11
Chapter



Models of Decision Making
Dynamics of Decision
Making
Group Decision Making
Individual and
Group Decision
Making
11-2
Models of Decision Making

Rational Model logical four-
step approach to decision making
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


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Identifying the problem
Generating alternative
solutions
Selecting solution
Implementing and
evaluating the solution
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11-4
Simon’s Normative Model of Decision Making


Based on premise that decision making is not rational
Decision making is characterized by
 Limited information processing
 Use of judgmental heuristic
 Satisficing
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11-6
Decision Making Styles
High
Low
Analytical
Conceptual
Directive
Behavioral
Tasks and Technical
Concerns
Figure 11-2
People and Social
Concerns
Value Orientation
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11-7
Escalation of Commitment
Figure 11-3
Psychological and Social
Determinants
* Ego defense
* Individual motivators
* Peer pressure
* Saving face
Organizational Determinants
* Breakdown in communication
* Politics
* Organizational inertia
Escalation
of
commitment
Poor results
or
outcomes
Project Characteristics
* A delayed return on the investment
* Setbacks attributed to temporary
causes
Contextual Determinants
* External political pressure
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11-9
Requirements for Effective Group Decision
Making
1)
2)
3)
4)
Developing a clear understanding of the decision
situation
Developing a clear understanding of the requirements
for an affective choice
Thoroughly and accurately assessing the positive
qualities of alternative solutions
Thoroughly and accurately assessing the negative
qualities of alternative solutions
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Advantages and Disadvantages of
Group-Aided Decision Making
Advantages
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Greater pool of knowledge
Different perspectives
Greater comprehension
Increased acceptance
Training ground
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11-11
Table 11-2
Disadvantages
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Social pressure
Domination by a vocal few
Logrolling
Goal displacement
“Groupthink”
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11-12
Participative Management

Participative Management
the process whereby employees
play a direct role in:
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


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Setting goals
Making decisions
Solving problems
Making changes in the
organization
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11-13
Group Problem Solving Techniques

Consensus presenting
opinions and gaining
agreement to support a
decision

Brainstorming process to
generate a quantity of ideas

Nominal Group Technique
process to generate ideas and
evaluate solutions

Delphi Technique process
to generate ideas from
physically dispersed experts

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Computer-Aided Decision
Making
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11-15
Creativity

Creativity process of developing
something new or unique
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11-16
Figure 11-4
Stages of the Creativity Process
Preparation
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Concentration
Incubation
Illumination
Verification
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