Organizational behavior 5e by kinichi Chap010KF making decisions

Making Decisions Chapter Ten McGraw-Hill/Irwin © 2012 The McGraw-Hill Companies, Inc All rights reserved Copyright © 2012 by The McGraw-Hill Companies, Inc All rights reserved After reading the material in this chapter, you should be able to: LO10.1 Compare and contrast the rational model of decision making, Simon’s normative model, and the garbage can model LO10.2 Review the eight decision-making biases LO10.3 Discuss the thrust of evidence-based decision making and its implementation principles LO10.4 Describe the model of decision-making styles, the role of intuition in decision-making and the stages of the creative process LO10.5 Summarize the pros and cons of involving groups in the decision-making process LO10.6 Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making 10-2 Models of Decision Making Decision making  identifying and choosing solutions that lead to a desired state of affairs 10-3 Models of Decision Making The Rational Model  proposes that managers use a logical four-step approach to decision making 10-4 Rational Model Identifying the Problem  Problem – exists when the actual situation and the desired situation differ  Opportunity - represents a situation in which there are possibilities to things that lead to results that exceed goals and expectations Generating Solutions  For routine decisions alternatives are readily available through decision rules 10-5 Rational Model Selecting a Solution  Is the potential solution ethical?  Is it feasible?  Will it remove the causes and solve the problem? 10-6 Rational Model Implementing and Evaluating the Solution  After solution is implemented, the evaluation phase is used to evaluate its effectiveness  Optimizing – producing the best possible solution 10-7 Question? Gloria is never happy with "good enough" solutions She is determined to find the best possible solution in solving her problems What Gloria is doing is described as A.Optimizing B.Brainstorming C.Rationalizing D.Satisfying 10-8 Summarizing the Rational Model The quality of decisions may be enhanced It makes the reasoning behind a decision transparent If made public, it discourages the decider from acting on suspect considerations 10-9 Nonrational Models of Decision Making Nonrational models  Attempt to explain how decisions are actually made 1.Decision making is uncertain 2.Decision makers not possess complete information 3.Difficult for managers to make optimal decisions 10-10 Question? Dominick has a low tolerance for ambiguity and is generally oriented towards task and technical concerns when making decisions Dominick can be described as having which decision-making style? A.Directive B.Analytical C.Conceptual D.Behavioral 10-26 Intuition in Decision Making Intuition  represents judgments, insights, or decisions that “come to mind on their own, without explicit awareness of the evoking cues and of course without explicit evaluation of the validity of these cues.” 10-27 A Model of Intuition Holistic hunch  judgment that is based on a subconscious integration of information stored in memory Automated experiences  choice based on a familiar situation and a partially subconscious application of previously learned information related to that situation 10-28 A Model of Intuition 10-29 Creativity Creativity  process of using intelligence, imagination, and skill to develop a new or novel product, object, process, or thought 10-30 The Creativity Stages 10-31 Road Map to Ethical Decision Making: A Decision Tree Decision tree  graphical representation of the process underlying decisions and it shows the resulting consequences of making various choices 10-32 An Ethical Decision Tree 10-33 Group Involvement Minority dissent  extent to which group members feel comfortable disagreeing with other group members, and a group’s level of participation in decision making 10-34 Advantages and Disadvantages of Group-Aided Decision Making 10-35 Group Problem Solving Techniques Consensus  reached when all members can say they either agree with the decision or have had their ‘day in court’ and were unable to convince the others of their viewpoint Everyone agrees to support the outcome Brainstorming  process to generate a quantity of ideas 10-36 Rules for Brainstorming Defer judgment Build on the ideas of others Encourage wild ideas Go for quantity over quality Be visual Stay focused on the topic One conversation at a time 10-37 Group Problem Solving Techniques Nominal Group Technique  process to generate ideas and evaluate solutions Delphi technique  process to autonomously generate ideas from physically dispersed experts 10-38 Group Problem Solving Techniques Computer-aided decision making  reduces consensus roadblocks while collecting more information in a shorter period of time  Chauffeur-driven systems, group-driven electronic meetings 10-39 Video: Leadership: Making Decisions During Hurricane Katrina What roadblocks to using a rational decision making model were placed before the Sister’s in this case? Could anything have been done to make their decisions easier? Identify how intuition and creativity helped the Sisters in the decisions they had to make Without the ability to communicate or have the resources they normally had at their disposal, what did the Sister’s rely on in making the decisions they needed to make? Why was timely decision making so essential in this case? 10-40 ... computer-aided decision making 10-2 Models of Decision Making Decision making  identifying and choosing solutions that lead to a desired state of affairs 10-3 Models of Decision Making The Rational... make optimal decisions 10-10 Simon’s Normative Model Bounded rationality  represents the notion that decision makers are “bounded” or restricted by a variety of constraints when making decisions. .. decision making (EBDM)  represents a process of conscientiously using the best available data and evidence when making managerial decisions 10-19 A Model of Evidence-Based Decision Making (EBDM)