Chapter 14Decision Making and Control.ppt

Chapter 14Decision Making and Control Decision Making How to Make Good Decisions Problem Solving Building Decision Making Skills Controlling Elements in Managerial Decisions Decision: A conscious choice among alternative courses of action. Therefore the 3 elements are: A conscious choice among alternatives A specific purpose A course of action Approaches to Decision Making Rational (Logical Approach) Intuitive Approach Unable to decide (Indecisive Approach) Impulsive Approach Kinds of Decisions a Supervisor Makes Routine data based decisions Serious decisions having important consequences Emergency decisions requiring distinctiveness Problem- Solving Decisions beyond your authority A Simple Version of Decision Making (The Logical Approach) Define the problem (conditions and limitations) and the set of objectives Analyze the problem: fact finding Develop alternative solutions: brainstorming Decide on the best solution Convert the decision into action Follow up Pattern of Problem Solving Describe the problem Search out the cause, get the facts Define the real problem and set objectives Develop alternative solutions Decide on the best solution Implement the decision Follow up Participative Problem Solving Argument for Group Decision Making : You get more info. And expertise relevant to the decision You get more good ideas and can generate more and better alternatives People thinking together can arrive at better decisions because of the stimulation and interplay of different points of view Participants are more committed to carrying out Coordination and communication are simpler and better because everyone understands Participative Problem Solving Criticism of group decision making: It takes longer in a group There is usually a dominator in a group Group participants get involved in winning arguments and showing off If consensus is required people may conform to get the meeting over Consensus leads to mediocre decisions Group Decision Making Works Best When: Me