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