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CHAPTER 1 Intro to quality DM 3078980 - Coggle Diagram
CHAPTER 1
Intro to quality DM
NORMATIVE VS. DESCRIPTIVE
Descriptive fields do what the name implies; namely, describe reality and actions as they are, while normative fields identify how they should be.
Normative decision making—how we should make decisions, rather than how we actually make them.
However, we will also deal with descriptive decisions for three important reasons.
The first reason is motivational.
The second reason is practical.
Finally, our descriptive knowledge of how people receive information will enable us to present our results and understand them.
We picture our choice of action as determined by the interaction between two decision systems: One deliberative, or reasoned; the other affective, or emotional. The affective decision system is the “hot emotional system.”
The deliberative decision system, or the realm of reason, is the “cool cognitive system.”
REACTIVE AND PROACTIVE DECISION MAKING
Proactive decision making involves anticipating events and issues and taking action to minimize challenges and maximize successful outcomes before they become problematic.
Reactive decision making involves taking action after an incident or event has occurred.
Once a decision is declared, knowing what to do may require little effort or extensive analysis. Decision analysis is applicable to all types of decisions. However, we can use common sense or some rules of thumb to handle simple decisions in minutes.
However, more complex decisions deserve more thought. Using simple checklists to remind us of things to consider, and to help us identify common decision-making mistakes may make the process easier.
The most important decision we face deserves a more detailed analysis. They may involve elements of complexity, dynamics and far-reaching influence.
THOUGHT VS. ACTION
THOUGHT WITHOUT ACTION
Consider what you do in your daily life. This also includes how you might feel about someone or something. Most of our talking to ourselves is considered inaction, and maybe that is a good thing.
Reflection
Think of other situations where you may have thought but not acted.
ACTION WITHOUT THOUGHT
To illustrate the advantage of coaching even when a skill has been learned and performed automatically without thinking.
Reflection
Think of other situations where there is action but no thought.
NO THOUGHT-NO ACTION
The state of consciousness produced by proper meditation might be another.
Reflection
Think of other situations where there is no action and no thought.
THOUGHT AND ACTION—“ACTIONAL THOUGHT”
When we consider a decision, we are practicing thinking of action. What constitutes a high-quality action thought is decision analysis, our current endeavor.
DECISION VS. OUTCOME
A decision is a choice between two or more alternatives that involves an irrevocable allocation of resources.
This distinction means that we can make the right decision, but still get bad results due to uncertainty. Observations will not tell us anything about the quality of the decision, but only the quality of the results.
Using the distinction between a decision and its outcome, we can think of four eventualities:
making a good decision and getting a good outcome
making a good decision and getting a bad outcome
making a bad decision and getting a good outcome
making a bad decision and getting a bad outcome
WHAT CONSTITUES A GOOD DECISION
STAKEHOKLDERS OF A DECISION
6 ELEMENTS OF DECISION QUALITY
DECISION BASIS
We can use the metaphor of a three-legged stool to describe the six basic elements of decision-making quality. The stool metaphor is useful because it makes it clear to anyone involved in a decision which aspect of the decision is currently being considered.
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The location of the stool represents your decision framework, which determines alternatives, information, and preferences that are closely related to your decision.
The most important element is the person sitting on the stool. The person making the decision establishes the frame, finds and creates alternatives, collects relevant information, states preferences, and uses appropriate reasoning to choose the most desirable alternative.
The decision marker
- the person who will act.
A frame
- the person must provide a way of viewing the decisions.
Alternatives from which to choose
- a choice that is actually available and is under the decision maker’s control.
Preferences
- A decision maker will also have preferences on the futures that arise from different alternatives. The preferences describe what the person wants.
Information
- The connection between what we can do and what we want to do is provided by what we know
The logic by which the decision is made
- 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
Stakeholders as those who may influence or will be affected by the decision. In personal decision-making, stakeholders may be friends or family members.
Stakeholders in business decisions can be shareholders, employees, and customers.
Stakeholders in medical decisions can be the patient, doctors, nurses, and the patient’s family.
"A good decision is one that produces a desired outcome"
“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 outcome.”
