management - chapter 7 : individual & group decision making
TRANSCRIPT
FHBM1114 MANAGEMENTTOPIC 5 : INDIVIDUAL & GROUP DECISION MAKING
PRESENTED BY :CHIA WEY JIAN
LEE YU SENGTEY SHU SHAN
WONG CHUN MENG
Meaning of Decision Making :Decision • is a choice made between two or more available
alternatives.
Decision making • is the process of choose the best alternative
for reaching objectives.
Types of DecisionsProgrammed Decisions : • Routine and repetitive• Eg : habit, clerical routine work
Non-programmed Decisions :• Non-routine, unfamiliar circumstances, unique• Eg : judgement, creativity
Decision Making Styles• are differences among people with respect to how they perceive
problems and make decisions
Directive Style• Action-oriented, focus on facts• Efficient and logical• Making fast decision
Analytical Style• Careful, like lots of information and alternative choices• Consider more information• Take longer to make decisions• Able to cope changing situations
Conceptual Style• Rely on intuition and have a long-term perspective• tend to focus on people or social• Very broad out look• Focus on long run• Good at finding creative solutions
Behavioral Style• Most people-oriented• Work well with others• Receptive to suggestions• Prefer verbal to written information• Avoid conflict, concern others
Knowing Your Decision Making Style
•Make adjustments to the situation and results.
•Helps understand yourself.
•Able to influence others by being aware of styles.
• Prove yourself to be a valuable asset as a leader.
Rational Decision Making
•Multi-step process for making choices between alternatives.
• Explains how managers should make decisions.
•Assumes managers will make logical decisions that will be
optimum in furthering the organization’s best interests.
• Four steps associated.
Step 1: Identify the Problem and Opportunity
• Problems or difficulties that inhibit the achievement of goals.
•Opportunities: situation that present possibilities for
exceeding existing goals.
•Diagnosis : analysing the underlying causes.
Step 2: Think Up Alternative Solutions
•After identified problem and opportunity, need to come up
with alternative solutions.
• For a programmed decision- easy and obvious.
• For a non-programmed decision- more creative, more better.
Step 3: Evaluate Alternatives & Select a Solution
•Not only according to cost and quality, but according to the
following question :
1. Is it ethical?
2. Is it feasible?
3. Is it ultimately effective?
Step 4: Implement & Evaluate the Solution Chosen
• Successful Implementation:
1. Plan Carefully.
2. Be Sensitive to those affected.
• Evaluation – follow up and evaluate the result
4 Possibilities if the solution is not working?
i •Give it more time
ii •Change it slightly
iii •Try another alternative
iv •Start over
Reason that Hindrances of Perfectly Rational Decision Making
Complexity
Limitation of Time & Money
Imperfect Information
Abundantly of Information
Different priorities
Conflicting goals
5 Advantages of Group Decision Making
Greater pool of knowledge
Different Perspectives
Intellectual Stimulation
Better understanding of decision rationale
Deeper commitment towards the decision
4 Disadvantages of Group Decision
Dominate & Intimidate
Groupthink
SatisficingGoal
Displacement
Group decision making are less efficient• Need a lot of time to make decision• Time pressures or serious effect of a decision• Use less information and fewer communication
channels• Probability of a bad decision increase
Group size affects the decision quality• Larger group, lower quality of the decision
They may be too confident• More confident about their judgement and
choices liability because it can lead to groupthink
Knowledge counts• Group members know a good deal about the
relevant issue The group leader has the ability to weight member’s opinion
4 Types of Group Problem Solving Techniques
Brainstorming
Nominal Group
Technique
Delphi Technique
Computer-aided decision
making
BIAS Decision
Overconfident Ignoring the situation
Basing decision on
prior decision belief
Not enough information
THE END