2 Learning ObjectivesExplain the importance of decision-making skills in supervisory management.Describe the types of decisions made in organizations.Describe and apply the basic steps of the decision-making process.Explain why a supervisor should not make hasty decisions.
3 Decision MakingDecision making—process of defining problems and choosing a course of action from among alternatives
4 Types of DecisionsProgrammed decisions—solutions to repetitive and routine problems provided by existing policies, procedures, and rulesNon-programmed decisions—solutions to new or unusual problems that require adaptive problem-solving behaviour
5 Decision-Making Process 7. Follow Up and Appraise Results6. Select the “Best” Alternative5. Evaluate the Alternatives4. Develop AlternativesRedefine the Problem3. Establish Decision Criteria2. Analyze the Problem1. Define the Problem
6 Define the Problem What is the problem? How do you know there is a problem?Where has the problem occurred?When has the problem occurred?Who is involved in, or affected by the problem?
7 Analyze the Problem Assemble facts and pertinent information. Objectively weigh tangible factors, such as reputation, morale, discipline, and personal biases.Use a cause-and-effect diagram.
8 Establish Decision Criteria Determine standards or measures for evaluating alternatives.Determine which criteria are necessary.Determine their order of priority.
9 Sample Decision Criteria Work assignments completed on timeIncurs no financial costDoesn’t impede quality of servicePuts no job in jeopardyAllows differentiationHas no negative impactAlleviates problem within one week
10 Develop AlternativesConsider as many solutions as can be reasonably developed.Use brainstorming.Be creative.Use nominal group technique (NGT).Consider ethical implications.
11 BrainstormingBrainstorming — a free flow of ideas within a group, while suspending judgment, aimed at developing many alternate solutions to problems
12 BrainstormingNominal group techniques(NGT) — a group brainstorming and decision-making process by which individual members first identify alternative solutions privately and then share, evaluate, and decide on them as a group
13 Brainstorming Allow no criticism of ideas Seek many ideas Encourage free wheelingCombine, add on to, and rearrange ideas
14 Ethics in Decision Making Legal/compliance testPublic-knowledge testLong-term-consequences testExamine-your-motives testInner-voice test
15 Evaluate the Alternatives Try to foresee probable desirable and undesirable consequences of each alternative.Eliminate alternatives that don’t meet decision criteria and ethical standards.Evaluate how many of the most important criteria each alternative meets.
16 Select the Best Alternative Optimizing—selecting the alternative that seems bestSatisficing—selecting an alternative that meets minimal decision criteria
17 Select the Best Alternative Bases for choosing the best alternative:ExperienceIntuitionAdvice from othersExperimentationQuantitative decision making
18 Follow Up and Appraise the Results The task of decision making isn’t complete without some form of follow-up and action appraisal.When consequences are good, the decision was sound.When consequences are not as anticipated, the decision-making process starts all over again.
19 Tips for Decision Making Take timeSeek opinions and suggestionsGather ample factsStretch your mindUse objective criteriaAdmit and rectify errors
20 Impact of Time Take time to ask employees questions: How extensive is the problem? Does it need an immediate response?Who else is affected?What do you think the end result should be?What do you recommend? Why?