Decision
making &
problem solving
by: Hayaa Nafa
Supervised by: Dr. Fatamah Baddar
Ph.D.,M.Sc.N.,B.Sc.N Associate Prof. Nursing
Adminstration &Education Dept.
Outlines
- Introduction
- What is decision making ?
- Decision making situation.
- Problem solving
- Relationship between decision making and problem solving
- Types of decisions
- Level of decision
- Factors affecting decision making
- Decision making process
- Decision making models
- Decision making techniques
- Problem solving methods
- Problem solving steps
- Critical elements in decision making and problem solving
- Individual variations in decision making
-Decision making in organizations
-How to improve decision making
- Summary
Introduction
o
To cope with the realities of today’s health care system, nurses
must be prepared to be critical thinkers. They must also be ready to
welcome change and thrive in rapidly changing environments.
o
Decision making is often thought to be synonymous‫ مرادف‬with
management and is one of the criteria on which management
expertise is judged. Much of any manager’s time is spent critically
examining issues, solving problems, and making decisions. It is the
authors’ belief that problem solving, decision making, and critical
thinking are learned skills that improve with practice. So that the
processes can be consistently replicated, these learned skills rely
heavily on established tools, techniques, and strategies.
Decision making
Decision making is a complex, cognitive process often defined
as choosing a particular course of action. Webster’s
definition—to “judge or settle”—is another view of decision
making.
OR
a systematic cognitive process in which there must be an
identification of alternatives.
Decision making situation
Decision making situation: The situation in which decisions are made.
It may be personal, clinical, or organizational.
Personal decision making: is a familiar part of everyday life.
Clinical decision making: relates to quality of care and
competency issues.
Organizational decision making: is choosing options directed
toward the resolution of organizational problems and the
achievement of organizational goals.
What is the difference
between decision making and
decision taking?
Decision taking
Decision taking
Judgments selected from two or more alternatives, it is final step
of decision making.
Problem solving:
- is part of decision making. A systematic process that
focuses on analyzing a difficult situation, problem solving
always includes a decision-making step
OR
- is a process whereby a dilemma is identified and
corrected.
Problem : - A present unsatisfactory state that needs to be
changed to a desired state as soon as possible
OR
- Some deviation from the expected standard which
prevent the achievement of objectives.
Many educators use the terms problem solving and decision
making synonymously, but there is a small important
difference between the two. Although decision making is the
last step in the problem solving process, it is possible for
decision making to occur without the full analysis required in
problem solving. Because problem solving attempts to
identify the root problem in situations, much time and
energy are spent on identifying the real problem.
Relationship between decision
making and problem solving
Decision making and problem solving used inconsistently
or interchangeably.
The two process appear similar and may in some
instances depend on one another, they are not
synonymous.
The main distinctions between the two are that
decision making may or may not involve a problem, but it
involves selection of alternatives.
Whereas problem solving involves diagnosis a problem
and solving it, which may or may not entail deciding on
one correct solution.
Most of the time, decision making is a subset of
problem solving.
Types of decisions
There are THREE main types of decision that the nurse
manager can experience in different situations, namely:
routine, adaptive, and innovative decisions.
A- Routine decisions:
is the decision made when problems are relatively well
defined and common and when established rules, policies,
and procedures can be used to solve them. e.g. shortage
of nursing staff
B- Adaptive decisions:
is the decision made when problems and alternative
solutions are somewhat unusual and only partially
understood. e.g. changing working time pattern or
methods of assignment
C- Innovative decisions:
is the decision made when problems are unusual and unclear
and creative solutions are necessary. e.g. increase
infection rate to 50% among surgical patients
Levels of decisions
Levels of decisions
Strategic
Administrative
Operational
Levels of decisions
1. Strategic decisions:Decisions made by the top executives that a crucial to
operations or long-range planning
Are strategic because they define and focus on major,
long-term goals.
2. Administrative decisions middle managers make most
administrative decisions. They resolve unusual problems
and develop techniques to improve functioning
Levels of decisions
3. Operational decisions: these are the routine decisions
that relate to day-to- day events. Middle and first line
managers make most of the operational decisions
Factors affecting decision making
1- experience and knowledge .
2- creating thinking.
3- self concept.
4- stress
5- interpersonal conflict
6- time available. , money, energy
The factors affecting decision making:
7-Routine versus non routine decision.
8-Risk associated with the decision.
9-Critical nature of work.
10-Written guidelines.
11-Organization attitude toward decision
making.
12-Amount and kind of information
available.
The factors affecting decision making:
13-Degree of acceptance and support.
14-Manegers personal ability.
Decision making process
Characteristics of effective decision making process:
•
•
•
•
Conducted in a systematic, comprehensive way of
thinking.
The consequences of the implemented decision are
determined.
Results in positive outcomes and fewer negative
consequences.
Based on a "Goal-oriented" analysis of the situation,
its problems, and their alternative solutions.
Decision making process
Decision making process
1) Defining the problem:
You may need to state the problem in broad terms since the
exact problem may not be obvious.( Increase Medication
errors)
you may lack information to define it
you can confuse symptoms with underlying causes
Prepare a statement of the problem and find someone you
trust to review it and to talk it over. If the problem is a
job situation, review it with your supervisor or the
appropriate committee or resource.
2- Gather Information: from where!!!
Stakeholders:
”Individuals, groups, organizations that are affected by the
problem or its solution”.
Facts & data
- Research.
- Results from experimentation and studies.
- Interviews of "experts" and trusted sources.
- Observed events, past or present, either personally
observed .
Boundaries
The boundaries or constraints of the situation are difficult to
change.
Opinions and Assumptions
Opinions of decision makers, committees or groups, or other
powerful groups will be important to the success of your
decision. It is important to recognize truth, bias, or prejudice
in the opinion.
3) Develop Alternatives
Look at the problems in different ways; find
a new perspective that hasn’t thought of
before. Once you have listed or mapped
alternatives, be open to their
possibilities. Make notes on those that:
Need more information.
Are new solutions.
Can be combined or eliminated.
Will meet opposition.
Seem promising or exciting.
4) Weigh Alternatives
After listing possible alternatives, evaluate them without
prejudice, no matter how appealing or distasteful
Consider all criteria while a suitable solution may solve
the problem, it may not work if resources aren't
available, if people won't accept it, or if it causes new
problems
5. Select the best alternative
Don't consider any alternative as "perfect solution." If there
were, there probably wouldn't be a problem in the first place
Consider your intuition, or inner feelings in deciding on a
course of action
Return to a trusted outsider: Is there something you missed?
Does he/she see a problem with your solution?
Compromise when you have a full grasp of the problem, and
your alternatives
Techniques in weighing alternatives:
1-Thomas Saaty's Analytical Hierarchy Matrix:
List alternatives in columns and rows as depicted in the
matrix above. Starting with Alternative A, go across
columns in the matrix and rate each alternative against
all the others.
When the alternative under consideration has more value
than the others.
Then give the more valuable alternative a score of 1
When the alternative has less value than the others.
Then give the less valuable alternative a score of 0
1-Thomas Saaty's Analytical Hierarchy
Matrix:
Add the scores for each row/alternative;
highest score is the highest rated
alternative according to the criteria you
used. In the matrix above, Alternative C
scores highest, so it's the highest rated
alternative.
2- SFF Matrix: Suitability, Feasibility & Flexibility:
Suitability Feasibility Flexibility
Alternative A
Alternative B
Alternative C
Alternative D
Total
A-Suitability: refers to
the alternative itself, whether it is ethical or practical. Is it
appropriate in scale or importance? An adequate
response? Too extreme?
B-Feasibility: refers to
how many resources will be needed to solve the problem
(i.e. Is it affordable?)
How likely will it solve the problem?
C-Flexibility: refers to
your ability to respond to unintended consequences, or
openness to new possibilities? The alternative itself
and whether you can control outcomes once you begin.
Total a score for each alternative, compare, prioritize your
alternatives...
6) Implement the solution
until the solution is acted on, a decision is only a good
intention.
Develop a plan for implementation. Its elements
include:
 Step-by-step process or actions for solving
the problem.
 Communications strategy for notifying
stakeholders.
 Where important or necessary, inform
those who care for you and/or will be
affected by the change. Prepare them as
necessary about your decision.
 Resource identification/allocation.
 Timeline for implementation
7) Monitor progress
if results are not what you expect, review your options
and alternatives
Whether or not you achieved your goals, it is important
to consider what you have learned from your
experience: about yourself, about what you consider
important.
Lastly, if you have done your best, you have this as one
measure of success.
How to improve decision making
1- interpret data in more than one way.
2- set criteria of success beforehand .
3- ask other people
4- lest your failure
5- improve feedback by avoid missing and confuse
6- scrutinize the decision making process
7- Change your way of deciding and reevaluate your time,
and learning from experience
8- have group do decisions audits too.
9- be rational.
How to improve decision making?
10 Educate people so they know how to make appropriate
decision.
11.Seeking support of top management for decision
making at the lowest possible level, (e.g
decentralization)
12.Successful manager stay informed about decision being
made at different levels of the organization after
appropriately delegating these responsibilities.
13.The managers should deal only with these decisions
requiring their level of expertise (non routine decisions),
support implementation of decisions, and credit the
decision maker.
14.Delegation of decision making (routine decision making)
to subordinates to gain their trust, loyalty and to raise
their self-esteem.
15.Successful manager who is skilled in both decision
making and problem
solving serves as a
motivator and role model for others
Traditional Problem-Solving Process
The traditional problem-solving model is widely used and is
perhaps the most well known of the various models. The seven
steps follow. (Decision-making occurs at step 5.)
1. Identify the problem.
2. Gather data to analyze the causes and consequences of the
problem.
3. Explore alternative solutions.
4. Evaluate the alternatives.
5. Select the appropriate solution.
6. Implement the solution.
7. Evaluate the results.
Traditional Problem-Solving Process
Although the traditional problem-solving process is an effective
model, its weakness lies in :
1. the amount of time needed for proper implementation. This
process, therefore, is less effective when time constraints are a
consideration.
2. lack of an initial objective-setting step. Setting a decision goal
helps to prevent the decision maker from becoming sidetracked.
The Managerial Decision-Making Process
The managerial decision-making model, a modified traditional
model, eliminates the weakness of the traditional model by
adding a goal-setting step. Harrison (1981) has delineated the
following steps in the managerial decision-making process:
1. Set objectives.
2. Search for alternatives.
3. Evaluate alternatives.
4. Choose.
5. Implement.
6. Follow up and control.
The Managerial Decision-Making Process
The managerial decision-making process flows in much the same
manner as the nursing process.
Decision-Making Process
Nursing process
Identify the decision
assess
Collect data
Identify criteria for
decision
plan
Identify alternatives
Choose alternative
implement
Implement alternative
Evaluate steps in decision
evaluate
The nursing process
As a decision-making model, the nursing process has a
strength that the previous two models lack, namely its
feedback mechanism. It shows constant input into the
process. When the decision point has been identified, initial
decision-making occurs and continues throughout the process
by using a feedback mechanism. Although the process was
designed for nursing practice with regard to patient care and
nursing accountability, it can easily be adapted as a
theoretical model for solving leadership and management
problems.
The nursing process
The weakness of the nursing process, like the traditional
problem-solving model, is in not requiring clearly stated
objectives. Goals should be clearly stated in the planning
phase of the process, but this step is frequently omitted or
obscured.
However, because nurses are familiar with this process and
its proven effectiveness, it continues to be recommended as
an adapted theoretical process for leadership and managerial
decision making.
Intuitive Decision-Making Model
• Romiszowski (1981) built on the nursing process in creating
the intuitive decision making Model, In this model, the
decision maker consciously incorporates recall or cumulative
knowledge that comes from education, both formal and
informal, as well as experience, in planning the decision.
Inexperienced or novice decision makers spend more time in
the assessment, recall, and planning phases, whereas
experienced decision makers gather information, recall, and
often leap directly to Implementation.
• “leap” from information gathering to implementation may
be the greatest weakness of this model. In discussing
intuitive decision making.
• Add MORAL &
Morphy Models of
decision making
Decision making techniques
Decision making techniques vary according to the nature
of the problem or topic, decision maker, situation, and
decision making method or process.
Nurses are using tools such as cause- and- effect
diagrams, flow charts, Pareto charts, run charts,
histograms, control charts, and scatter diagrams to help
understand facts and relationships in processes they are
examining.
Decision making techniques
1. Group decision making:
A number of studies have shown that professional people
do not function well under micromanagement.
Group problem solving casts the manager in the role of
facilitators and consultant.
Compare to individual decision making , group can provide
more input and better decision.
Decision making techniques
2. Nominal group technique (NGT)
-It is eliciting written questions, ideas, and reactions from
group members.
Consists of :
-Silently generating ideas in written.
-Round-robin presentation by group members of their ideas
on a flip chart.
-Discussing each recorded idea and evaluate.
-Voting individually on priority ideas, with group solution
being derived mathematically through rank ordering.
Decision making techniques
3. Delphi technique
It is judgments on a particular topic are systematically gathered
from participants who do not meet face to face.
Useful when expert opinions are needed .
Decision making techniques
4. Statistical aggregation:
Individuals are polled(‫( قرعة‬regarding a specific problem and
their responses are tallied .
like Delphi technique , does not require a group meeting.
no opportunity for group members to strength their
interpersonal tie or interaction.
Decision making techniques
5. Brainstorming
The idea generating technique wherein a Group members meet and
generate diverse ideas about the nature, cause , definition, or
solution to a problem without regard to questions of feasibility or
practicality. Through this technique, individuals are encouraged to
identify a wide range of ideas. Usually, one individual is assigned to
record the ideas on a chalkboard. Brainstorming may be used at any
stage of the decision- making process, but it is most effective at
the beginning, once a problem has been stated.
Decision making techniques
Brainstorming is most effective for simple, well-defined
problems. It encourages enthusiasm and competitiveness
among group members in generating ideas. It also
prevents group members from feeling hopeless about the
range of possibilities in a given situation. Two methods
are more frequently used.
First: is the structured method (known as the roundrobin) where each, member is asked to put forward an
idea.
Decision making techniques
The other technique: is unstructured and is known as
free-wheeling, in which ideas are produced and expressed
by anyone at any time.
It is enjoyable but are often unsuccessful because
members being to critique ideas.
Decision making techniques
6. fishbone diagram (causes and effect)
Is drawn after a brainstorming session, the central
problem is visualized as the head of the fish, with the
skeleton divided into branches showing contributing
causes of different parts of the problem.
Fishbone diagram (Cause and effect)
Resources
and facilities
shortage of physical plant
space
lack of availability of ground ambulance transportation
limited resources of ED in the form of medical
Lack of supplies and medications
Unavailability of operating room time
Ancillary services not same hours as ED
No system available for supervising &evaluating work
Lack of availability of 24-hour laboratory tests
Increased medical records documentation requirements
Increase length of stay due to waiting for test
Delay in the services provided by radiology, lab.
and ancillary services
Delay in treatment and prolonged patient stay in
ED
Work system
ED Overcrowding
7. Thomas Saaty's Analytical
Hierarchy Matrix
Decision making techniques vary according to the nature of the
problem or topic, decision maker, situation, and decision making
method or process.
Thomas Saaty's Analytical Hierarchy
Matrix
List alternatives in columns and rows as depicted in the
matrix above. Starting with Alternative A, go across
columns in the matrix and rate each alternative against all
the others.
When the alternative under consideration has more value
than the others,
Then give the more valuable alternative a score of When
the alternative has less value than the others.
Then give the less valuable alternative a score of Add the
scores for each row/alternative; highest score is the
highest rated alternative according to the criteria you
used. In the matrix above, Alternative C scores highest,
so it's the highest rated alternative.
Decision making techniques
8. Pareto Analysis



Selecting the Most Important Changes To Make.
It uses the Pareto principle - the idea that by doing 20%
of work you can generate 80% of the advantage of doing
the entire job
is a formal technique for finding the changes that will give
the biggest benefits.
How to use tool:
1.
2.
3.
write out a list of the changes you could make
Then score the items or groups.
The first change to tackle is the one that has the highest
score
Decision making techniques
9. Paired Comparison Analysis Working Out the Relative
Importance of Different Options.
helps you to work out the importance of a number of options
relative to each other. It is particularly useful where you do not have
objective data to base this on.
easy to choose the most important problem to solve, or select the
solution that will give you the greatest advantage .
How to use tool:
list your options. Then draw up a grid with each option as both a row
and a column header.
use this grid to compare each option with each other option
decide which of the two options is most important
Decision making techniques
10. PMI ('Plus/Minus/Implications' )
Weighing the Pros and Cons of a Decision.
How to use :
focused on selecting a course of action from a range of options.
check that it is going to improve the situation
draw up a table headed up with: 'Plus', 'Minus',
In the column underneath 'Plus', write down all the positive
results of taking the action. Underneath 'Minus' write down all
the negative effects. In the 'Implications' column write down
the implications and possible outcomes of taking the action,
whether positive or negative.
Decision making techniques
11. Six thinking hats
Looking at a Decision from All Points of View
It is used to look at decisions from a number of important
perspectives. This forces you to move outside your habitual
thinking style, and helps you to get a more rounded view of a
situation.
'6 Thinking Hats‘
How to the Tool:
Each 'Thinking Hat' is a different style of thinking.
Decision making techniques
White Hat:
With this thinking hat you focus on the data available.
Look at the information you have, and see what you can
learn from it.
Red Hat:
you look at problems using intuition, gut reaction, and
emotion .
Try to understand the responses of people who do not
fully know your reasoning.
Black Hat:
look at all the bad points of the decision .
Decision making techniques
Yellow Hat:
The yellow hat helps you to think positively. It is the
optimistic viewpoint that helps you to see all the benefits
of the decision and the value in it
Green Hat:
The Green Hat stands for creativity. This is where you
can develop creative solutions to a problem
Blue Hat:
The Blue Hat stands for process control. This is the hat
worn by people chairing meetings. When running into
difficulties because ideas are running dry, they may
direct activity into Green Hat thinking. When contingency
plans are needed, they will ask for Black Hat thinking,
Decision making techniques
12. Decision grid:
A decision making process grid is a matrix for comparing
multiple options when there are also several criteria to consider.
It has many names, including Pugh matrix, solution matrix,
decision making matrix, decision grid, problem selection grid.
It is a rational model and is also classed as a visual decision tool.
When the complexity of the decision increases these decision
making tools and techniques can prove useful. Especially as the
number of options and criteria increase.
Example
Problem solving
Problem solving methods:
Trial-and-error method :one solution after another is
tried until the problem is solved or appears to be
improving.
Experimentation: a theory is tested to enhance
knowledge, understanding , or prediction.
Affinity map : a tool used to identify problems.
Steps in problem solving
1- define the problem
2- gather information
3- analyze the information
4- develop solutions
5- Make a decision
6- implement the decision
7- evaluate the solution
CRITICAL ELEMENTS IN PROBLEM SOLVING AND
DECISION MAKING
1. Define Objectives Clearly :
• If a decision lacks a clear objective or if an objective is
not consistent with the individual’s or organization’s stated
philosophy, a poor-quality decision is likely. Sometimes the
problem has been identified
but the wrong objectives are set. Problems can be
extremely complex and may need multiple objectives
(Clancy, 2003).
CRITICAL ELEMENTS IN PROBLEM SOLVING AND
DECISION MAKING
2. Gather Data Carefully:
Because decisions are based on knowledge and information
available to the problem solver at the time the decision
must be made, one must learn how to process and obtain
accurate information. The acquisition of information
begins with identifying
the problem or the occasion for the decision and continues
throughout the problem-solving process.
CRITICAL ELEMENTS IN PROBLEM SOLVING AND
DECISION MAKING
Questions that should be examined in data gathering are:
1. What is the setting?
2. What is the problem?
3. Where is it a problem?
4. When is it a problem?
5. Who is affected by the problem?
6. Is this your problem or someone else’s problem?
7. What is happening?
8. Why is it happening? What are the causes of the problem? Can
the causes be prioritized?
9. What are the basic underlying issues? What are the areas of
conflict?
10. What are the consequences of the problem? Which is the most
serious?
CRITICAL ELEMENTS IN PROBLEM SOLVING AND
DECISION MAKING
3. Generate Many Alternatives :
- When seeking alternatives, individuals need to expand their
horizons; the most common trap managers fall into is limiting the
borders of their decision frames.
- Because everyone thinks uniquely, increasing the number of
people working on a problem increases the number of alternatives
that can be generated.
- Brainstorming is another frequently used technique. The goal in
brainstorming
is to think of all possible alternatives
CRITICAL ELEMENTS IN PROBLEM SOLVING AND
DECISION MAKING
4. Think Logically :
People think illogically primarily in three ways.
1. Overgeneralizing. This type of “crooked” thinking occurs when one
believes that because A has a particular characteristic, every other A
also has the same characteristic. An example of this thinking is when
stereotypical statements are used to justify arguments and decisions.
2. Affirming the consequences. In this type of illogical thinking, one
decides that if B is good but he or she is doing A, then A must not be
good. For example, if a new method is heralded as the best way to
perform a nursing procedure and the nurses on your unit are not using
that technique, it is illogical to assume that the technique currently
used in your unit is wrong or bad.
CRITICAL ELEMENTS IN PROBLEM SOLVING AND
DECISION MAKING
3. Arguing from analogy. This thinking applies a component that is
present in two separate concepts and then states that because A is
present in B, then A and B are alike in all respects. An example of this
would be to argue that because intuition plays a part in clinical and
managerial nursing, then any characteristic present in a good clinical
nurse also should be present in a good nurse–manager. However, this is
not necessarily true; a good nurse– manager does not necessarily
possess all the same skills as a good nurse– clinician.
CRITICAL ELEMENTS IN PROBLEM SOLVING AND
DECISION MAKING
5. Choose and Act Decisively :
Individuals may become vulnerable at this last point in the
problem-solving process and choose to delay acting because
they lack the courage to face the consequences of their
choices. For example, if managers granted all employees’
requests for days off, they would have to accept the
consequences of their decision by dealing with short
staffing.
INDIVIDUAL VARIATIONS IN DECISION MAKING
Because everyone has different values and life experiences,
and each person perceives and thinks differently, different
decisions may be made given the same set of circumstances. No
discussion of decision making would, therefore, be complete
without a careful examination of the role of the individual in
decision making
INDIVIDUAL VARIATIONS IN DECISION MAKING
• Values
• Life experience
• Individual preference
• Individual ways of thinking and decision making
INDIVIDUAL VARIATIONS IN DECISION MAKING
1. values:
Individual decisions are based on each person’s value system.No
matter how objective the criteria, value judgments will always play a
part in a person’s decision making, either consciously or
subconsciously. The alternatives generated and the final choice
selected are limited by each person’s value system.
Because values also influence perceptions, they invariably influence
information gathering, information processing, and final outcome
INDIVIDUAL VARIATIONS IN DECISION MAKING
2. Life Experience:
Each person brings to the decision-making task past experiences that
include education and decision-making experience. The more mature
the person and the broader his or her background, the more
alternatives he or she can identify.
3. Individual Preference:
With all the alternatives a person considers in decision making, one
alternative may be preferred over another. The decision maker, for
example, may see certain choices as involving greater personal risk
than others and therefore may choose the safer alternative. Physical,
economic, and emotional risks, and time and energy expenditures, are
types of personal risk and costs involved in decision making.
INDIVIDUAL VARIATIONS IN DECISION MAKING
4. Individual Ways of Thinking and Decision Making :
Our way of evaluating information and alternatives on which we base our
final decision constitutes a thinking skill. Individuals think differently.
Some think systematically—and are often called analytical thinkers—
whereas others think intuitively. It is believed that most people have
either right- or left-brain hemisphere dominance.
Some feel that there is a gender difference in how we think and behave.
Rudan’s research (2003) looked at how male and female leaders behaved
differently and noted that males and females socialized and
communicated differently; males paid much less attention to
relationships and resisted being influenced. These differences have the
potential to effect decision making.
OVERCOMING INDIVIDUAL VULNERABILITY I
DECISION MAKING
1. Values :
Overcoming a lack of self-awareness through values
clarification decreases confusion. People who understand their
personal
beliefs and feelings will have a conscious awareness of the values on
which their decisions are based.
2. Life experience:
a person can do some things to decrease this area of vulnerability:
-use available resources, including current research and literature, to
gain a fuller understanding of the issues involved.
-involve other people, such as experienced colleagues, trusted
friends, or superiors, to act as sounding boards and advisors.
- analyze decisions later to assess their success.
OVERCOMING INDIVIDUAL VULNERABILITY IN
DECISION MAKING
3. Individual Preference :
Overcoming this area of vulnerability involves self-awareness, honesty,
and risk taking.
4. Individual Ways of Thinking :
People who make decisions alone are frequently handicapped because
they are not able to understand problems fully or make decisions from
both an analytical and intuitive perspective. However, in most
organizations, both types of thinkers may be found. Using group
process, talking management problems over with others, and developing
whole-brain thinking also are methods for ensuring that both intuitive
and analytical approaches will be used in solving problems and making
decisions. Use of heterogeneous rather than homogeneous groups will
usually result in better-quality decision making
DECISION MAKING IN ORGANIZATIONS
Since organizations are made up of people with differing values and
preferences, there is often conflict in organizational decision
dynamics.
1. Effect of Organizational Power on Decision Making
Powerful people in organizations are more apt to have decisions
made (by themselves or their subordinates) that are congruent with
their own preferences and values. On the other hand, people
wielding little power in organizations must always consider the
preference of the powerful when they make management decisions.
Power is frequently part of the decision factor (Good, 2003). In
organizations choice is constructed and constrained by many
factors, and therefore choice is not equally available to all people.
DECISION MAKING IN ORGANIZATIONS
2. Rational and Administrative Decision Making
most managerial decisions were based on a careful, scientific, and
objective thought process and managers made decisions in a
rational manner. In the late 1940s, Herbert A. Simon’s classic
work revealed that most managers made many decisions that did
not fit the objective rationality theory. Simon (1965) delineated
two types of management decision makers: the economic man and
the administrative man.
Comparing the Economic Man with the
Administrative Man
Economic
Administrative
Makes decisions in a very rational
manner
Makes decisions that are good
enough.
Has complete knowledge of the
problem or decision situation.
Because complete knowledge is not
possible, knowledge is always
fragmented.
Has a complete list of possible
alternatives.
Because consequences of
alternatives occur in the future,
they are impossible to predict
accurately.
Has a rational system of ordering
preference of alternatives.
Usually chooses from among a few
alternatives, not all possible ones.
Selects the decision that will
maximize utility function.
The final choice is “satisficing”
rather than maximizing.
Summary
The decision making process may employ several models:
rational or normative, descriptive or bounded rationality,
satisfying, and political.
Decision making techniques vary according to the problem and
the degree of risk and uncertainty in the situation.