Decision Making

1

Write Smart Co. has a very specific decision making process that it follows for handling client problems that has been quite successful for the firm. The first stage is _______, in which the team members at Write Smart help the client figure out exactly what the problem is that it faces.

A) Identifying and diagnosing the problem

B) Evaluating the resultsC) Generating alternative solutionsD) Implementing the decision

2

3

IntroductionIntroductionMaking decisions under conditions

of risk and uncertainty is one of the most important activities that managers engage in.

Generally, there is a lack of information and a limited amount of time available to make the decision.

Procrastinating and not making a decision sometimes has greater risk than making it.

4

Rational orRational or ? ?

5

Rational Rational oror

Exercise:With your partner solve the two problems on pages 1& 2

You will have 15 minutes to complete both exercises… 6

RFP

7

Creative Problem Solving AssessmentCreative Problem Solving Assessment

Complete Pages 3 - 5Complete Pages 3 - 5

8

Advantages and Disadvantages of Group Advantages and Disadvantages of Group Decision MakingDecision Making

AdvantagesIncreased

acceptanceGreater pool of

knowledgeDifferent

perspectivesGreater

comprehensionTraining ground

DisadvantagesSocial pressureMinority

dominationLogrollingGoal

displacement“Groupthink”

9

The The Abilene Abilene ParadoxParadox

with

Dr. Jerry B. Harvey

10

Decision MakingDecision MakingThe process of identifying

problems and opportunities and resolving them.

Management decisions can be made by managers, teams, or individual employees, depending on:The scope of the decision, andThe design and structure of

the organization.

11

ProgrammabilProgrammabilityity

UncertaintyUncertainty

RiskRiskConflictConflict

Decision Decision ScopeScope

CrisisCrisis

12

Identifying Identifying and and

diagnosing diagnosing the problemthe problem

Generating Generating alternative alternative solutionssolutions

Evaluating Evaluating alternativesalternatives

Selecting Selecting the best the best

alternativealternativeImplementing Implementing the decisionthe decision

Evaluating Evaluating the decisionthe decision

13

Typical problems Typical problems that require decisionsthat require decisionsA high level of employee turnover.

A reduction in firm profits.

Unacceptable levels of “shrinkage” in a store.

Lower than planned quality of finished goods.

An unexpected increase in workplace injuries.

The invention of a new technology that can increase the productivity of the workforce.

14

Evaluating AlternativesEvaluating AlternativesDecision criteria should be related to

the performance goals of the organization and its subunits.

Decision criteria can include: Costs Profits Timeliness Whether the decision will work Fairness

15

Evaluating AlternativesEvaluating Alternatives (cont)(cont)

A practical way to apply decision criteria is to consider:Decision quality – aspect of decision making based on such facts as costs, revenues, and product design specifications.

Decision acceptance – aspect of decision making based on people’s feelings.

16

Approaches to selecting Approaches to selecting the best alternativethe best alternative

Optimizing – selecting the best alternative from among multiple criteria.

Satisfying – selecting the first alternative solution that meets a minimum criterion.

17

Leadership Style

Devil’s Advocate Role

Stimulating Creativity

18

Leader Decision Making StylesLeader Decision Making Styles

Decide and persuadeDiscover facts and decideConsult and decideConsult with group and decideGroup decision

19

Brainstorming Storyboarding

Nominal Group Technique

(NGT)

Delphi Technique

20

Skills for Decision Skills for Decision Making ProcessMaking ProcessTime management skills

To make good decisions, managers need time to understand the problem and develop creative solutions.

Delegation skillsManagers who know how to delegate

are able to accomplish more than those who feel the need to be involved in every decision, no matter how trivial.

21

Why Leaders Don’t Why Leaders Don’t DelegateDelegate

Insufficient timePerception that the job is too importantLeader’s belief that he/she can do it betterLeader enjoys doing the jobLack of confidence in subordinatesFear subordinates might do job betterConcern that the Boss will think the leader

isn’t working

22

Effective Time Effective Time Management PracticesManagement Practices

Plan a list of things that need to be done today.

Plan weekly, monthly, and annual schedules of activities.

Schedule difficult and challenging activities when you are at your highest level of energy and alertness.

Set deadlines.

23

Effective Time Effective Time Management PracticesManagement Practices (cont)(cont)

Answer phone messages and e-mail in batches during a lull in your work schedule.

Have a place to work uninterrupted.

Do something productive during non-productive activities.

24

Effective DelegationEffective Delegation (cont)(cont)

Keep communication channels open. Allow employees to do the task the way

they feel comfortable doing it. Trust employees’ capabilities. Check on the progress of the

assignment. Hold the employee responsible for the

work. Recognize what the employee has done,

and show appropriate appreciation.

25

Rules for Successful DelegationRules for Successful Delegation

1. Describe the task2. Outline expected

results3. Discuss resources4. Confirm

understanding5. Solicit ideas6. Establish methods

of working and reporting

26

Guidelines for Giving Guidelines for Giving DirectionDirectionUse familiar wordsDefine new termsUse logical sequencingProvide a visual model or

demonstrationCheck for understandingAllow the listener to clarify

instructions

27

DELEGATION IS...DELEGATION IS...

ACCOMPLISHINGORGANIZATIONAL

PURPOSES THROUGH THE PROPER DEVELOPMENT

OF PEOPLE

28