What is a simple, routine matter for which a manager has an established decision rule- The manager performs the decision activity on a daily basis. Re-occurring and does not require a lot of analysis
Programmed decisions
Decision is a choice made from
available alternatives
_____________________are new, complex decision that requires a creative solution.
Non-programmed decisions
The decision is unique and unstructured and requires considerable judgment
_______________is a major part of input for non-programmed decisions
Intuition
Identification of the __________ is important, otherwise the manager may be reacting to symptoms
real problem
1st Step in the Decision Making Process
Defining the problem
3rd Step in the Decision Making Process
Evaluating the data and diagnosing the situation
Optimizing is
defined as the term used for Selecting the “best” alternative.
Satisficing is
defined as selecting the alternative that minimally meets the decision criteria
7th Step in the Decision Making Process
GATHER FEEDBACK
(Once the decision is made feedback concerning the
outcomes is vital to determine success or missed opportunity)
the 8th Step in the Decision Making Process
FOLLOW-UP
(Decision making is not complete without some form of follow-up and appraisal of actions taken. When results are not as anticipated, each step of the process has to be repeated and evaluated)
The Decision Making Process is a______________ .
never ending process
(Solutions may need to be altered or revised)
The final step in the decision-making process is
Feedback and Monitoring.
Effective Decisions are?
A timely decision that meets a desired objective and is acceptable to those individuals affected by it.
The rational model of decision making assumes the decision maker...
can calculate the probability of success for alternatives
A Decision Maker using the rational model can calculate the probability of success for each alternative.
(T or F)
True
In the rational model the decision maker strives to_________ ,
that is to select the best possible alternative.
OPTIMIZE
BOUNDED RATIONALITY THEORY was developed by
Herbert Simon
Given the assumptions of the rational model, it has been deemed unrealistic because there are time constraints and limits to knowledge and information processing capabilities.
(T or F)
True
Shortcuts in decision making that save mental activity are known as?
Heuristics or Gut Decisions
An effective decision is timely, acceptable to the individuals affected by it, and
meets the desired objective.
What is the model that is most realistic in portraying the managerial decision process.
Bounded rationality
Under what Theory are managers comfortable making decisions without identifying all alternatives and options
Bounded Rationality Theory
What is an important element of the bounded rationality model
Satisficing
Risk Aversion is
Tendency to choose options that entail fewer risk takers
Who are more adverse to risk taking ?
Woman
Escalation of Commitment is caused by
the tendency to continue to support a failing course of action.
Which is a way not to Deal with Escalation of Commitment
1-Split responsibility for decisions
2-Provide a graceful exit for individuals so their image is not tarnished
3-Have groups rather than individuals make the initial investment decision diffuses responsibility for failed decision
4- Act autonomously
4- Act autonomously
what are the 4 steps of the Z-Model of problem solving
1-Examine the facts and details
2-Generate alternatives
3-Analyze the alternatives objectively
4-Weigh the impact (feeling)
An individual’s preference for gathering information and evaluating alternatives is?
Cognitive Style
The left side of your brain is the center for
logic, detail and planning
The right side of your brain is the center for
creative functions
The right side of the brain is best used for
developing visions and strategic plans
How do you develop the Left side of the brain ?
By setting goals for completing tasks, and work to attain these goals
How do you develop the Right side of the brain ?
by asking “what if” questions.
In the considering whether the right or the left part of the brain should be utilized in decision making, the ideal situation is to be
brain lateralized.
If a person crafts a vision and plan strategically they are _____ brain dominant
right
What is a fast, positive force in decision making utilized at a
level below consciousness that involves learned patterns of information?
Intuition
What is the process influenced by individual and organizational factors that results in the production of novel and useful ideas, products, or both?
Creativity:
Intuition Common Assumptions are?
1-Involves learned patterns of behavior
2-They are Decisions made on “hunches" or Gut Instinct
3-are a positive force in decision making
4-they are fast.
Who in his research found that managers do not appear to use a step by step approach to decision making
Henry Mintzberg
Four stages of the creative process
Preperation
Incubation
Verification
Illumination
________ is the stage of creativity where one engages in other
activities while the mind considers the problem.
Incubation
_________ is the stage that occurs when you sense a resolution to the problem “a light bulb goes on."
Illumination
People with a “_________________” were more successful for creative problem solving.
Positive Mental Attitude
Organizational influences-Can either support creativity or
impede efforts.
Creative organizations include supportive relationships with supervisors, a flexible workplace and
participative decision making.
Managers of the future need to develop __________ in the ability to promote creativity in organizations.
competencies
Name the 4 Types of Creativity
1-Responsive
2-Expected
3-Contributory
4-Proactive
A common mistaken assumption is that you either have creativity or don’t.
(T or F)
True, that is a common Mistake but - Creativity can be learned.
The organizational foundation of Participative Decision Making are?
A participative and supportive culture is essential
Team oriented work design lead to broader task and responsibility.
Participative decision making tends to be associated with higher levels of employee job satisfaction.
(T or F)
True
Name the 3 Individual Prerequisites of Participative Decision Making
1–Capability to become psychologically involved in participative activities
2–Act autonomously
3–Ability to see personal benefit
In Group Decision Making ______________ is a positive force that occurs in groups when group members stimulate new solutions to problems through the process of mutual influence and encouragement within the group.
Role of synergy
truth wins rule is
Used best when the decision has a correct answer.
The majority wins rule-The group supports whatever position is taken by the majority of its members. This is used in
judgment tasks (that is when a decision is a matter of preference or opinion)
When the group decision involves a matter of preference or opinion, the most appropriate social decision scheme is
the consensus rule.
A shortcoming or liability of the group process in decision making is
too much time spent making the decision
Three disadvantages of group decision making.
Pressure to conform
Domination of the group by an individual or clique
Time
___________is a deterioration of mental efficiency, reality testing and moral judgment resulting from pressure within the group.
Groupthink
_____________ is the tendency for group discussion to produce shifts toward more extreme attitudes among members.
Group Polarization
When a decision must be made quickly, there is more potential for Group Think.
(T or F)
True
What is defined as the majority view and judgments that are assumed to be unanimous?
