1. Decision Making in Organizations
Chapter 10
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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.
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3. 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.
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Decision Making
The process of making choices from among several alternatives.
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5. Decision-making Process
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6. Programmed vs. Nonprogrammed Decisions
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Risk
Probabilities
Objective
Subjective
Reducing uncertainty
Establish linkages with other organizations
Information
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8. Top-Down vs. Empowered Decisions
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9. Individual Decision Styles
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Group Influences
Potential benefits
Pooling of resources
Specialization of labor
Greater acceptance
Potential problems
Wasted time
Disruptive conflict
Intimidation by group leaders
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Groupthink
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12. Organizational Influences
Political pressures
Time pressure
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13. Rational-Economic Model
Maximize chance of attaining goals
Consider all possible alternatives
Select optimal solution
Normative (prescriptive) approach
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Administrative Model
Bounds to rationality
Satisfying decisions
Bounded discretion
Descriptive (proscriptive) approach
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Image Theory
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16. Individual Decision Imperfections
Framing Effects
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17. Individual Decision Imperfections
Heuristic
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18. Individual Decision Biases
Implicit favorite
Hindsight
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19. Individual Decision Biases
Person Sensitivity
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20. Individual Decision Biases
Escalation of Commitment
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21. Group vs. Individual Decision Making
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22. Group Creative Problem Solving
Brainstorming
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23. Training Individuals to Improve Group Performance
Hypervigilance
Unconflicted adherence
Unconflicted change
Defensive avoidance
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24. Techniques for Enhancing Group Decisions
Delphi Technique
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25. Techniques for Enhancing Group Decisions
Nominal Group Technique
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26. Techniques for Enhancing Group Decisions
Stepladder Technique
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27. Effective Decisions Computer-based Approaches
Electronic meeting systems
Group decision support
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28. Effective Decisions Computer-based Approaches
Computer-assisted Communications
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29. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
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