Scribd
Upload
7 views11 pages

Management Report Ppt

The document discusses decision-making in management, outlining the process of identifying problems, analyzing alternatives, and selecting the best course of action. It highlights various approaches to decision-making, including rationality, bounded rationality, intuition, and evidence-based management, while also addressing biases that can affect decisions. Additionally, it emphasizes the importance of design thinking in enhancing decision-making effectiveness by focusing on user needs and creative solutions.

Uploaded by

leonardtumbali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
7 views11 pages

Management Report Ppt

The document discusses decision-making in management, outlining the process of identifying problems, analyzing alternatives, and selecting the best course of action. It highlights various approaches to decision-making, including rationality, bounded rationality, intuition, and evidence-based management, while also addressing biases that can affect decisions. Additionally, it emphasizes the importance of design thinking in enhancing decision-making effectiveness by focusing on user needs and creative solutions.

Uploaded by

leonardtumbali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 11

Philippine Christian University

Dasmariñas Campus
Graduate School of Business and Management
Online Education and Professional Advancement

CHAPTER TITLE: DECISION MAKING


WHAT IS DECISION
MAKING?

Decision-making in management is the process of


choosing the best course of action from a set of
alternative options to achieve specific goals or
solve problems within an organization. It involves
data gathering, weighing pros and cons, analyzing
options, and selecting the option that will have the
most positive impact on the organization's success.
THE DECISION-MAKING PROCESS
Identify a Problem
Recognize and define the challenge or opportunity that requires a decision.

Identify Criteria
Determine the relevant factors and considerations for the decision.

Develop Alternatives
Generate a range of potential solutions or courses of action.
Analyze Alternatives
Evaluate the pros and cons of each option based on the identified criteria.

Select an Alternative
Choose the best option based on the analysis.

Implement
Put the selected alternative into action.

Evaluate
Assess the outcome and make adjustments as necessary.
APPROACHES TO
DECISION MAKING
Rationality Bounded Rationality

Employs logic and Acknowledges limitations


objective data to in information, time, and
maximize outcomes. cognitive resources. Seeks
Relies on a structured satisfactory rather than
process and thorough optimal solutions.
analysis.

• Objective • Satisficing
• Data-driven • Realistic
• Analytical • Adaptive
APPROACHES TO
DECISION MAKING
Evidence-Based
Intuition
Management (EBM)
Based on gut feelings and Integrates research, data, and
experience. Useful when professional judgment to
facing ambiguity or time make informed decisions.
constraints but can be prone Minimizes biases and
to biases. improves outcomes.

• Gut feeling • Data-driven


• Experience-based • Research-backed
• Quick • Effective
Types of Decisions: Programmed
vs. Non-Programmed

Programmed Decisions
Repetitive and routine, with established procedures or policies.

Non-Programmed Decisions
Unique and unstructured, requiring creativity and judgment.

Programmed decisions are straightforward, such as processing a customer


refund or reordering inventory. Non-programmed decisions, on the other hand,
are complex and require careful consideration, like entering a new market or
developing a new product. Understanding the nature of the decision is crucial
for applying the appropriate approach.
Decision-Making Conditions
Risk
Outcomes involve probabilities, requiring
Certainty
2
assessment and mitigation strategies.

Outcomes are fully predictable, allowing for


confident decision-making. 1

3
Uncertainty
Outcomes are unpredictable, demanding
flexibility and adaptive strategies.

Operating in an environment of certainty means you have access to enough information to predict the outcome of your decision.
Navigating risk means you can estimate the likelihood of various outcomes and their potential impact. Dealing with uncertainty
means you must rely on judgment, intuition, and scenario planning to make decisions.
Decision-Making Biases and Errors:
Avoiding Cognitive Traps

Confirmation Bias
Seeking information that supports
existing beliefs. Being aware of these biases
helps managers make more
Availability Heuristic rational and objective
decisions. Mitigating these
Relying on easily recalled information. biases involves seeking
diverse perspectives, using
data-driven analysis, and
Anchoring Bias being open to revising
Overemphasizing initial information. initial judgments.
Recognizing and addressing
these common pitfalls is
Escalation of Commitment essential for improving
Persisting with a failing course of action. decision-making quality.
Effective Decision Making:
Guidelines for Success
Gather Diverse Embrace
Input Creativity
Seek input from Encourage innovative
varied perspectives thinking and consider
and sources to unconventional
broaden solutions.
understanding.

Balance Analysis Adapt and Learn


and Intuition

Combine data-driven Monitor outcomes and


insights with adjust strategies based
experienced judgment. on feedback and
experience.
Design Thinking and Decision Making

Design thinking emphasizes understanding the user's needs, generating creative solutions, and iteratively testing and
refining these solutions. Integrating design thinking into decision-making enhances problem-solving by fostering
empathy, promoting experimentation, and ensuring solutions are user-centered. This human-centric approach enables
more effective and innovative decisions.

Key Takeaways:

• Decision-making is a critical management skill.


• Understanding different approaches and biases is essential.
• Design thinking can enhance decision-making effectiveness.

You might also like