Post on 02-Jun-2018
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2006 Thomson-Wadsworth
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2006 Thomson-Wadsworth
Learning Objectives
Define decision making. Describe how critical thinking skills
are used in decision making. State how decisions relate to
problem solving. Describe each step in the decision-
making process.
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Learning Objectives
Differentiate between structured andunstructured problems, and between
programmed and non-programmeddecisions. Describe the different styles used by
managers for decision making. Discuss how ambiguity, rationality, and
intuition influence decision making.
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Learning Objectives
Identify the relationship betweendecision making and risk.
List the advantages anddisadvantages of group decisionmaking.
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The Process of Making
Decisions Decision-Making Process
The logical, stepwise approach that is used
to make a choice between options, to solvea problem, or to resolve a dilemma. Contingency Planning
Anticipation of the need to make a decision
some time in the future and making thedecision in advance so that it can beimplemented in a timely manner at the timeit is needed.
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The Process of Making
Decisions
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The Process of Making
Decisions Problem Identification
The first step in the decision-makingprocess; the act of finding a problemand acknowledging that it exists.
Problem - A difference between whatis and what should be.
ex: nutrient analysis software inclinical nutrition dept. needs upgrade
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The Process of Making
Decisions Criteria for decision making
Establish Decision-MakingCriteria - The second step in thedecision-making process; determiningwhich factors will have the mostrelevance in solving a given problem.
ex: list required and desired specs.for nutrient analysis software
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The Process of Making
Decisions Weighting criteria
Weighting the Decision-MakingCriteria - The third step in thedecision-making process; assigningeach established criterion a ranking interms of importance to the decisionthat is to be made.
ex: Table 4.2...
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The Process of Making
Decisions Developing alternatives
Identify the Alternatives - Thefourth step in the decision-makingprocess; the act of determining thedifferent options available to solvethe problem at hand.
ex: research available softwarepackages
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The Process of Making
Decisions Analysis of alternatives
Analyze the Alternatives - The fifth
step in the decision-making process;the process of comparing andexamining the alternatives availableby measuring them against the same
standards, using only relevantcriteria. ex: quantified analysis in Table 4.3...
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The Process of Making
Decisions Choosing an alternative
Making the Decision - The sixth stepin the decision-making process;involves choosing which alternative(s)will best solve the problem based onthe analysis that has been done.
ex: choose software package topurchase (Option C from Table 4.3)
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The Process of Making
Decisions Implementing the decision
Implement the Decision - The
seventh step in the decision-makingprocess; the act of carrying out thedecision that has been made; ofteninvolves communicating exactly what
is to happen based on the decision. ex: purchase and install software, traindietitians to use it, enter data, etc.
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The Process of Making
Decisions Evaluation
The eighth and last step of the
decision-making process; receivingfeedback about the decision that hasbeen implemented
Was it effective, efficient, appropriate,
and adequate? ex: Did the software upgrade improve
efficiency, quality patient service, etc.?
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Types of Decisions
Structured problems and programmeddecisions
Structured Problem - A discrepancybetween what is and what should be that isboth routine and predictable.
Programmed Decisions - Decisions thatare made routinely, often relying on
precedent, in which information can betransferred from one similar situation to thenext; usually used to solve structuredproblems.
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Types of Decisions
Structured problems andprogrammed decisions
Programmable Decisions -Decisions that, though not yetprogrammed, are of the routine typethat can be programmed.
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Types of Decisions
Unstructured problems andnonprogrammed decisions
Unstructured Problem - A discrepancybetween what is and what should be that isnew, unusual, and often unpredictable.
Nonprogrammed Decisions - Decisions
that are used to resolve unstructuredproblems; these decisions require muchresearch and thought.
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Types of Decisions
Unstructured problems andnonprogrammed decisions
Institutional Memory - Thehistorical precedent of anorganization that can be used in thedecision-making process.
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Types of Decisions
Managerial levels and decisionmaking
Type of decision made by a managercorrelates with his/her managementlevel
Most nonprogrammed decisions aremade by upper-level managers
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Decision-Making Styles
Problem Avoider A decision-making style in which the
person does not recognize a problemor chooses to avoid it; one who maymake the choice not to make adecision.
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Decision-Making Styles
Problem Solver A decision-making style in which the person
recognizes existing problems and deals withthem in a timely manner.
Reactive - A characteristic of a problemsolver who acts on problems after theyhave become obvious.
Problem Seeker A decision-making style in which the person
is proactive and deals with potentialproblems before they become obvious.
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Decision-Making Styles
Ambiguity versus rationality Directive Decision Maker - A type of
decision maker characterized by beingefficient and logical, requiring littleinformation to make a decision, looking atfew alternatives, and exhibiting a lowtolerance for ambiguity.
Conceptual Decision Maker - A type ofdecision maker characterized by being opento new ideas, looking at many alternatives,having a high tolerance for ambiguity, andrelying on instinct versus logic and reason.
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Decision-Making Styles
Ambiguity versus rationality Analytic Decision Maker - A type of
decision maker who enjoys solvingproblems, likes to seek alternatives andinformation, can tolerate ambiguity, andapplies a rational, methodical approach tosolve problems.
Behavioral Decision Maker - A type ofdecision maker who uses intuition, feelings,and perceptions versus actual data, andwho dislikes ambiguity.
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Risk in Decision Making
Certainty A situation in which the outcome of a
decision is known and expected. Risk
The unknown or uncertain factors oroutcomes involved in making a decision.
Uncertainty A situation in which the outcomes of a
decision cannot be predicted with anydegree of accuracy.
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Group Decision Making
Accommodation A situation in which members of a
group feel that they have to acceptthe position of the dominant memberof the group.
De Facto Decisions Decisions that are made passivelywith no obvious objections expressed.
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Group Decision Making
Groupthink A characteristic of groups that
evolves when the cohesiveness of thegroup becomes more important thanthe problem that needs to be solved.
In this situation, members feel loyal
to each other and may not want to jeopardize this unity by expressingopposing opinions.
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Group Decision Making
Risk in group decision making Shared risk = more willingness to
take risks. Information pool is larger.
Maximizing group decision making Brainstorming - The informal
process of tackling a given problemby contributing as many ideas aspossible without analysis or criticism.
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Group Decision Making
Maximizing group decision making Nominal Group Technique A
methodical, rational approach to making agroup decision in which each membercontributes ideas, and alternatives areranked to deduce a sensible, fair decision.
Delphi Technique - An approach tocoming up with a group decision similar tothe nominal group technique except thatmembers do not meet but insteadcommunicate and analyze ideas throughwritten communication until consensus is
reached.
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Conclusion
Decision making is an eight-stepprocess that includes problemidentification, establishment andweighting of criteria, development andanalysis of alternatives, making thedecision, implementing it, and followingup.
Structured problems requireprogrammed or programmabledecisions; unstructured problemsrequire nonprogrammed decisions.
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Conclusion
Different levels of managers tend tomake different types of decisions.
Managers develop personal decision-making styles that can be describedusing one or more of the followingterms: avoidance, reactive, proactive,directive, conceptual, analytic, andbehavioral.
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Conclusion
There are distinct advantages anddisadvantages to group decision
making; techniques are availableto maximize the group decision-making process.
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Reality Check Decision
Clusters Many decisions may cluster around
a particular problem Making one decision may trigger aseries of other decisions ex: Reduce spending on oral and
enteral supplements in a smallcommunity hospital/skilled nursingfacility.