1. What is Decision Making?
Section 8.1

2. 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.

3. 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?

4. 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.

5. 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

6. 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

7. What Factors Influence Your Decisions?

8. 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

9. 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.

10. 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.

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

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

13. 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

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