BUS 315 CH 7 Decision Making

satisficing model

managers seek alternatives until they find one that is satisfactory, not best option

incremental model

managers take small, short-term steps to alleviate a problem

Decision Making Style: analytical

manages can tolerate a greater degree of uncertainty and like to tackle new challenges; like to use logic and problem solving; + careful analysis; - not time efficient

intuition model

making a choice without the use of conscious thought or logical interference; sources stem from expertise and feelings

risk-propensity

willingness to gamble or to undertake risk for the possibility of gaining an increased payoff

disadvantages of group decision making

-time consuming -may be dominated by one or more group members -subject to social pressure -group think -goal displacement -have ambiguous decision responsibility -may compromise decisions

When can a group help in decision making?

1) when it can increase quality 2) when it can increase acceptance 3) when it can increase development 4. common knowledge amongst group members 5. used on a selective basis

Steps in the decision making process

1. identifying the problem 2. generating alternative courses of action 3. evaluating the alternatives 4. selecting the best alternative 5. implementing the decision 6. evaluating the decision

Bill has been a manager for 14 years. He has seen many different situations with his employees. He often makes decisions without really thinking about them. This is called

Intuition

Which of the following statements about group decision making is true?

Managers should utilize groups for decision making on a selective basis.

Computer-aided decision making: chauffeur-driven systems

ask participants to answer predetermined questions on electronic keypads or dials

non-rational models of decision making

assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decision

Decision Making Style: directive

dislike uncertainty & desire power; base decisions on facts and results; limited information; + speed efficient; - inflexibility and difficult connecting with subordinates

classical/rational model of decision making (classical model)

explains how managers should make decisions - attempts to maximize rewards - uses facts and all info avail. - clearly defined issues -uses the best techniques for objective decisions

Decision Making Style: behavioral

good communicators and desire to help employees progress in careers; + low turnover and more satisfied customers; - inability to be firm with employees and make difficult decisions

Computer-aided decision making: group-driven systems

involves a meeting within a room of participants who express their ideas anonymously on a computer network

nominal group technique

involves the use of a highly structured meeting agenda and restricts discussion and interpersonal communication during the decision making process

Decision Making Style: conceptual

managers are skilled at developing new solutions and relying on intuition; + take company in new direction; - longer time to make decisions, jump from idea to idea

consensus

occurs when members are able to express their opinions and reach agreement to support the final decision

Which of the following characteristics of groups may lead to groupthink?

overconfidence

decision making

process of choosing among alternative courses of action to resolve a problem

decision-making style

reflects the combination of how an individual perceives and responds to information; value oriented and tolerance for ambiguity

brainstorming

technique in which group members spontaneously suggest ideas to solve a problem

Anders has assembled a task force that is composed of people who don't know each other well. He should expect this group to make better decisions if

the member have common knowledge