Decision Making in Organizations Chapter 10 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Learning Objectives Identify the steps in the analytical model of decision making and distinguish between the various types of decisions people make. Describe different individual decision styles and the various organizational and cultural factors that influence the decision-making process. Distinguish among three approaches to how decisions are made: the rational-economic model, the administrative model, and image theory. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Learning Objectives Identify the various factors that lead people to make imperfect decisions. Compare the conditions under which groups make superior decisions than individuals and when individuals make superior decisions than groups. Describe various traditional techniques and high- tech techniques that can be used to enhance the quality of individual and group decisions. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Decision Making The process of making choices from among several alternatives. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Decision-making Process Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Programmed vs. Nonprogrammed Decisions Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Risk Probabilities Objective Subjective Reducing uncertainty Establish linkages with other organizations Information Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Top-Down vs. Empowered Decisions Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Individual Decision Styles Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Group Influences Potential benefits Pooling of resources Specialization of labor Greater acceptance Potential problems Wasted time Disruptive conflict Intimidation by group leaders Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Groupthink Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Organizational Influences Political pressures Time pressure Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Rational-Economic Model Maximize chance of attaining goals Consider all possible alternatives Select optimal solution Normative (prescriptive) approach Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Administrative Model Bounds to rationality Satisfying decisions Bounded discretion Descriptive (proscriptive) approach Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Image Theory Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Individual Decision Imperfections Framing Effects Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Individual Decision Imperfections Heuristic Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Individual Decision Biases Implicit favorite Hindsight Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Individual Decision Biases Person Sensitivity Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Individual Decision Biases Escalation of Commitment Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Group vs. Individual Decision Making Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Group Creative Problem Solving Brainstorming Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Training Individuals to Improve Group Performance Hypervigilance Unconflicted adherence Unconflicted change Defensive avoidance Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Techniques for Enhancing Group Decisions Delphi Technique Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Techniques for Enhancing Group Decisions Nominal Group Technique Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Techniques for Enhancing Group Decisions Stepladder Technique Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Effective Decisions Computer-based Approaches Electronic meeting systems Group decision support Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Effective Decisions Computer-based Approaches Computer-assisted Communications Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall