It's a ppt on decision making

1. Organizational Behavior
Module : Decision Making

2. Module Learning Outcomes
Explain the process and techniques of individual and group decision-making
12.1: Describe the types of decisions made in different types of organizations
12.2: Describe the role of statistics, data analytics, data science and managerialism in
contemporary decision-making

3. Making Decisions in Different Organizations

4. Learning Outcomes: Making Decisions in Different
Organizations
12.1: Describe the types of decisions made in different types of
organizations
12.1.1: Describe the decision making process
12.1.2: Compare various biases and errors in decision making
12.1.3: Discuss ways to promote creativity in decision making
12.1.4: Discuss group decision making and how organizations make decisions

5. Class Activity: Lost at Sea
• Divide students into groups of five to seven individuals
• Here’s the scenario:
You are lost at sea, stranded on an island in the middle of the remote Atlantic with 15 items at
your disposal. Look at the inventory and rank the items in order of importance for your survival
and eventual rescue.
First, take five minutes to rank the items on your own in the first column of the worksheet
Second, discuss with the other members of your group, and rank the importance of the items,
once you’ve all agreed, in the second column

6. These are the items you’ve been stranded with…
• a mosquito net
• a can of fuel
• a water container
• a shaving mirror
• a sextant
• emergency rations
• a sea chart
• a floating seat cushion
• a rope
• some chocolate bars
• a waterproof sheet
• a fishing rod
• shark repellent
• a bottle of rum
• a VHF radio

7. How the Coast Guard ranks these items:
1. Shaving mirror
2. Can of fuel
3. Water container
4. Emergency rations
5. Plastic sheet
6. Chocolate bars
7. Fishing rod
8. Rope
9. Floating seat cushion
10. Shark repellent
11. Bottle of rum
12. Radio
13. Sea chart
14. Mosquito net
15. Sextant

8. Rational Decision Making Process
This process assumes
• Managers have all the information
about the situation.
• Managers are aware of all
alternative options and are equipped
to evaluate them properly.
• Managers are looking to make the
best possible decision.
• Managers are capable of eliminating
misperceptions and biases.
• There are no cost or time
constraints.

9. Bounded Rational Decision Making
• Early alternatives and solutions are
quickly adopted because of
perceptual limitations.
• Managers often don’t have access to
all the information they need.
• Managers are not aware of all the
alternatives and can’t predict the
consequences of each one.
• Organizational goals constrain
decisions.
• Conflicting goals of multiple
stakeholders can force a compromise
of a decision.

10. Other Decision Making Models
Linear Model Intuitive Model Garbage Can Model

11. Biases and Errors in Decision Making
• Overconfidence bias
• Anchoring bias
• Confirmation bias
• Hindsight bias
• Representative bias
• Availability bias
• Commitment errors
• Randomness errors

12. Creative Decision Making

13. Brainstorming and Cooperative Exploration

14. Group Decision Making
Processes
• Nominal decision making process
• Delphi decision making

15. Practice Question 1
What is the distinctive feature of the rational model of decision making?
A. Listing pros and cons and adding numerical value or “weight” to each.
B. The decision maker identifies the problem and reviews every acceptable alternative
C. Past experience and gut feelings are used to make the decision because no other
options are available
D. Problems, solutions, participants and choice opportunities inform decisions

16. Practice Question 2
The defining characteristic of a _____________ bias is characterized by an individual
looking for information to support his claim rather than making a full investigation.
A. Confirmation
B. Hindsight
C. Representative
D. Overconfidence

17. Practice Question 3
Which of the following is a characteristic of an organization that approaches decision
making creatively?
A. A traditional culture
B. Traditional, buttoned-up leaders
C. An atmosphere of expertise
D. A willingness to take risks

18. Practice Question 4
What decision making technique reduces the interaction between group members and
features rank voting to complete the process?
A. Nominal group technique
B. Delphi group technique
C. Cooperative exploration group technique
D. Linear group technique

19. Data and Managerialism in Decision Making

20. Learning Outcomes: Data and Managerialism in
Decision Making
12.2: Describe the role of statistics, data analytics, data science and
managerialism in contemporary decision-making
12.2.1: Identify the steps to effectively use data in decision making
12.2.2: Discuss big data and its implications on decision making
12.2.3: Discuss the consequences of managerialism in decision making
12.2.4: Discuss decision making tools

21. Class Activity: Using Data in Decisions
Students should form groups of five to seven people. This is the scenario:
You are surgeons at a large hospital. Your committee must make a very important
decision. Seven patients need a heart transplant. There is only one heart donor at
this time. All seven patients are eligible to receive this heart, all are physically able
and compatible with the donor.
Which patient would you choose to receive the heart? Why? Your committee must
agree on the choice.

22. The Patients
• 31 year old male; African American, brain surgeon at the height of his career; no
children
• 12 year old female; Vietnamese; accomplished violinist; blind
• 40 year old male; Hispanic, teacher, 2 children
• 15 year old female; White, unmarried, 6 months pregnant
• 35 year old male; Hispanic; Roman Catholic priest
• 17 year old female; White; waitress; high school dropout; supports/cares for a
brother who is severely disabled
• 38 year old female; White; AIDS researcher; no children; lesbian

23. Using Data in Decisions
• Decide on your strategy
• Identify key areas and target data
• Collect the data
• Analyze the data
• Make a decision about the data
• Present your findings

24. Big Data and Decision Making

25. Managerialism and Decision Making
Management + Ideology + Expansion = Managerialism
What you need to know:
• Most people feel that managerialism is pejorative.
• Managerialism deprives individuals with expertise of all decision
making powers.

26. Decision Making Tools: Pareto Diagram
• Good for: Identifying
beneficial opportunities
and issues

27. Decision Making Tools: Cause and Effect Diagram
• Also called the Ishikawa Diagram
• Good for: honing in on the exact
cause of an issue

28. Decision Making Tools: Feasibility Reporting
• Lets you know the rate of
return on an investment

29. Decision Making Tools: SWOT Analysis
• Stands for “strengths,
weaknesses, opportunities and
threats”
• Good for: strategic planning and
decision making

30. Other Decision Making Tools
• Decision making diagrams
• Decision making software
• Vroom-Jetton-Yago diagram

31. Practice Question 5
When an employee removes outlying data from a set to make it ready for decision-
making use, he is completing which step in using data for decision making?
A. Analyzing the data
B. Collecting the data
C. Deciding on a strategy
D. Making a decision about the data

32. Practice Question 6
To what does the term “veracity” refer?
A. How much data there is
B. The speed at which data is generated
C. How accurate the data is
D. The type of data – structured or unstructured

33. Practice Question 7
Why is the concept of managerialism important to the topic of decision making?
A. It deprives individuals with expertise of all decision-making powers
B. It’s pejorative
C. It focuses on citizens and their needs rather than business
D. It’s not a very well studied concept

34. Practice Question 8
If you’re looking to identify your organization’s strengths and weaknesses and compare
it to competitors, which is the tool you might need?
• Feasibility report
• Vroom-Yetton-Jago Decision Making Model*
• Pareto diagram
• SWOT analysis

35. Quick Review
• Several different models exist to help individuals and groups make decisions
• Be careful of decision making biases and errors – they can get you into trouble
• Companies that support creative decision making are often more successful
• Incorporate data into decision making when you can
• Big data can make a huge impact on decisions – tune into the four Vs!
• Managerialism takes decision making away from experts
• Charts, diagrams, reports and software are all tools that can aid an individual in
refining data to make a decision – don’t forget those tools are at your disposal!

36. Appendix

37. Lost at Sea Worksheet (for printing)
Mosquito
Net
Can
of
Fuel
Water
Container
Shaving
Mirror
Sextant Emerg.
Rations
Sea
Chart
Floating
Seat
Cushion
Rope Choc.
Bars
Water-
proof
Sheet
Fishing
Rod
Shark
Repel-
lant
Bottle
of Rum
VHF
Radio
Row 1
Your Individual
Ranking
Row 2
Your Group
Ranking
Row 3
The Coast Guard’s
Ranking
Subtract the
difference between
Row 3 and Row 1
Subtract the
difference between
Row 3 and Row 2