Decision Making

Learning Objectives
Define decision making.

Describe how critical thinking skills
are used in decision making.
State how decisions relate to
problem solving.
Describe each step in the decision-
making process.
2006 Thomson-Wadsworth
Learning Objectives
Differentiate between structured and
unstructured problems, and between
programmed and non-programmed
decisions.
Describe the different styles used by
managers for decision making.
Discuss how ambiguity, rationality, and
intuition influence decision making.
Learning Objectives
Identify the relationship between

decision making and risk.
List the advantages and
disadvantages of group decision
making.
The Process of Making
Decisions
Decision-Making Process
The logical, stepwise approach that is used
to make a choice between options, to solve
a problem, or to resolve a dilemma.
Contingency Planning
Anticipation of the need to make a decision
some time in the future and making the
decision in advance so that it can be
implemented in a timely manner at the time
it is needed.
Decisions
Decisions
Problem Identification
The first step in the decision-making
process; the act of finding a problem
and acknowledging that it exists.
Problem - A difference between what
is and what should be.
ex: nutrient analysis software in
clinical nutrition dept. needs upgrade
Decisions
Criteria for decision making
Establish Decision-Making
Criteria - The second step in the
decision-making process; determining
which factors will have the most
relevance in solving a given problem.
ex: list required and desired specs.
for nutrient analysis software
Decisions
Weighting criteria
Weighting the Decision-Making
Criteria - The third step in the
decision-making process; assigning
each established criterion a ranking in
terms of importance to the decision
that is to be made.
ex: Table 4.2...
Decisions
Developing alternatives
Identify the Alternatives - The
fourth step in the decision-making
process; the act of determining the
different options available to solve
the problem at hand.
ex: research available software
packages
Decisions
Analysis of alternatives
Analyze the Alternatives - The fifth
step in the decision-making process;
the process of comparing and
examining the alternatives available
by measuring them against the same
standards, using only relevant
criteria.
ex: quantified analysis in Table 4.3...
Decisions
Choosing an alternative
Making the Decision - The sixth step
in the decision-making process;
involves choosing which alternative(s)
will best solve the problem based on
the analysis that has been done.
ex: choose software package to
purchase (Option C from Table 4.3)
Decisions
Implementing the decision
Implement the Decision - The
seventh step in the decision-making
process; the act of carrying out the
decision that has been made; often
involves communicating exactly what
is to happen based on the decision.
ex: purchase and install software, train
dietitians to use it, enter data, etc.
Decisions
Evaluation
The eighth and last step of the
decision-making process; receiving
feedback about the decision that has
been implemented
Was it effective, efficient, appropriate,
and adequate?
ex: Did the software upgrade improve
efficiency, quality patient service, etc.?
Types of Decisions
Structured problems and programmed
decisions
Structured Problem - A discrepancy
between what is and what should be that is
both routine and predictable.
Programmed Decisions - Decisions that
are made routinely, often relying on
precedent, in which information can be
transferred from one similar situation to the
next; usually used to solve structured
problems.
Types of Decisions
Structured problems and

programmed decisions
Programmable Decisions -
Decisions that, though not yet
programmed, are of the routine type
that can be programmed.
Types of Decisions
Unstructured problems and
nonprogrammed decisions
Unstructured Problem - A discrepancy
between what is and what should be that is
new, unusual, and often unpredictable.
Nonprogrammed Decisions - Decisions
that are used to resolve unstructured
problems; these decisions require much
research and thought.
Types of Decisions
Unstructured problems and

nonprogrammed decisions
Institutional Memory - The
historical precedent of an
organization that can be used in the
decision-making process.
Types of Decisions
Managerial levels and decision

making
Type of decision made by a manager
correlates with his/her management
level
Most nonprogrammed decisions are
made by upper-level managers
Decision-Making Styles
Problem Avoider
A decision-making style in which the
person does not recognize a problem
or chooses to avoid it; one who may
make the choice not to make a
decision.
Problem Solver
A decision-making style in which the person
recognizes existing problems and deals with
them in a timely manner.
Reactive - A characteristic of a problem
solver who acts on problems after they
have become obvious.
Problem Seeker
A decision-making style in which the person
is proactive and deals with potential
problems before they become obvious.
Ambiguity versus rationality
Directive Decision Maker - A type of
decision maker characterized by being
efficient and logical, requiring little
information to make a decision, looking at
few alternatives, and exhibiting a low
tolerance for ambiguity.
Conceptual Decision Maker - A type of
decision maker characterized by being open
to new ideas, looking at many alternatives,
having a high tolerance for ambiguity, and
relying on instinct versus logic and reason.
Ambiguity versus rationality
Analytic Decision Maker - A type of
decision maker who enjoys solving
problems, likes to seek alternatives and
information, can tolerate ambiguity, and
applies a rational, methodical approach to
solve problems.
Behavioral Decision Maker - A type of
decision maker who uses intuition, feelings,
and perceptions versus actual data, and
who dislikes ambiguity.
Risk in Decision Making
Certainty
A situation in which the outcome of a
decision is known and expected.
Risk
The unknown or uncertain factors or
outcomes involved in making a decision.
Uncertainty
A situation in which the outcomes of a
decision cannot be predicted with any
degree of accuracy.
Group Decision Making
Accommodation
A situation in which members of a
group feel that they have to accept
the position of the dominant member
of the group.
De Facto Decisions
Decisions that are made passively
with no obvious objections expressed.
Groupthink
A characteristic of groups that
evolves when the cohesiveness of the
group becomes more important than
the problem that needs to be solved.
In this situation, members feel loyal
to each other and may not want to
jeopardize this unity by expressing
opposing opinions.
Risk in group decision making
Shared risk = more willingness to
take risks.
Information pool is larger.
Maximizing group decision making
Brainstorming - The informal
process of tackling a given problem
by contributing as many ideas as
possible without analysis or criticism.
Maximizing group decision making
Nominal Group Technique A
methodical, rational approach to making a
group decision in which each member
contributes ideas, and alternatives are
ranked to deduce a sensible, fair decision.
Delphi Technique - An approach to
coming up with a group decision similar to
the nominal group technique except that
members do not meet but instead
communicate and analyze ideas through
written communication until consensus is
reached.
Conclusion
Decision making is an eight-step
process that includes problem
identification, establishment and
weighting of criteria, development and
analysis of alternatives, making the
decision, implementing it, and following
up.
Structured problems require
programmed or programmable
decisions; unstructured problems
require nonprogrammed decisions.
Conclusion
Different levels of managers tend to
make different types of decisions.
Managers develop personal decision-
making styles that can be described
using one or more of the following
terms: avoidance, reactive, proactive,
directive, conceptual, analytic, and
behavioral.
Conclusion
There are distinct advantages and

disadvantages to group decision
making; techniques are available
to maximize the group decision-
making process.
Reality CheckDecision
Clusters
Many decisions may cluster around
a particular problem
Making one decision may trigger a
series of other decisions
ex: Reduce spending on oral and
enteral supplements in a small
community hospital/skilled nursing
facility.

Decision Making

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Decision Making

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Learning Objectives

Define decision making.

Identify the relationship between

Structured problems and

Unstructured problems and

Managerial levels and decision

There are distinct advantages and

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