© 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Making Decisions Chapter Ten
10-2 After reading the material in this chapter, you should be able to: LO10.1 Compare and contrast the rational model of decision making, Simon’s normative model, and the garbage can model LO10.2 Review the eight decision-making biases. LO10.3 Discuss the thrust of evidence-based decision making and its implementation principles. LO10.4 Describe the model of decision-making styles, the role of intuition in decision-making and the stages of the creative process. LO10.5 Summarize the pros and cons of involving groups in the decision-making process. Lo10.6 Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making.
10-3 Models of Decision Making Decision making identifying and choosing solutions that lead to a desired state of affairs
10-4 Models of Decision Making The Rational Model proposes that managers use a logical four-step approach to decision making.
10-5 Nonrational Models of Decision Making Nonrational models Attempt to explain how decisions are actually made 1.Decision making is uncertain 2.Decision makers do not possess complete information 3.Difficult for managers to make optimal decisions
10-6 Evidence-Based Decision Making Evidence-based decision making (EBDM) represents a process of conscientiously using the best available data and evidence when making managerial decisions
10-7 A Model of Evidence-Based Decision Making (EBDM)
10-8 Seven Implementation Principles 1.Treat your organization as an unfinished prototype 2.No brag, just facts 3.See yourself and your organization as others do 4.Evidence-based management is not just for senior executives
10-9 Seven Implementation Principles (cont.) 5.Like everything else, you still need to sell it 6.If all else fails, slow the spread of bad practice 7.The best diagnostic question: what happens when people fail?
10-10 Decision Making Styles
10-11 A Model of Intuition
10-12 Creativity process of using intelligence, imagination, and skill to develop a new or novel product, object, process, or thought
10-13 An Ethical Decision Tree
10-14 Group Involvement Minority dissent extent to which group members feel comfortable disagreeing with other group members, and a group’s level of participation in decision making
10-15 Advantages and Disadvantages of Group-Aided Decision Making