1. © 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

2. 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.

3. 10-3 Models of Decision Making Decision making  identifying and choosing solutions that lead to a desired state of affairs

4. 10-4 Models of Decision Making The Rational Model  proposes that managers use a logical four-step approach to decision making.

5. 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

6. 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

7. 10-7 A Model of Evidence-Based Decision Making (EBDM)

8. 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

9. 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. 10-10 Decision Making Styles

11. 10-11 A Model of Intuition

12. 10-12 Creativity  process of using intelligence, imagination, and skill to develop a new or novel product, object, process, or thought

13. 10-13 An Ethical Decision Tree

14. 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

15. 10-15 Advantages and Disadvantages of Group-Aided Decision Making