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    Chapter 3 - Decision Making

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    Nur Liza Hazlin
    This document discusses managerial decision making. It begins by listing the learning objectives, which are to discuss types of decision making and conditions, the decision making process, and group decision making techniques. It then defines decision making as identifying and resolving problems and capitalizing on opportunities. The nature of decision making is discussed, noting that some decisions have major impacts while others are more routine. The 7 steps in the decision making process are listed but not described. Types of decision making and conditions like certainty, risk, uncertainty and ambiguity are outlined. The document concludes by describing group decision making techniques like brainstorming, nominal group technique, Delphi technique, and dialectical inquiry.

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    Chapter 3 - Decision Making

    Uploaded by

    Nur Liza Hazlin
    85 views18 pages
    This document discusses managerial decision making. It begins by listing the learning objectives, which are to discuss types of decision making and conditions, the decision making process, and group decision making techniques. It then defines decision making as identifying and resolving problems and capitalizing on opportunities. The nature of decision making is discussed, noting that some decisions have major impacts while others are more routine. The 7 steps in the decision making process are listed but not described. Types of decision making and conditions like certainty, risk, uncertainty and ambiguity are outlined. The document concludes by describing group decision making techniques like brainstorming, nominal group technique, Delphi technique, and dialectical inquiry.

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    Chapter 3- Decision Making

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    This document discusses managerial decision making. It begins by listing the learning objectives, which are to discuss types of decision making and conditions, the decision making process, and group decision making techniques. It then defines decision making as identifying and resolving problems and capitalizing on opportunities. The nature of decision making is discussed, noting that some decisions have major impacts while others are more routine. The 7 steps in the decision making process are listed but not described. Types of decision making and conditions like certainty, risk, uncertainty and ambiguity are outlined. The document concludes by describing group decision making techniques like brainstorming, nominal group technique, Delphi technique, and dialectical inquiry.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    85 views18 pages

    Chapter 3 - Decision Making

    Uploaded by

    Nur Liza Hazlin
    This document discusses managerial decision making. It begins by listing the learning objectives, which are to discuss types of decision making and conditions, the decision making process, and group decision making techniques. It then defines decision making as identifying and resolving problems and capitalizing on opportunities. The nature of decision making is discussed, noting that some decisions have major impacts while others are more routine. The 7 steps in the decision making process are listed but not described. Types of decision making and conditions like certainty, risk, uncertainty and ambiguity are outlined. The document concludes by describing group decision making techniques like brainstorming, nominal group technique, Delphi technique, and dialectical inquiry.

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    CHAPTER 3:

    THE NATURE OF
    MANAGERIAL DECISIONMAKING

    Learning Objectives
    After completing this chapter, students
    should be able to:
    Discuss the types of the decisionmaking and condition applied
    Discuss the decision-making process
    Describe the group decision-making
    techniques

    Definition of Decision
    Making
    The process through which managers
    identify and resolve problems and
    capitalize on opportunities.
    The process by which a course of
    action is selected as the way to deal
    with a specific problem.

    Nature of Decision Making


    Some decisions are critical and
    can have a major impact on
    personal and organizational lives.
    Other decisions are more routine
    but still require that we select an
    appropriate course of action.

    7 Steps in the Decision-Making


    Process

    Types of Decision Making

    Decision-Making Conditions
    1.

    2.

    Certainty

    Managers have accurate, measurable and reliable information about


    the outcome of various alternatives under consideration

    Decision-maker knows exactly what is happening:

    The nature of the problem

    Possible alternatives

    Result of alternatives
    Risk

    Future conditions that are not always known

    Information is available but is not enough

    Conditions under risk:

    The nature of the problem

    Possible alternatives

    Probability of each alternative leading to desired outcomes

    Decision-Making Conditions
    3.

    Uncertainty
    Face unpredictable external conditions (PESTEL)
    Lack of information
    Little is known about the alternatives or their outcomes

    4.

    Ambiguity
    Goal or problem to be resolved is unclear
    Alternatives are difficult to define
    Information about outcomes is not available

    Politics
    Economy
    Social
    Technology
    Environment
    Legal

    What is Group ?
    Two or more persons
    interacting for some
    purpose and who
    influence one another in
    the process.

    Group Decision Making


    Group decision making is
    becoming more common as
    organizations focus on
    improving customer service
    and push decision making to
    lower levels.

    Pros & Cons in


    Group Decision-Making
    Advantages
    Experience and expertise
    of several individuals
    available
    More information, data,
    and facts accumulated
    Problems viewed from
    several perspectives
    Higher member
    satisfaction
    Greater acceptance and
    commitment to decisions

    Disadvantages
    Greater time requirements
    Minority domination
    Leader may talk too much
    leaving group members
    non-participative
    Compromise
    Concern for individual rather
    that group goals
    Individuals sidetracked to
    win argument in order to
    achieve personal goals
    Social pressure to conform
    Groupthink ***

    Groupthink ***
    An agreement-at-any-cost mentality that results in
    ineffective group decision making.
    Conformity in thought and behavior among the members
    of a group, especially an unthinking acceptance of
    majority opinions
    Occurs when groups are :
    highly cohesive
    have highly directive leaders
    insulated so they have no clear ways to get objective
    information
    because they lack outside information > have little
    hope that a better solution might be found than the one
    proposed by the leader or other influential group
    members

    Techniques of Group Decision-Making

    Brainstorming
    A technique used to enhance
    creativity that encourages group
    members to generate as many
    more novel ideas as possible on a
    given topic without evaluating
    them
    Rules of Brainstorming:
    Freewheeling is encouraged
    Group members will not
    criticize ideas as they are
    being generated
    Quality is encouraged
    The wilder the ideas the better
    Piggyback on previously stated
    ideas
    No ideas are evaluated until
    after all alternatives are
    generated

    Nominal Group Technique (NGT)


    A structured process designed to
    stimulate creative group decisionmaking where agreement is lacking or
    the members have incomplete
    knowledge concerning the nature of
    the problem
    Delphi Technique
    Uses experts to make predictions and
    forecasts about future events without
    meeting face-to-face
    Devils Advocacy Approach
    An individual or subgroup appointed
    to critique a proposed course of action
    and identify problems to consider
    before the decision is final
    Dialectical Inquiry
    Approaches a decision from two
    opposite points and structures a
    debate between conflicting views

    Ethical and social implications


    15

    Able to recognize problems quickly


    Able to differentiate between strategic
    and operational decisions
    Equipped with all techniques that aid
    in making decisions
    Be familiar with the framework
    Create awareness and understanding

    Barriers to effective planning

    Demands time
    Uncertain operating environments
    Resistance to change
    Lack of commitment
    Failure to see the scope of plan
    Unclear goals
    Lack of information

    Overcoming the barriers

    Learn to apply the managerial functions better


    Involves employees in decision making
    Take advantage of different views
    Encourage strategic thinking
    Clear planning
    Ensure effective communication
    Forecast future

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