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DECISION MODELS

Classical Models

A decisions making model based on the assumption that managers should make logical decisions that will be in the organizations best economic interests.

Normative
An approach that defines how a decision maker should make decisions and provides guidelines for reaching an ideal outcome for the organization.

ADMINISTRATIVE MODEL

A Decision making model that describes how managers actually make decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity.

Bounded rationality
The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions.

Satisfies
To choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are presumed to exist.

Descriptive An approach that describes how managers actually make decisions rather than how they should. Intuition The immediate comprehension of a decision situation based on past experience but without conscious thought.

Political Model

Coalition An informal alliance among managers who support a specific goal.

Decision-Making Steps
Recognition of Decision Requirement Evaluation And Feedback

Diagnosis And Analysis Of Causes

Decision-Making Process Implementation Development of Of Chosen Alternatives Alternative

Selection of Desired Alternative

Personal Decision Framework

Decision Style Differences among people with respect to how they perceive problems and make decisions. 1. Analytical Style. 2. Directive Style. 3. Conceptual Style. 4. Behavioral Style.

Personal Decision Framework


Situation
Programmed/nonprogrammed Classical, administrative, political Decision steps

Personal Decision Style


Directive Analytical Conceptual Behavioral

Decision Choice
Best solution to problem

Increasing Participation in Decision Making

Vroom-Jago model A model designed to help managers gauge the amount of subordinate participation in decision making.

Leader Participation Style


Decision Style Description

Highly Autocratic

AI

You solve the problem or make the decision yourself using information available to you at that time. You obtain the necessary information from your subordinates and then decide on the solution to the problem yourself. You share the problem with relevant subordinates individually, getting their ideas and suggestions without bringing them together as a group. Then you make the decision. You share the problem with your subordinates as a group, collectively obtaining their ideas and suggestions. Then

AII

CI

Highly Democratic
CII

Decision Style
G

Description
You share a problem with your subordinates as a group. Your role is much like that of chairman. You do not try to influence the group to adopt your solution, and you are willing to accept and implement any solution that has the support of the entire group.

Note : A = autocratic; C = consultative; G = group

Diagnostic Questions

Quality Requirement (QR). Commitment Requirement (CR). Leaders Information (LI). Problem Structure (ST). Commitment Probability (CP). Goal Congruence (GC). Subordinate Conflict (CO). Subordinate Information (SI).

PERSONAL DECISION FRAMEWORK

Decision Style: Differences among people with

respect to how they perceive problems and make decisions

INCREASING PARTICIPATION IN DECISION MAKING

Vroom-Jago model

A model designated to help managers gauge the amount of subordinate participation in decision making.

FIVE LEADER DECISION STYLES


Highly Autocratic Decision Style AI Description You solve the problem or make the decision yourself using information available to you at that time
You obtain the necessary information from your subordinates and then decide on the solution to the problem yourself You share the problem with relevant subordinates individually, getting their ideas and suggestions without bringing them together as a group . Then you make the decision. You share the problem with your subordinates as a group, collectively obtaining their ideas and suggestions. Then you make the decision. You share a problem with your subordinates as a group. Your role is much like that of Chairman. You do not try to influence the group to adopt your solution, and you are willing to accept and implement any solution that has the support of the entire group.

AII

CL

CLL

Highly Democratic Note: A= Autocratic; C= Consultative; G= Group

Vroom-Jago Decision Tree for Determining an Appropriate Decision- Making Method Group Problems
Yes CP Yes Decision Method

LI High High QR
Low

No

ST
Yes

No

CP

CR Low
LI

CR

Improving Decision Making Breadth and Creativity

Brainstorming
A decision-making technique in which group members present spontaneous suggestions for problem solution, regardless of their likelihood of implementation, in order to promote freer, more creative thinking within the group.

Improving Decision Making Breadth and Creativity

Devils advocate
A decision-making technique in which an individual is assigned the role of challenging the assumptions and assertions made by the group to prevent premature consensus.

Multiple Advocacy

A decision-making technique that involves several advocates and presentation of multiple points of view, including minority and unpopular opinions.