1. Chapter 14 Decision Making and Control
How to Make Good Decisions
Problem Solving
Building Decision Making Skills
Controlling

2. Elements in Managerial Decisions
Decision: A conscious choice among alternative courses of action.
Therefore the 3 elements are:
A conscious choice among alternatives
A specific purpose
A course of action

3. Approaches to Decision Making
Rational (Logical Approach)
Intuitive Approach
Unable to decide (Indecisive Approach)
Impulsive Approach

4. Kinds of Decisions a Supervisor Makes
Routine data based decisions
Serious decisions having important consequences
Emergency decisions requiring distinctiveness
Problem- Solving
Decisions beyond your authority
* It is essential to recognize which decisions need to be made now and are most important

5. A Simple Version of Decision Making (The Logical Approach)
Define the problem (conditions and limitations) and the set of objectives
Analyze the problem: fact finding
Develop alternative solutions: brainstorming
Decide on the best solution
Convert the decision into action
Follow up

6. Pattern of Problem Solving
Describe the problem
Search out the cause, get the facts
Define the real problem and set objectives
Develop alternative solutions
Decide on the best solution
Implement the decision
Follow up

7. Participative Problem Solving
Argument for Group Decision Making :
You get more info. And expertise relevant to the decision
You get more good ideas and can generate more and better alternatives
People thinking together can arrive at better decisions because of the stimulation and interplay of different points of view
Participants are more committed to carrying out
Coordination and communication are simpler and better because everyone understands

8. Participative Problem Solving
Criticism of group decision making:
It takes longer in a group
There is usually a dominator in a group
Group participants get involved in winning arguments and showing off
If consensus is required people may conform to get the meeting over
Consensus leads to mediocre decisions

9. Group Decision Making Works Best When:
Members are accustom to working together as a team and having differing expertise and point of view but common goals
The leader is skillful at keeping the meeting on target
The group is rewarded for making good decisions

10. Solving Peoples Problems
Personal problems are not yours to resolve but LISTENING can help.
Keep your own emotions out of it.
Try to identify the real problem.
If possible eliminate friction (ex. Food Expeditor).

11. Win-Win Problem Solving
Win-Lose: You win, worker loses
Lose-Win: You lose, worker wins (retreat and appeasement, no stand)
Lose-Lose: The compromise
Win-Win problem solving means you find a decision that satisfies both of you.
Include worker from the beginning: From defining the problem to carrying out an agreement

12. Guidelines for Building Decision Making Skills
Be sure of your authority for making decisions
Accept responsibility fully
Distinguish what's important
Make the decision at the time it is needed
Be alert to signs of problems needing solutions
Keep an open mind

13. Guidelines for Building Decision Making Skills
Don’t solicit advise but do consult your supervisor when a problem is beyond your ability to solve
Make sure that you are not part of the problem
Learn from your mistakes
Evaluate your decisions when carried out

14. Controlling
Controlling: process by which supervisors measure, evaluate, and compare results to goals, and standards previously agreed upon, and take corrective action when nessicary.
Major area is COST.
Productivity: efficiency which which inputs are converted into outputs.
Productivity standards: defined acceptable quantity of work expected.
Use control techniques.

15. Controlling Techniques
Require records and reports
Develop and enforce performance standards
Develop and enforce productivity standards Develop and enforce departmental policies and procedures
Observe and correct employee actions
Train and retrain employees
Discipline when appropriate
Be a good role model