Decision Making in Organizations Chapter 10 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-1 Learning Objectives Identify the steps in the analytical model of decision making and distinguish between the various types of decisions people make Describe different individual decision styles and the various organizational and cultural factors that influence the decision-making process Distinguish among three approaches to how decisions are made: the rational-economic model, the administrative model, and image theory Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-2 Learning Objectives Identify the various factors that lead people to make imperfect decisions Compare the conditions under which groups make superior decisions than individuals and when individuals make superior decisions than groups Describe various traditional techniques and high-tech techniques that can be used to enhance the quality of individual and group decisions Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-3 Decision Making The process of making choices from among several alternatives Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-4 Decision-making Process Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-5 Programmed vs Nonprogrammed Decisions Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-6 Risk Probabilities Objective Subjective Reducing uncertainty • Establish linkages with other organizations • Information Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-7 Top-Down vs Empowered Decisions Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-8 Individual Decision Styles Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-9 Group Influences Potential benefits • Pooling of resources • Specialization of labor • Greater acceptance Potential problems • Wasted time • Disruptive conflict • Intimidation by group leaders Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-10 Image Theory Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-15 Individual Decision Imperfections Framing Effects Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-16 Individual Decision Imperfections Heuristic Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-17 Individual Decision Biases Implicit favorite Hindsight Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-18 Individual Decision Biases Person Sensitivity Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-19 Individual Decision Biases Escalation of Commitment Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-20 Group vs Individual Decision Making Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-21 Group Creative Problem Solving Brainstorming Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-22 Training Individuals to Improve Group Performance Hypervigilance Unconflicted adherence Unconflicted change Defensive avoidance Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-23 Techniques for Enhancing Group Decisions Delphi Technique Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-24 Techniques for Enhancing Group Decisions Nominal Group Technique Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-25 Techniques for Enhancing Group Decisions Stepladder Technique Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-26 Effective Decisions Computer-based Approaches Electronic meeting systems Group decision support Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-27 Effective Decisions Computer-based Approaches Computer-assisted Communications Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-28 This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely All rights reserved No part of this publication may be reproduced, stored in a on these materials retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher Printed in the United States of America Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-29 ... Pearson Education, Inc Publishing as Prentice Hall 10-21 Group Creative Problem Solving Brainstorming Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-22 Training Individuals to... Education, Inc Publishing as Prentice Hall 10-8 Individual Decision Styles Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-9 Group Influences Potential benefits • Pooling of... Disruptive conflict • Intimidation by group leaders Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 10-10 Groupthink Copyright © 2011 Pearson Education, Inc Publishing as Prentice