Management - Chapter 7 : Individual & Group Decision Making
Transcript of Management - Chapter 7 : Individual & Group Decision Making
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FHBM1114 MANAGEMENTTOPIC 5 : INDIVIDUAL & GROUP DECISION MAKING
PRESENTED BY :CHIA WEY JIAN
LEE YU SENGTEY SHU SHAN
WONG CHUN MENG
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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.
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Types of DecisionsProgrammed Decisions : • Routine and repetitive• Eg : habit, clerical routine work
Non-programmed Decisions :• Non-routine, unfamiliar circumstances, unique• Eg : judgement, creativity
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Decision Making Styles• are differences among people with respect to how they perceive
problems and make decisions
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Directive Style• Action-oriented, focus on facts• Efficient and logical• Making fast decision
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Analytical Style• Careful, like lots of information and alternative choices• Consider more information• Take longer to make decisions• Able to cope changing situations
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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
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Behavioral Style• Most people-oriented• Work well with others• Receptive to suggestions• Prefer verbal to written information• Avoid conflict, concern others
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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.
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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.
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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.
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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.
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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?
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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
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4 Possibilities if the solution is not working?
i •Give it more time
ii •Change it slightly
iii •Try another alternative
iv •Start over
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Reason that Hindrances of Perfectly Rational Decision Making
Complexity
Limitation of Time & Money
Imperfect Information
Abundantly of Information
Different priorities
Conflicting goals
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5 Advantages of Group Decision Making
Greater pool of knowledge
Different Perspectives
Intellectual Stimulation
Better understanding of decision rationale
Deeper commitment towards the decision
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4 Disadvantages of Group Decision
Dominate & Intimidate
Groupthink
SatisficingGoal
Displacement
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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
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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
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4 Types of Group Problem Solving Techniques
Brainstorming
Nominal Group
Technique
Delphi Technique
Computer-aided decision
making
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BIAS Decision
Overconfident Ignoring the situation
Basing decision on
prior decision belief
Not enough information
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THE END