Presentation on theme: "St. Francis Xavier University BSAD 102 Making Decisions."— Presentation transcript:
St. Francis Xavier University BSAD 102 Making Decisions
Decisions St. Francis Xavier University “A decision is the action an executive must take when s/he has information so incomplete that the answer does not suggest itself.” Arthur William Radford, February 27, 1896 – August 17, 1973, US Navy Admiral, Commander-in-Chief of the US Pacific Command, and Chairman of the Joint Chiefs of Staff.
Objectives and Overview St. Francis Xavier University To introduce and develop a significant concept for this course and your work as a manager What is decision-making? Decision-making skills (Ch 6) Organization Theory (Ch 7) Leadership Theory (Ch 9) Decision-making Constraints Decision-making and Mike’s Bikes
What is decision-making? St. Francis Xavier University A decision is a “conclusion or resolution reached after consideration” (Oxford). Decision theory is the “study of strategies for optimal decision-making between options involving different risks or expectations of gain or loss…” (Oxford) Decisions (may) involve: Situations of uncertainty (imperfect inputs, constraints) Reflection process Choice Authority/Power Individual/Group Outcomes (gain, loss) Commitment (action, resources)
Decision-making Activity St. Francis Xavier University Winter survival situation (see handout) In groups of five you must make the following decisions: What will your group do? Rank the items according to importance (most important = 1; least important = 12) How did you make your decision? Selected group decisions? Expert recommendations
Decision-making St. Francis Xavier University Decision-making skills (Ch 6) Define the problem, gather facts, and identify alternative solutions Evaluate each alternative and select the best one Generate Options Develop Decision Criteria Evaluate Alternatives Implement the chosen alternative, periodically following up and evaluating the effectiveness of that choice Specific, action-oriented statements Action Plan Evaluate Implementation
Organization Theory (Ch 7) St. Francis Xavier University Organizational Structure Departmentalization – Functional? Organizational Hierarchy Distributing Authority (Does authority lie with group or individual?) Line – authority flows in a direct chain of command Staff – authority is based on expertise Team – authority goes beyond the individual authority possessed by each of its members Manifested through vote, consensus or individual prerogative?
Leadership Theory (Ch 9) St. Francis Xavier University What types of leader? Patterns of behaviour that a manager exhibits in dealing with subordinates – see p. 272 Autocratic – “do this” – managers generally issue orders and expect them to be obeyed without question (good for rapid decisions or based on expertise) Democratic – “what should we do?” – managers generally request input from subordinates before making decisions but retain final decision- making power (good for consensus building, sense of contribution and “ownership”) Laissez-Faire – “do what you think is best” – managers typically serve as advisors to subordinates who are allowed to make decisions; employees may accomplish goals by the means they see fit (good for groups of widely-held expertise and sense of ownership)
Decision-making Constraints St. Francis Xavier University Time (external and internal reality) Resources People (quantity, quality) Money (access and amount) Information (quality, missing information, assumptions) Organizational/group dynamics (power, culture, personalities and conflict) Strategy
Conclusion St. Francis Xavier University Decisions (may) involve: Situations of uncertainty (imperfect inputs, constraints) Reflection process Choice Authority/Power Individual/Group Outcomes (gain, loss) Commitment (action, resources)
Mike’s Bikes Decision-Making St. Francis Xavier University What is your group’s approach to making decisions? Decision-making skills (slide 7) Define the problem, gather facts, and identify alternative solutions Evaluate each alternative and select the best one Implement the chosen alternative Organization and distribution of authority (slide 8) Organizational Structure: Functional? Organizational Hierarchy: Does authority lie with group or individual? Line – authority flows in a direct chain of command Staff – authority is based on expertise Team – authority goes beyond the individual authority possessed by each of its members Manifested through vote, consensus or individual prerogative? Leadership style (slide 9) – autocratic, democratic, laissez-faire? What are the relevant decision-making constraints?
Administrivia St. Francis Xavier University Midterms Wednesday’s class