Chapter 14

Decision Making and Control

• Decision Making
• How to Make Good
Decisions
• Problem Solving
• Building Decision
Making Skills
• Controlling
1
Elements in Managerial Decisions
• Decision: A conscious choice
among alternative courses of
action.
• Therefore the 3 elements are:
– A conscious choice among
alternatives
– A specific purpose
– A course of action

2
 Approaches to Decision Making

• Rational (Logical
Approach)
• Intuitive Approach
• Unable to decide
(Indecisive
Approach)
• Impulsive Approach

3
 Kinds of Decisions a Supervisor Makes
• Routine data based
decisions
• Serious decisions having
important consequences
• Emergency decisions
requiring distinctiveness
• Problem- Solving
• Decisions beyond your
authority
* It is essential to recognize which decisions need to be made now
and are most important 4
A Simple Version of Decision Making
(The Logical Approach)
• Define the problem (conditions
and limitations) and the set of
objectives
• Analyze the problem: fact finding
• Develop alternative solutions:
brainstorming
• Decide on the best solution
• Convert the decision into action
• Follow up
5
 Pattern of Problem Solving
• Describe the problem
• Search out the cause, get
the facts
• Define the real problem and
set objectives
• Develop alternative
solutions
• Decide on the best solution
• Implement the decision
• Follow up
6
Participative Problem Solving
• Argument for Group Decision Making :
– You get more info. And expertise relevant to
the decision
– You get more good ideas and can generate
more and better alternatives
– People thinking together can arrive at better
decisions because of the stimulation and
interplay of different points of view
– Participants are more committed to
carrying out
– Coordination and communication are
simpler and better because everyone
understands

7
Participative Problem Solving
• Criticism of group decision
making:
– It takes longer in a group
– There is usually a dominator in a
group
– Group participants get involved in
winning arguments and showing
off
– If consensus is required people may
conform to get the meeting over
– Consensus leads to mediocre
decisions

8
Group Decision Making Works Best When:
• Members are accustom to
working together as a team and
having differing expertise and
point of view but common
goals
• The leader is skillful at keeping
the meeting on target
• The group is rewarded for
making good decisions

9
 Solving Peoples Problems
• Personal problems are not
yours to resolve but
LISTENING can help.
• Keep your own emotions
out of it.
• Try to identify the real
problem.
• If possible eliminate friction
(ex. Food Expeditor).

10
Win-Win Problem Solving
• Win-Lose: You win, worker loses
• Lose-Win: You lose, worker wins
(retreat and appeasement, no stand)
• Lose-Lose: The compromise
• Win-Win problem solving means
you find a decision that satisfies
both of you.
– Include worker from the beginning:
From defining the problem to
carrying out an agreement

11
Guidelines for Building Decision
Making Skills
• Be sure of your authority for
making decisions
• Accept responsibility fully
• Distinguish what's important
• Make the decision at the time it is
needed
• Be alert to signs of problems
needing solutions
• Keep an open mind
12
 Guidelines for Building Decision
Making Skills
• Don’t solicit advise but do
consult your supervisor when a
problem is beyond your ability
to solve
• Make sure that you are not part
of the problem
• Learn from your mistakes
• Evaluate your decisions when
carried out

13
 Controlling
• Controlling: process by which supervisors
measure, evaluate, and compare results to
goals, and standards previously agreed upon,
and take corrective action when nessicary.
• Major area is COST.
• Productivity: efficiency which which inputs
are converted into outputs.
• Productivity standards: defined acceptable
quantity of work expected.
• Use control techniques.

14
 Controlling Techniques
• Require records and reports
• Develop and enforce performance standards
• Develop and enforce productivity standards
Develop and enforce departmental policies
and procedures
• Observe and correct employee actions
• Train and retrain employees
• Discipline when appropriate
• Be a good role model

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