatives are given a fair
and thorough hearing

5. Effective Decisions
 Resources utilized effectively
 Time well used
 High quality decision (if possible to know)
 Implemented by all group members
 Problem solving ability of group enhanced (or not
lessened).

6. Individual vs. Group Decisions
 Advantages of group decision making
 Process gain
 More likely to identify and reject incorrect solutions
 More accurate memory of facts and events
 Greater informational resources
 Increased commitment for implementation
 Disadvantages of group decision making
 Time
 Groupthink
 Other Effects
 Group polarization

7. Groupthink
 Groupthink- syndrome of bad decision-making
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8. Decision-making Process
1. Identifying a problem
2. Identifying decision criteria
3. Allocating weights to criteria
4. Developing alternatives
5. Analyzing alternatives
6. Selecting an alternative
7. Implementing the alternative

9. Problem Definition
Problem is a discrepancy (difference) between an
existing and a desired state.
Identifying Decision Criteria
The word criteria, is defined as ” a standard by
which something can be judged “. A decision criteria
therefore, is the basis of a decision , which outlines
the relevant and important factors for a decision.
An implicitly, it also defines what is not important

10. Developing Alternatives
Involves defining the possible alternatives (or
choices) that would resolve the problem.
In our case the alternatives would be a list of
candidates or job applicants.
Analyzing Alternatives
Alternatives are rated and analyzed on the basis of the
criteria
The rating can be based on a specified scale, say 1-5
etc.
Rating may be subjective in nature and thus , may be
depend on the judgment of the individual(s)

11. Selecting an alternative
Involves choosing the best alternatives, based on the
above rating and analysis
Generally implies selecting the alternative with the
highest score.
Implementing the Alternative
Putting the decision into action
Involves clear communication of the decision to all
concerned and obtaining their commitment .

12. Decision Making Example
You are the head of a personnel department which
reports to the company president. The president has asked
you to make recommendations on how to change and update
the performance appraisal system. You are not sure about the
approach to take. Your specialty is selection and you desire
more information on performance appraisal. Fortunately,
three members of your staff are experienced with the various
aspects of performance appraisal. However, they rarely
agree with each other on the best way to achieve something
when it comes to performance appraisal. Fortunately, for this
project, these employees will not implement the
recommendations.

13. Factors Hindering Group
Decision Making
 Lack of group maturity
 Social loafing
 Free riding
 Defensive avoidance
 Groupthink
 Poor conflict management
 Egocentrism
 Lack of heterogeneity
 Premature closure
 Lack of individual incentives

14. 6 C’s of Decision Making
1. Construct.
2. Compile.
3. Collect.
4. Compare.
5. Consider.
6. Commit.

15. Construct a clear picture of precisely what must be
decided.
Compile a list of requirement that must be met.
Collect information on alternatives that meet the
requirements.
Compare alternatives that meet the requirements.
Consider the” what might go wrong “ factor with each
alternative.
Commit to a decision and follow through with it.

16. Conclusion
 Groups have advantages over individuals in making decisions
 Groups must work hard to leverage these advantages
 How decisions are made impacts
 Quality
 Acceptance/implementation
 Amount of time needed
 Thoughtful decision making requires groups using these steps
 Defining Problem
 Gathering Information
 Formulating and Considering Alternatives
 Deciding on a solution

17. THANKS