Topic 6 Flashcards
(32 cards)
What is Decision Making?
Identifying and choosing solutions that lead to a desired end result
What is a Programmed Decision?
Recurs often enough for a decision rule to be developed
What is a Decision Rule?
Tells decision makers which alternative to choose once they have predetermined information about the decision situation
What is a nonprogrammed decision?
Recurs infrequently, and there is no previously established decision rule
List the information required for decision making
Information ranges across endpoint conditions
- Condition of certainty
- Condition of risk
- Condition of uncertainty
Information required for decision making: What is Condition of certainty?
Outcomes of each alternative are known
Information required for decision making: What is Condition of risk?
Certainty of an outcome is unknown but there is enough information to estimate probabilities of various outcomes
Information required for decision making: What is Condition of uncertainty?
There is insufficient information to estimate the probability of possible outcomes
What is a Rational Model of decision making?
Logical four-step approach to decision making
The Decision-Making Process: Describe the steps in a Rational Approach
- State situational goal
- Identify problem
- Determine decision type
- Generate alternatives
- Evaluate alternatives
- Choose an alternative
- Implement the plan
- Control; measure and adjust
The Decision-Making Process: The Rational Approach - What are the strengths?
- Forces decision in a logical, sequential manner
- In-depth analysis enables choose on the basis of information rather than emotion or social pressure
The Decision-Making Process: The Rational Approach - What are the weaknesses?
- Rigid underlying assumptions often unrealistic
- Information limited by time or cost constraints, manager’s ability to process information
- Not all alternatives easily quantified
- Outcomes unknown due to unpredictability of future
The Decision-Making Process: What are Non-Rational Models?
- Based on premise that decision making is not rational
- Decision making uncertain, difficult and not all info known
The Decision-Making Process: What are the 2 models of Non-Rational Models?
- Simon’s Normative Model
- Garbage Can Model
The Decision-Making Process: Non-Rational Models - What is Simon’s Normative Model of Decision Making?
- Decision makers are guided by bounded rationality (constraints that restrict decision making)
- Decision making characterised by limited information processing, satisficing
The Decision-Making Process: Non-Rational Models - Simon’s Normative Model of Decision Making - What is Satisficing?
Searching for and choosing an acceptable or satisfactory response to problems and opportunities, rather than trying to make the best decision
The Decision-Making Process: Non-Rational Models - What is the Garbage Can Model of Decision Making?
- Based on premise that decision making is slopping and haphazard
- Decisions are made as a result of the interaction between: problems, solutions, participants and choice opportunities
What are the 4 Factors involved in Decision Making Intuition?
- Expertise
- Feelings
- Hollistic Hunch
- Automated experience
When should groups be included in decision making?
- If additional information would increase the quality of the decision
- If acceptance is important
- If people can be developed through their participation
What are the Advantages of Group-Aided Decision-Making?
- Greater pool of knowledge
- Different perspectives
- Greater comprehension
- Increased acceptance
- Training ground
What are the Disadvantages of Group-Aided Decision-Making?
- Social pressure
- Domination by a vocal few
- Political behaviour
- Goal displacement
- ‘Group think’
List Group Problem-Solving Techniques
- Brainstorming
- Nominal group technique
- Delphi technique
- Computer-aided decision making
Group Problem-Solving Techniques: What is Brainstorming?
Process to generate a quantity of ideas
Group Problem-Solving Techniques: What are brainstorming rules?
- Quantity over quality
- Freewheeling should be encouraged; do not set limits
- Suspend judgement
- Ignore seniority
