The Managerial Decision Making
This is a mind map about managerial decision making. Managerial Decision Making is an essential, insightful volume of classic behavioral research articles. Professor Don Moore has selected original articles that form the basis of areas of explosive productivity and influence.
Similar Mind Maps
Chapter 1 The Managerial Decision Making
Contemporary Issues in Managerial Decision Making.
National culture: influences the way decisions are made and the degree of risk involved.
Design thinking: approaching management problems as designers approach design problems.
Creativity lets the decision maker:Understand a problem more fully See problems others can’t Identify all viable alternatives
Big Data: the vast amounts Of quantifiable information that can be analyzed by highly sophisticated data processing
THE DECISION–MAKING PROCESS
What is Problem: A discrepancy between an existing and a desired state of affairs.
What is Implementing the Decision: Putting a decision into action.
What is Identifying Decision Criteria : Relevant Factors: Price , Model , Size , Manufacturer , Options , and Repair record.
Rational decision making is choices that are consistent and value-maximizing within specified constraints.
Bounded Rationality is making decisions that are rational within the limits of a manager’s ability to process information.
Satisfice is accepting soluting that are “good enough”.
Decision-Making Errors and Biases
Hindsight Selective Perception Anchoring Effect Immediate Gratification Confirmation Overconfidence Availability Randomness Representation Overconfidence Framing Revision Self-serving Sunk Costs
ORGANIZING Decide what need to be done, how will it be done and who will do it
CONTROLLING Monitoring activities to ensure they achieved as Planned.
PLANNING Defining goals by establishing strategies and make action plans to coordinate activities.
LEADING Directing and motivating all parties involved, also sorting out conflicts
What Is Intuition?
Problems Differ/ Type of Problems
The decision maker can have clear picture of the problems, straightforward, familiar, easily defined and to completed it .
They are new or unusual problems for which information is ambiguous or incomplete.
A situation in which a decision maker is able to estimate the likelihood of certain outcomes
A situation in which a decision maker can make accurate decision because all outcomes are known.
A situation in which a decision Maker has neither certainty nor reasonable probability estimates available.
Problems, Decision Types, and Organizational Levels
Types of Decisions
A repetitive decisions that can be handled using a routine approach.
A unique and nonrecurring decision that requires a custom made solution.
Group Decision Making
Group decision-making is a situation faced when individuals collectively make a choice from the alternatives before them. The decision is then no longer attributable to any single individual who is a member of the group. Decisions are often made by groups representing the people who will be most affected by those decisions. Committees Task forces Review panels Work teams
1. Advantages of Group Decision Makin
Diversity of experiences/perspectives More complete information More alternatives generated Increased acceptance of solution Increased legitimacy
2. Disadvantages of Group Decision Making
Time-consuming Minority domination Ambiguous responsibility Pressures to conform
The Tragedy of Groupthink
When a group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement.
What it does Hinders decision making, possibly jeopardizing the quality of the decision by: - Undermining critical thinking in the group . - Affecting a group’s ability to objectively appraise alternatives. Deterring individuals from critically appraising unusual , minority, or unpopular views.
How it occurs Group members rationalize resistance to assumptions. Members directly pressure those who express doubts or question the majority’s views and arguments. Members who have doubts or differing points of view avoid deviating from what appears to be group consensus. An illusion of unanimity prevails.Full agreement is assumed if no one speaks up.
How to minimize it Encourage cohesiveness. Foster open discussion Have an impartial leader who seeks input from all members.
Improving Group Decision Making
Brainstorming:An idea – generating process that encourages alternatives while withholding criticism.
The nominal group technique :A decision making technique in which group members are physically present but operate independently
Electronic meetings:A type of nominal group technique in which participants are linked by computer
When Are Groups Most Effective?
Individual -Faster decision making -More efficient use of work hours Group -More accurate decisions -More creative -More heterogeneous representation -Greater acceptance of final solution
What is Decision Making : Decision Making is a process, not a simple act of choosing among alternatives.