DECISION-MAKING Chapter 16 Lecture 4

Rational Decisions are Based on These Assumptions: The problem is clear and unambiguous A single, well-defined goal is to be achieved All alternatives and consequences are known Preferences are clear Preferences are constant and stable There are no time or cost constraints Final choice will maximize economic payoffs

Intuitive Decision-Making Does not rely consciously on rational or linear thought processes May be based on experience Synthesizes isolated data into an integrated picture Views relationships and connections

Examine Your Own Decision Style Complete and score the Problem-Solving Style Questionnaire (PSSQ) As a class, we will show hands to see where each had the highest score In cases of ties, vote for each high score

Comparisons of Thinking and Feeling Types CharacteristicThinking typesFeeling types FocusLogic of situation, truth, organization principles Human values and needs, harmony, feelings, emotions Time orientationPast, present, futurePast Work environmentBusinesslike, impersonal, treat others fairly, well organized Naturally friendly, personal emphasizes harmony, care and concern for others StrengthsGood at logical organizations, tends to be firm and tough-minded, rational, objective, predicts logical results of decisions Enjoys pleasing others, sympathetic, loyal, draws out the feelings of others, takes interest in people as people Possible weaknessesOverly analytical, unemotional, too serious, often rigid, may try to impose ideas Sentimental, may postpone unpleasant task, may avoid conflict

Comparisons of Sensing and Intuitive Types CharacteristicSensation typesIntuitive types FocusDetails, practical, action-oriented, wants to get things done quickly Looks for patterns, likes ideas, tends to be innovative and like planning Time orientationPresent, live life as it isFuture achievement emphasizing change and rearranging Work environmentPays attention to detail and patient with them, does not make factual errors Looks at the “big picture,” patient with complexity, risk takers StrengthsPragmatic, results oriented, objective, competitive Original, imaginative, creative, idealistic Possible weaknessesMay avoid risks, be impatient with delays, decide too quickly, overlook long run, oversimplify a complex task May avoid follow-through, can make errors of fact, may be impractical