Chapter 1 Introduction to Quality
Decision Making

NORMATIVE VS. DESCRIPTIVE

REACTIVE VS. PROACTIVE DECISION MAKING

THOUGHT VS. ACTIONS

Region 1-Thought without action
-Feelings towards someone or something.
-For example : self-talk

DECISION VS. OUTCOME

Region 2-Action without thought
-A reflex response to a stimulus.
-For example : crying after cutting an onion, riding a bicycle ( inborn ability)

Decision and outcome
Four eventualities:
1) Making a good decision and getting a good outcome.
2) Making a good decision and getting a bad outcome.
3) Making a bad decision and getting a good outcome.
4) Making a bad decision and getting a bad outcome.

What constitutes a good decision

Stakeholders of a decision

The six elements of decision quality

1)The decision-maker

2)A frame

3)Alternatives from which to choose

4)Preferences

5)Information

6)The logic by which the decision is made

the person who will act.

the person must provide a way of viewing the decision.

a choice that is actually available and is under the decision maker's control.

a decision maker will also have preferences on the futures that arise from different alternatives.The preferences describe what the person wants.

the connection between what we can do and what we want to do is provided by what we know.

if we want to use a systematic process, such as logical reasoning, then we will want to use the best rules we know for this reasoning.

The decision basis

Decision quality chain
-Elements of a good decision consists of :

Right
Frame

Right
Alternatives

Right Values

Right
Information

Right
Reasoning

Normative decision making
-how actions should be carry out
-influenced by affective decision system(emotional)
-action determined by factors such as stress and cognitive effort

Descriptive decision making
-how actions actually be carry out
-influenced by deliberative decision system(reasoned)
-action determined by willpower

Reactive Decision
-Reactive decision making involves taking action after an incident or event has occurred.

Proactive Decision
-Proactive decision making involves anticipating events, issues and taking action to minimize challenges and maximize successful outcomes before they become problematic.

Hierarchy of Decision
1. Rigorous
-Apply formal decision.
2.Conscious
-Use a checklist and avoid decision traps.
3.Quick
-Use common sense and rules of thumb.

Region 3 : No Thought No Action
-Unconscious.
-For example : coma

Region 4 : Thought and Action-"Action Thought"
-Think about a decision, we are practicing actional thought.
-For example : decision analysis

What is decision?
-A decision is a choice made from two or more alternatives.


-"A good decision is one that produces a desired outcomes".
-"A good decision is one that has the highest chance of getting the best outcome".
"A good decision is one that has the lowest chance of getting the worst outcomes".

Who is stakeholders?
-A stakeholder as someone who can affect, or will be affected by, the decision.

Stakeholder may be :
-Personal decision: Friends and family.
-Business decision: Shareholders, employees, and customers.
-Medical decisions: Doctors, nurses, patient, and the patient's family.

The decision basis
1.What you can do : Your alternatives.
2.What you know : Your knowledge related to the alternatives about the future consequences.
3.What you want : Your preferences on consequences

Decision
Maker