Please enable JavaScript.
Coggle requires JavaScript to display documents.
DECISION-MAKING - Coggle Diagram
DECISION-MAKING
-
-
Types of decisions
- Programmed decisions
- are routine and simple decision made to tackle frequently recurring problems and opportunities.
- managers formulate decision rules (procedures), subordinates and others can make the decision.
eg. decision to re-order office supplies when not enough.
- Non-Programmed decisions
- are decisions made in response to situations that are unique, poorly defined, largely unstructured and have important consequences for the organisation (fail or success).
- need a custom-tailored treatment.
eg. enter a new geographical market
Group decision making
ADVANTAGES
- broader perspective
(for defining problem & diagnosing underlying causes and effects)
- more alternatives can be evaluated
(group offer more knowledge and facts=identify potential solutions and produce more decision alternatives)
- reduces uncertainty about alternatives
- provides member support for decision
(people who participate are more satisfied with the decision and more likely to support)
DISADVANTAGES
- time-consuming
- wasted resources if used for programmed decisions
(as there is already a certain protocol for people to follow)
- compromise decisions may satisfy no one
(if they just agree w/o being devil advocate eg. w/o asking probing questions, looking into other solutions)
- groupthink
(if there is a dominant member eg. leader, whatever decision he make, members are pressurised to conform and simply agree due to fear)
- no focus for decision responsibility
(because the group rather any individual make the decision)
Decision biases to avoid
- Being influenced by initial impressions
(too much weight given to first info received)
- Justifying past decisions
(justify past decisions, even if they are no longer valid)
- Seeing what you want to see
(selective perspective: only hear & see what they want, tends to avoid info that contradicts them)
- Perpetuating the status quo
(basing decisions on what has worked in the past and may fail to explore new options, additional info or new technologies)
- Being influenced by emotions
(eg. angry, upset or extremely happy)
- Overconfidence
(overestimating the ability to predict uncertain outcomes)