What is Decision Making? Section 8.1

What You’ll Learn The two basic ways to make decisions. The six steps to rational decision making. How corporate culture influences decision making. Two value systems that play a part in decision making. The principles of team decision making. The five types of management decision styles.

Quick Activity You have two minutes to write down the steps you took this morning when deciding what to wear today Does the way you make this simple decision reflect how you make important decisions as well?

Different Ways to Make Decisions Intuitive Decision Making—making decisions based on intuition or hunches. Rational Decision Making—making decisions based on factual information and logical reasoning.

Critical Thinking Question Is rational decision making better than intuitive decision making? Why or why not? “Intuitive” is better when there is little time and the decision maker is experienced “Rational” is better when there is more time and good information is available

Six Basic Steps to Rational Decision Making Recognizing the need for a decision Determining how to go about making a decision Gathering information to help make a decision Identifying possible alternatives Evaluating each alternative Selecting the best alternative

What Factors Influence Your Decisions?

Factors Influencing Decisions Risk in Decision Making Chance it is the wrong choice. Be informed The Importance of Timing Too long and not long enough The Role of Values Understand the values of your company, employees and yourself Participation in Decision Making Always better to make decisions as a team

Positive Aspects of Group Decision Making The sum total of the group’s knowledge is greater. Wider range of alternatives. The group possesses a wider range of alternatives in the decision process Participation in the decision-making process increases the acceptance of the decisions. Group members better understand the decision and the alternatives considered.

Negative Aspects of Group Decision Making One individual may dominate and/or control the group. Social pressures to conform can inhibit group members. Competition can develop to such an extent that winning becomes more important than the issue itself. Groups have a tendency to accept the first potentially positive solution while giving little attention to other possible solutions.

Types of Management Decision Styles Autocratic Semi-autocratic Leading Collaborative Accommodating Use pgs 188 -189 to summarize each type.

Activity Answer: Which type of management decision style do you think is best? Why? Which type of leader do you feel you are? Why?

Block Activity Work in teams of 2 or 3 to create a scenario for each type of management decision styles for a manager who must decide about adding a new product line before the holiday rush. Record each scenario

Assessment P.190 Fact & Idea Review #1-6 Critical Thinking #1 and 2 Case Analysis