Decision Making

Decision Making

1. Types of decisions

   • Routine
   • Non -routine

2. Decision environments

   • Certain
   • Risk
   • Uncertain

3. Process

   • Identify
     • Analyse
       • Decide
         • Implement

4. Approaches

   • Classical
     • - Problem defined, clear alternatives and consequences, optimum decision made
   • Behavioural
     • - Undefined problem, limited knowledge of alternatives and consequences, 'satisfactory' decision made

5. Heuristics -'rule of thumb' for making decisions

6. Creativity - unique responses & vital in organisational success

   • Problem definition
     • Incubation
       • Illumination
         • Verification

7. Contribution

   • AI - Sole decision
   • AII - Gather info from employees
   • CI -Input from employees individually
   • CII - Input from employees collectively
   • G - Consensus

8. Method

   • Default - no alternatives
   • Authority rule - 1 person dominates
   • Minority rule - subgroup dominates
   • Majority rule - determined by vote
   • Consensus - not all favoured but all agree
   • Unanimous - favourable & all agree

9. Escalating committment

   • continues action even when suggests failure

10. Issues

    • Culture
    • Technology
    • Ethics & SR
      • Identify stake holders
        • Identify facts
          • Highlight Values and codes
            • Investigate and analyse all options
              • Road test decision