MS Tutorial 7
- 1. Tutorial 7 Decision Making (Part 2) QSB2413 Management Science
- 2. Managerial Decision Making Categories of decision (Programmed/Non-Programmed) Decision Characteristics (Certainty/Risk/Uncertainty/Ambiguity) Decision-making Models (Rational-Economic/Behavioral) Decision-Making Process (7 steps should take) Decision Style (Directive/Analytical/Conceptual/Behavioral) Participative Decision Making (Vroom-Jago Model) & Styles
- 3. Decision-Making Styles • Differences among people with respect to how they perceive problems and make decisions. • Not all managers make decisions the same way. • Four different decision-making styles:- 1. Directive style 2. Analytical style 3. Conceptual style 4. Behavioral Style
- 4. (1) Directive Style • People who prefer simple, clear-cut solutions to problems. • Make decisions quickly. • May consider only one or two alternatives. • Efficient and rational. • Prefer rules or procedures.
- 5. (2) Analytical Style • Complex solutions based on as much data as they can gather. • Carefully consider alternatives. • Base decision on objective, rational data from management control systems and other sources. • Search for best possible decision based on information available.
- 6. (3) Conceptual Style • Consider a broad amount of information. • More socially oriented than analytical style. • Like to talk to others about the problem and possible solutions. • Consider many broad alternatives. • Rely on information from people and systems. • Solve problems creatively.
- 7. (4) Behavioral Style • Have a deep concern for others as individuals. • Like to talk to people one-on-one. • Understand their feeling about the problem and the effect of a given decision upon them. • Concerned with the personal development of others. • May make decisions to help others achieve their goals.
- 8. Questions 1. Describe the participative decision-making approach. 2. Describe the advantages of participative decision making when compared to individual decision making.
- 9. Answers 1. Managers / Employers often work with their employees in sharing their ideas and information. Employees from the required / different levels are allowed to participate in decision making to increase decision quality. This is important of having subordinates commit to the decisions made.
- 10. Answers 2. Advantages • Experience and expertise of several individuals available • More information, data and facts accumulated • Problems viewed from several perspectives • Higher member satisfaction • Greater acceptance and commitment to decisions