decision making & sm

8/8/2019 Decision Making & SM

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2005 Prentice Hall Inc. All rights reserved. 51

DECISION MAKING AND STRESS MGMT

Anubha


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Phases of DM

Identification Phase identify problem

Recognize and Diagnose

Development phase Solution Search and design

Selection phase Choice of solution

Judgment, Analysis & authorisation


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Mechanistic Decision the decision maker issure of alternative and outcome of each

alternative

Analytical Decision decision taken where a

large alternatives can be generated since a lot of

information is available and outcome of each

alternative can be calculated.

Judgment decision A limited no. of alternatives

are available to solve the problem and outcome

of decision are also unknown

Adaptive Decision - a large no of alternatives are

available and their outcome is not known


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Techniques used in steps of DM

Brainstorming Synectics

Delphi Technique


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IdentifyProblem

The Decision-Making

Process

Select

Alternative

ImplementAlternative

EvaluateResults

1

DevelopAlternatives

AnalyzeAlternatives

DevelopDecisionCriteria

AllocateWeights to

Criteria

2 3

4 5

6

7

8


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Step 2: Decision Criteria

Factors that are relevant in

making the decision

Price

Interior comfort

Durability

Repair record

Performance

Handling


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Determining the relative priority

of each of the criteria

Step 3: Allocating Weights


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Problem: To purchase a new car

Criterion Weight

Price 10

Interior comfort 8

Durability 5

Repair record 5

Performance 3

Handling 1


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Concluding Steps in Making a Decision

Step 6: Select the best

Step 7: Implement decision

Step 8: Evaluate decision


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Assumptions Of Rationality

RationalDecision

Making

Problem is

clear and

unambiguous

Single, well-

defined goalis to be achieved

All alternatives

and

consequences

are known

Preferences

are clear

Preferences

are constant

and stable

No time or cost

constraints exist

Final choice

will maximize

payoff

Prentice Hall, 2002Robbins et al., Fundamentals of Management, 4th CanadianEdition

2005 Pearson Education Canada Inc.

FOM 4.12


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Creativity and Decision Making

Creativity is the ability to produce novel anduseful ideas

Important to decision making as it allows the

decision-maker to see problems that others

cant

It helps identify more viable alternatives


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Unleashing Creative Potential

Thinking out of the box Using the right side of your brain

Three-component model of creativity

Expertise

Creative-thinking skills Intrinsic task motivation


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Bounded Rationality

Uncertainty

Risk

Satisfying

Focusing on highly visible choices


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Well-Structured vs. Ill-Structured Problems

Straightforward

Familiar

Easily-defined

New or unusual

Ambiguous information

Incomplete information


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Categories of Decisions

Programmed

Non-programmed


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Procedure

Rule

Policy

Programmed Decision


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Programmed

Decisions

Non-programmed

Decisions

Relationship of Problems, Decisions, and

Level

Type of

ProblemLevel

Ill-Structured

Well-Structured

Top

Lower


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Advantages of Group Decision-Making

More complete information

Diversity of experience

Generation of more

alternatives

Solutions more likely to be

accepted by those concerned


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Ways to Improve Group Decision-Making

Brainstorming Nominal group technique

Electronic meetings


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Decision-Making and National Culture

Differs from one country to another

Need to recognize what is acceptable

Managers can expect high payoff if they canaccommodate the diversity


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How Are Decisions Actually Made in

Organizations (contd)

How/Why problems are identified

Visibility over importance of problem

Attention-catching, high profile problems

Desire to solve problems

Self-interest (if problem concerns decision maker)

Alternative Development

Satisficing: seeking the first alternative that solvesproblem.

Engaging in incremental rather than uniqueproblem solving through successive limitedcomparison of alternatives to the currentalternative in effect.


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Intuition

Intuitive Decision Making

An unconscious process created out of distilledexperience.

Conditions Favoring Intuitive Decision Making

A high level of uncertainty exists

There is little precedent to draw on

Variables are less scientifically predictable

Facts are limited

Facts dont clearly point the way

Analytical data are of little use

Several plausible alternative solutions exist

Time is limited and pressing for the right decision


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Cultural Differences in Decision Making

Problems selected

Time orientation

Importance of logic and rationality

Belief in the ability of people to solve problems

Preference for collect decision making


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Ways to Improve Decision Making

1. Analyze the situation and adjust your decision

making style to fit the situation.

2. Be aware of biases and try to limit their impact.

3. Combine rational analysis with intuition to

increase decision-making effectiveness.

4. Dont assume that your specific decision style is

appropriate to every situation.

5. Enhance personal creativity by looking for novelsolutions or seeing problems in new ways, and

using analogies.


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STRESS MANAGEMENT


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Work Stress and Its Management

Stress

A dynamic condition in which anindividual is confronted with anopportunity, constraint, or demand

related to what he or she desires andfor which the outcome is perceived tobe both uncertain and important.


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Potential Sources of Stress (contd)

Individual Factors

Family and personal relationships

Economic problems from exceeding earning capacity

Personality problems arising for basic disposition

Individual Differences

Perceptual variations of how reality will affect theindividuals future.

Greater job experience moderates stress effects.

Social support buffers job stress.

Internal locus of control lowers perceived job stress. Strong feelings of self-efficacy reduce reactions to job

stress.


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Consequences of Stress

High LevelsHigh Levels

of Stressof Stress

PhysiologicalPhysiological

SymptomsSymptomsBehavioralBehavioral

SymptomsSymptoms

PsychologicalPsychological

SymptomsSymptoms


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Managing Stress

Organizational Approaches

Improved personnel selection and job placement

Training

Use of realistic goal setting

Redesigning of jobs

Increased employee involvement

Improved organizational communication

Offering employee sabbaticals

Establishment of corporate wellness programs


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Inverted-U Relationship between Stress and

Job Performance

OPTIMAL

ALERT ANXIETY

SLEEPDISORGANISED

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