Chapter 10 Decision Making. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and...

Chapter 10Decision Making

Human Behavior in Organizations, 2nd EditionRodney Vandeveer and Michael Menefee

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.2

Learning Outcomes: Decision Making Explain the satisficing model for

decision making. Describe the workings of the

implicit favorite model for decision making.

Outline the maximizing or rational decision making model.

Discuss the various group decision techniques.




Decision-Making The key to making a decision is

to understand the problem. Decision making would best be

described as an exercise in evaluating trade-offs.




ProblemsSituations in Life

Priority Problem

Causes for Problem

Most Likely Cause

Make A

Decision

Alternatives

1

2

3

4

5

6

Determining the need for a decision




Decision-Making Understanding the problem Problem-solving and decision-

making technique Analyze the facts Determining a course of action




Three Models for Decision-Making

Satisficing Model Implicit Favorite Model Maximizing or Rational

Decision-Making Model




The Satisficing Model

Expand onalternatives

Does alternativemeet satisficingCriteria?

Select firstalternative that meetscriteria and is considered“good enough”

Problemidentified

Problemsimplified

Satisficingcriteria set

Identifyalternatives

Comparealternativesone at a timeagainst criteria

YES

NO




The Implicit Favorite Model

Need for adecision isdetermined

Select an implicit favoritealternative

Identifyotheralternatives

Establishcriteria tomatch implicitfavorite

Comparealternatives withimplicit favoritecriteria

Confirmimplicitfavorite

Selectimplicitfavorite1 2 3

4

5




Six Steps to the Rational/Maximizing Decision-Making Model

Identify the need for a decision Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternative




Determining a Course of Action

There are five basic types of action that can be taken in problem-solving and decision-making: corrective action interim action preventive action contingency action adaptive action

Which oneis the best?




Who makes the decision? The manager makes the decision. The manager sells the decision. The manager presents the ideas and invites questions.

The manager presents tentative decisions subject to change.




Who makes the decision? The manager presents the problem, gets suggestions, and makes the decision

The manager defines the limits an asks the group to make the decision

The manager permits the subordinates to function within the limits defined by the superior.




Decision-Making Other issues to consider are:

quality issues time and timing commitment control




Group Decision-Making Interacting technique Brainstorming Nominal group technique Delphi technique Electronic meetings




Summary There are many ways to make decisions and solve

problems. This chapter looks at several of the more common ways available to the leader.

The implicit favorite model will serve one well if he or she already knows what he or she wants to do.

The satisficing model works well if time is a consideration and one only needs to determine the criteria and then selects the first solution that meets the criteria.




Summary The maximizing decision-making model

provides a means to prioritize and understand the problem, analyze the facts, and then determine a course of action.

There are five basic types of action that can be taken in problem-solving and decision-making: corrective action, interim action, preventive action, contingency action, and adaptive action.

Chapter 10 Decision Making. Human Behavior in Organizations, 2 nd Edition Rodney Vandeveer and...

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