Beruflich Dokumente
Kultur Dokumente
DECISION MAKING The act of choosing one alternative from among a set of alternatives. DECISION-MAKING PROCESS Recognize and define the nature of a decision situation Identify appropriate alternatives Choose and justify the best alternative (Recommend)
Evaluated on basis of feasibility, effectiveness, and consequences
Implement the recommendation (Put it into practice) EFFECTIVE DECISIONS Effective decisions optimize some set of factors: e.g. maximize profits, sales, market share or satisfaction, or minimize costs, waste, turnover, or unhappiness.
IS THERE A PERFORMANCE GAP? Assumes there are standards to judge Assumes there is monitoring and feedback IS THE DECISION MAKER AWARE OF THIS GAP? Consciousness of the gap Significance to the organization DOES THE DECISION MAKER HAVE THE RESOURCES TO ACT? Knowledge and ability to fix the problem Budgets, personnel, power IS THE DECISION MAKER MOTIVATED TO ACT ON THE GAP? Rewards and risks weighed Risk-averse or risk-seeker?
TYPES OF DECISIONS
ROUTINE (Programmed)
COMMON PROBLEMS WITH WELL-DEFINED SOLUTIONS
: Rules, procedures, computer software packages There is an obvious best solution or alternative
ADAPTIVE
A COMBINATION OF MODERATELY UNUSUAL AND ONLY PARTIALLY-KNOWN PROBLEMS AND ALTERNATIVES
Incremental changes or modifications of past decisions and practices Selecting from a set of known alternatives, but unsure of the outcomes
INNOVATIVE (Non-Programmed)
UNUSUAL OR AMBIGUOUS PROBLEMS WHICH REQUIRE UNIQUE OR CREATIVE ALTERNATIVE SOLUTIONS
Emphasizes radical change, innovation, brainstorming Not sure what the alternatives are, not sure whether any will work
RECOMMENDED SOLUTIONS
JUSTIFY WHY THIS CHOICEWHY NOT THE OTHERS?
IMPLEMENTATION
STEPS AND PROCEDURES TO FOLLOW TO ENSURE SUCCESS
BOUNDED RATIONALITY
SIMON (57)
SATISFICING
IS THE OPTION UNDER CONSIDERATION OK or GOOD ENOUGH? SELECTION OF THE FIRST TOLERABLE OPTION
DECISION MAKING
RISK
DECISION MAKERS KNOW WHICH OBJECTIVES THEY WANT TO ACHIEVE ALTERNATIVES ARE CLEAR LIKELIHOOD OF OUTCOMES IS SUBJECT TO CHANCE GOOD INFORMATION IS AVAILABLE
UNCERTAINTY
DECISION MAKERS KNOW WHICH OBJECTIVES THEY WANT TO ACHIEVE ALTERNATIVES ARE INCOMPLETE LIKELIHOOD OF OUTCOMES IS NOT UNDERSTOOD INFORMATION IS INCOMPLETE
AMBIGUITY
OBJECTIVES TO BE ACHIEVED ARE NOT CLEAR ALTERNATIVES ARE DIFFICULT TO DEFINE INFORMATION ABOUT OUTCOMES IS UNAVAILABLE
DECISION STYLES
THOMPSON & TUDEN (59) CLEAR PREFERENCES REGARDING OUTCOMES
YES, We Agree NO Agreement Known with Certainty Not Known ---------------------------------------------------YES, We Know What To Do
JUDGMENTAL
BLUE-SKY
(Inspirational)
----------------------------------------------------
DO YOU KNOW WHAT OUTCOMES YOU WANT AND WHAT TO DO TO GET THEM?
COMPENSATORY PROCESS (CLASSICAL) ALL IMPORTANT CRITERIA ARE CLEARLY IDENTIFIED CRITERIA ARE WEIGHTED ACCORDING TO IMPORTANCE ALL ALTERNATIVES CAN BE MATHEMATICALLY MODELED EXPECTED VALUE IS CALCULATED FOR EACH OPTION THE BEST EXPECTED VALUE IS THE OPTIMAL CHOICE
USE OF EXPECTED VALUES ALWAYS LEADS TO THE OPTIMAL SOLUTION VERY HIGH PERFORMANCE ON ONE CRITERION CAN OFFSET WEAKNESSES IN ANOTHER
ORIGINAL GRID
Price MPG Room Power Style .40 .20 .10 .10 .20 ----------------------------9,000 50 .4 .4 .6 12,000 35 .6 .7 .9 14,000 28 .7 .9 .7 10,500 32 .7 .7 .4
EXPECTED VALUE
.4 .6 .7 .7
.4 .7 .9 .7 1.0
.6 .9 .7 .4 1.0
50mpg 1.0
CONJUNCTIVE PROCESS
OR MULTIPLE HURDLES APPROACH
ALL IMPORTANT CRITERIA ARE CLEARLY IDENTIFIED CRITERIA CAN BE RANKED OR ORDERED IN IMPORTANCE CUTOFF LIMITS ARE SET FOR EACH CRITERION ALTERNATIVES ARE COMPARED TO THE CUTOFF LIMITS ONLY ALTERNATIVES WITHIN ALL CUTOFF LIMITS SURVIVE NOT AN OPTIMIZING PROCESS---NO SOLUTION GUARANTEED
THE PROCESS MAY NARROW DOWN THE OPTIONS, BUT DOESNT GUARANTEE A BEST SOLUTION WILL BE FOUND. IN FACT, IT IS POSSIBLE THAT ALL ALTERNATIVES MAY BE ELIMINATED BY THE CUTOFF LIMITS, LEAVING US WITH NO RECOMMENDATION.
EXCEPTIONAL STRENGTH ON ONE CRITERION CANNOT MAKE UP FOR A WEAKNESS OR LACK ON ANOTHER CRITERION.
ALL THE MINIMUMS ON ALL THE CRITERIA MUST BE MET.
OK OK FAIL OK
OK OK ---OK
OK OK
FAIL
FAIL OK
----
--OK
YES**
DISJUNCTIVE PROCESS
OR BEHAVIORAL
WE HAVE SOME CRITERIA, BUT THE LIST SEEMS INCOMPLETE UNABLE TO EITHER WEIGHT OR RANK CRITERIA BY IMPORTANCE WE CAN PERCEIVE OUTSTANDING ATTRIBUTES FOR EACH OPTION WE LIST THE STRENGTHS & WEAKNESSES OF EACH OPTION WE PICK OUR CHOICE BASED ON A REVIEW OF THESE S/W LISTS
THE DECISION PROCESS IS UNSYSTEMATIC, INCONSISTENT AN ALTERNATIVE WITH A BAD ATTRIBUTE IS FREQUENTLY REJECTED FINAL CHOICES ARE USUALLY MADE USING A SINGLE CRITERION WHICH THE DECISION MAKER HAS DECIDED TO FOCUS UPON.
THESE DECISIONS ARE MUCH MORE SUBJECTIVE THAN THEY APPEAR, AND ARE DIFFICULT TO DEFEND IF CHALLENGED.
Original Grid
Good
Good Bad Bad
Bad
Good
Good
Eliminate the alternatives with Bad evaluations, and see what is left. Thus, we buy Car B because I liked the color and my wife liked the interior!
NOT RATIONAL OR SYSTEMATIC, BUT WE THINK WE WERE LOGICAL IN WHAT WE DID BEFORE SELECTING THE CAR.
ENVIRONMENTAL SCENARIOS
WHAT ARE YOUR ASSUMPTIONS ABOUT THE ENVIRONMENT? POSSIBLE STATES OF NATURE (Scenarios)
MUTUALLY EXCLUSIVE THINGS WE DONT CONTROL
PAYOFF TABLES
SINGLE-PHASE PROBLEMS RECURRING, REPETITIVE DECISIONS CAN ILLUSTRATE THE CLASSICAL DECISION PROCESS
DECISION TREES
MULTI-PHASE PROBLEMS NEAR-UNIQUE, ONE-TIME-ONLY DECISIONS
NORMAL
WET
DRY
VIOLENT
-------------------------------$ 900 450 -800 250 -------------------------------800 -300 400 500 -------------------------------300 500 0 100 --------------------------------
MAXI-MAX (Optimist) *Corn 900, Potato 800, Hay 500 MAXI-MIN (Pessimist) Corn -800, Potato -300, *Hay 0 MINI-MAX (Regret) Regrets..Corn 1200, Potato 800, *Hay 600 AVERAGE (Rational) Ex ValueCorn 200, *Potato 350, Hay 225
ORIGINAL MATRIX
ALTERNATIVE CROPS
NORMAL
WET
DRY
VIOLENT
-------------------------------$ 900 450 -800 250 800 -300 400 500 300 500 0 100 --------------------------------
0 50 1200 250 100 800 0 0 600 0 400 400 -----------------------------------MINIMIZE THE MAXIMUM REGRETS Corn = 1200, Potatoes = 800, Hay = 600**
INDIAN JOES ESTIMATES = Normal 30%, Wet 25%, Dry 20%, Violent 25% STATES OF NATURE / ENVIRONMENTAL SCENARIOS ALTERNATIVE CROPS WEIGHTS NORMAL WET DRY VIOLENT EXPECTED
.30 .25 .20 .25 VALUES ======================= $ 900 450 -800 250 $ 285 -------------------------------800 -300 400 500 370** -------------------------------300 500 0 100 240
= = = = = = = = = = = = = = = = = = = = = = = == = You should PLANT POTATOES EVERY YEAR. In any one year youll either make 800, lose 300, make 400, or make 500 but over the years, youll average $370 of profits.
PROBABILITY INFORMATION COMES FROM RELIABLE (FACTUAL) SOURCES WEATHER BUREAU HISTORY = Normal 35%, Wet 30%, Dry 15%, Violent 20%
STATES OF NATURE / ENVIRONMENTAL SCENARIOS
ALTERNATIVE CROPS
NORMAL
WET
DRY
VIOLENT EXPECTED
.35 .30 .15 .20 VALUES ======================= CORN $ 900 450 -800 250 $ 380** -------------------------------POTATOES 800 -300 400 500 350 -------------------------------HAY/GRASS 300 500 0 100 275 ======================= You should PLANT CORN EVERY YEAR. In any one year youll either make 900, make 450, lose 800 or make 250 but over the years, youll average $380 of profits.
WEIGHTS
NORMAL
WET
DRY
VIOLENT EXPECTED
.35 .30 .15 .20 VALUES ======================= CORN $ 900 450 -800 250 $ 380** POTATOES 800 -300 400 500 350 HAY/GRASS 300 500 0 100 275 ======================= Expected Profits given Perfect Information (EPPI) = $625. Expected Value of Perfect Information (EVPI) = EPPI EV = $625 380 = $ 245 Therefore, you can increase your profits by up to $245 if you have a perfect weather forecast each spring.
WEIGHTS
DISADVANTAGES
TIME CONSUMING POSSIBLE INDECISIVENESS COMPROMISE DECISIONS DOMINATION BY A MEMBER RISKY SHIFTS GROUPTHINK
TIME AVAILABILITY TYPE OF PROBLEM OR TASK AVAILABILITY OF INFORMATION NEED FOR ACCEPTANCE OF DECISION LEVEL OF TRUST CAPABILITIES OF SUBORDINATES LIKELIHIID OF CONFLICT
3. CHARACTERISTICS OF SUBORDINATES
WILL SUBORDINATES ACCEPT THE LEADERS DECISION? DO SUBORDINATES SHARE THE ORGANIZATIONS GOALS? IS CONFLICT LIKELY AMONG SUBORDINATES (OVER THE CHOICES)? CAN THEY CONTRIBUTE GOOD INFORMATION TO MAKE THE CHOICE?
NO SEARCH TO FIND ADVANTAGES FOR OTHER ALTERNATIVES, AND NO SEARCH FOR WAYS TO MAKE OTHER OPTIONS FEASIBLE
LITTLE OR NO ATTEMPT TO OBTAIN EXPERT OR OUTSIDE ADVICE A TENDENCY TO IGNORE FACTS AND OPINIONS THAT DO NOT AGREE WITH THE PREFERRED PLAN OF ACTION NO CONTINGENCY PLANS ESTABLISHED IN CASE SOMETHING GOES WRONG NO ATTEMPT TO LOOK AT THE SITUATION FROM A CONTRARY OR ANTAGONISTIC VIEWPOINT LAUGHING AT DANGER SIGNALS; MAKING LIGHT OF INDICATIONS THAT ALL IS NOT PROCEEDING SMOOTHLY LEADERS WHO DOMINATE DISCUSSIONS AND MAKE THEIR SUGGESTIONS EARLY, BEFORE OTHERS HAVE HAD THEIR SAY
SYMPTOMS OF GROUPTHINK
JANIS (72)
CLOSEMINDEDNESS
RATIONALIZATION (Discounting Warning Signs) STEREOTYPED VIEWS OF OUTSIDERS (Not Trusted & Not Very Smart)
DIVIDE INTO TWO OR MORE SUBGROUPS TO WORK INDEPENDENTLY ON THE SAME PROBLEM
HAVE EACH GROUP REPORT BACK
BRAINSTORMING
USED TO GENERATE NEW IDEAS OR ALTERNATIVES RULES: FREEWHEELING IS WELCOME --- OFFER ANY IDEAS THAT COME TO YOU QUANTITY IS DESIRED --- DONT WORRY ABOUT QUALITY OR RISK RIGHT NOW NO CRITICISM OR PRAISE OF IDEAS IS ALLOWED
IDEAS ARE SHARED WITH MEMBERS EITHER AS AN EXHAUSTIVE LIST, OR ARE PRESENTED ONE AT A TIME WITHOUT COMMENT
MEMBERS VOTE BY SECRET BALLOT TO SELECT THE BEST IDEAS WHICH THEY WANT TO PURSUE FURTHER EACH ITEM IS DISCUSSED AND EVALUATED PUBLICLY (Pros and Cons) FINAL VOTES ARE TAKEN BY SECRET BALLOT
REDUCES THE EFFECTS OF POWER AND STATUS DIFFERENCES ALL MEMBERS CAN PARTICIPATE AND GET THEIR IDEAS BEFORE THE GROUP MEMBERS ARE NOT INTIMIDATED BY A DOMINANT MEMBER
DELPHI TECHNIQUE
CAN PROBE THE VIEWS OF INDUSTRY EXPERTS MATRERIALS SENT TO PARTICIPANTS FOR REACTIONS OPTIONS ARE INDIVIDUALLY WRITTEN AND SENT BACK SUMMARIES ARE SENT OUT FOR FURTHER COMMENT ROLE OF THE IN-HOUSE COORDINATOR IS CRUCIAL THE GROUP NEVER MEETS TOGETHER NO FINAL DECISIONS ARE MADE BY THIS GROUP
THIS IS A VIRTUAL GROUP WHICH CAN BE INTERNET CONNECTED PROCESS GATHERS THE BEST THINKING & JUDGMENT OF EXPERTS SUCCESSIVE FEEDBACK REDEFINES AND FOCUSES IDEAS FINAL DECISIONS ARE MADE BY COMPANY OFFICIALS, NOT THE GROUP