PRESENTATION BY ABHA SURI 1

Learning Outcomes – Decision Making Explain the satisfying model for

decision making Describe the workings of the implicit

favorite model for decision making Outline the maximizing or rational

decision making model Discuss the various group decision

techniques

PRESENTATION BY ABHA SURI 2

Decision-Making The key to making a decision is

to understand the problem.

PRESENTATION BY ABHA SURI 3

Three Models for Decision-Making

Satisficing Model Implicit Favorite Model Maximizing or Rational

Decision-Making Model

PRESENTATION BY ABHA SURI 4

The Satisficing Model

Expand onalternatives

Does alternativemeet satisficingCriteria?

Select firstalternative that meetscriteria and is considered“good enough”

Problemidentified

Problemsimplified

Satisficingcriteria set

Identifyalternatives

Comparealternativesone at a timeagainst criteria

YES

NO

PRESENTATION BY ABHA SURI 5

The Implicit Favorite Model

Need for adecision isdetermined

Select an implicit favoritealternative

Identifyotheralternatives

Establishcriteria tomatch implicitfavorite

Comparealternatives withimplicit favoritecriteria

Confirmimplicitfavorite

Selectimplicitfavorite1 2 3

4

5

PRESENTATION BY ABHA SURI 6

Problems

Situations in Life

Priority Problem

Causes for Problem

Most Likely Cause

Make A

Decision

Alternatives

1

2

3

4

5

6

Determining the need for a decision

PRESENTATION BY ABHA SURI 7

Six Steps to the Rational/Maximizing Decision-Making Model

Identify the need for a decision Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternative

PRESENTATION BY ABHA SURI 8

Decision-Making Understanding the problem Problem-solving and decision-

making Analyze the facts Determining a course of action

PRESENTATION BY ABHA SURI 9

Determining a Course of Action

There are five basic types of action that can be taken in problem-solving and decision-making: corrective action interim action preventive action contingency action adaptive action

Which oneis the best?

PRESENTATION BY ABHA SURI 10

Decision-Making Who makes the decision?

consider the different possibilities Other issues to consider are:

quality issues time and timing commitment control

PRESENTATION BY ABHA SURI 11

Group Decision-Making Interacting technique Brainstorming Nominal group technique Delphi technique Electronic meetings

PRESENTATION BY ABHA SURI 12

Summary There are many ways to make decisions and solve

problems. This chapter looks at several of the more common ways available to the leader.

The implicit favorite model will serve one well if he or she already knows what he or she wants to do.

The satisficing model works well if time is a consideration and one only needs to determine the criteria and then selects the first solution that meets the criteria.

The maximizing decision-making model provides a means to prioritize and understand the problem, analyze the facts, and then determine a course of action.