Management - Chapter 7 : Individual & Group Decision Making
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The document discusses individual and group decision-making processes, highlighting the definition of decision making, types of decisions, and various decision-making styles. It outlines the rational decision-making process in four steps, emphasizing the importance of ethical evaluation, implementation, and potential challenges. Additionally, it examines the advantages and disadvantages of group decision making, including techniques for problem-solving.
Management - Chapter 7 : Individual & Group Decision Making
- 1. FHBM1114 MANAGEMENT TOPIC 5 : INDIVIDUAL & GROUP DECISION MAKING PRESENTED BY : CHIA WEY JIAN LEE YU SENG TEY SHU SHAN WONG CHUN MENG
- 2. 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.
- 3. Types of Decisions Programmed Decisions : • Routine and repetitive • Eg : habit, clerical routine work Non-programmed Decisions : • Non-routine, unfamiliar circumstances, unique • Eg : judgement, creativity
- 4. Decision Making Styles • are differences among people with respect to how they perceive problems and make decisions
- 5. Directive Style • Action-oriented, focus on facts • Efficient and logical • Making fast decision
- 6. Analytical Style • Careful, like lots of information and alternative choices • Consider more information • Take longer to make decisions • Able to cope changing situations
- 7. 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
- 8. Behavioral Style • Most people-oriented • Work well with others • Receptive to suggestions • Prefer verbal to written information • Avoid conflict, concern others
- 9. 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.
- 10. 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.
- 11. 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.
- 12. 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.
- 13. 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?
- 14. 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
- 15. 4 Possibilities if the solution is not working? i • Give it more time ii •Change it slightly iii •Try another alternative iv •Start over
- 16. Reason that Hindrances of Perfectly Rational Decision Making Complexity Limitation of Time & Money Imperfect Information Abundantly of Information Different priorities Conflicting goals
- 17. 5 Advantages of Group Decision Making Greater pool of knowledge Different Perspectives Intellectual Stimulation Better understanding of decision rationale Deeper commitment towards the decision
- 18. 4 Disadvantages of Group Decision Dominate & Intimidate Groupthink Satisficing Goal Displacement
- 19. 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
- 20. 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
- 21. 4 Types of Group Problem Solving Techniques Brainstorming Nominal Group Technique Delphi Technique Computer- aided decision making
- 22. BIAS Decision Overconfident Ignoring the situation Basing decision on prior decision belief Not enough information
- 23. THE END