12: Making Decisions
- Page ID
- 48562
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)Explain the process and techniques of individual and group decision-making
- Describe the types of decisions made in different types of organizations
- Describe the role of statistics, data analytics, data science and managerialism in contemporary decision-making
- 12.1: Managerialism and Decision Making
- This page discusses managerialism, which prioritizes efficiency through professional management, often at the expense of individual expertise. Critics highlight the centralization of decision-making and conflicts in sectors such as healthcare, where profit motives may compromise care quality. Studies reveal clashes between healthcare providers and managers, raising ethical concerns.
- 12.2: Decision Making Tools
- This page outlines decision-making tools for individuals and organizations, emphasizing the Pareto Diagram for significant issues, Cause and Effect Diagram for causes, feasibility reporting for project assessments, and SWOT analysis for strategy. It also covers decision-making diagrams for visualizing alternatives and costs, software for data analysis, and the Vroom-Yetton-Jago model for stakeholder involvement in decisions.
- 12.3: Making Decisions
- This page describes learning objectives around individual and group decision-making, illustrated through a bakery setup scenario involving two friends. It includes an interactive element and attributes the content to Barbara Egel and Lumen Learning under a CC BY license.
- 12.4: Putting It Together- Making Decisions
- This page highlights the importance of effective decision-making in organizations, linking it to improved financial outcomes. Research shows a strong correlation across different industries and countries. Successful decision-making involves overcoming challenges and leveraging tools, with creative problem-solving and in-depth process knowledge being key skills for individuals aiming to enhance their organization's success.
- 12.5: Discussion- Making Decisions
- This page discusses the selection of a new HRIS system by HR managers, emphasizing the importance of collaborative decision-making that incorporates insights from both IT and HR to ensure the system aligns with organizational needs. It encourages participants to engage in discussions and share perspectives on effective decision-making strategies.
- 12.6: Why It Matters- Making Decisions
- This page emphasizes the importance of understanding individual and group decision-making, highlighting its impact on various choices and its correlation with financial success in business. Research shows that companies with effective decision-making enjoy significantly higher shareholder returns. Consequently, improving decision-making within organizations is essential for achieving better outcomes and fostering innovation.
- 12.7: Introduction to Making Decisions in Different Organizations
- This page discusses the significance of effective and timely decision-making in organizations, highlighting techniques and tools used, potential obstacles, and the role of creative decisions in gaining a competitive edge. Authored by the Freedom Learning Group, it is licensed under CC BY: Attribution.
- 12.8: The Decision Making Process
- This page discusses decision-making models applicable to personal and business contexts. It presents the rational decision-making model, emphasizing a structured eight-step approach, and contrasts it with bounded rationality, which recognizes information and cognitive limitations. Other models covered include linear decision-making (pros and cons), intuitive decision-making (based on experience), and the garbage can model (random problem-solution mixing).
- 12.9: Biases in Decision Making
- This page discusses various biases impacting decision-making, particularly in differentiating programmed from non-programmed decisions. Key biases include overconfidence, anchoring, confirmation, hindsight, representative, availability, commitment, and randomness errors, which can result in flawed judgments. It emphasizes the need for managers to recognize these biases to improve decision-making effectiveness and the role of creativity in developing unique solutions.
- 12.10: Creativity in Decision Making
- This page discusses the promotion of creativity in decision making, highlighting its importance in innovation. It identifies traits of creative individuals and organizational factors that encourage creativity, such as supportive culture and risk-friendly leadership. The text outlines three components of creativity: expertise, creative thinking skills, and intrinsic motivation.
- 12.11: Group Decision Making
- This page explores the significance of group decision-making in organizations, highlighting its role in fostering creativity through collective expertise. It discusses challenges like groupthink and conformity, and introduces tools such as the Nominal Group Technique and the Delphi Technique to improve decisions. It also reviews decision-making models, particularly bounded rationality, and factors affecting decisions like performance evaluations and time constraints.
- 12.12: Introduction to Data and Managerialism in Decision Making
- This page highlights the significance of statistics, data analytics, data science, and managerialism in making informed business decisions, emphasizing that complex choices require analysis of multiple external factors. It advocates for using data and statistical insights over pure intuition, positioning these concepts as crucial tools for success in contemporary decision-making.
- 12.13: Using Data to Make a Decision
- This page outlines effective data use in decision-making, emphasizing the importance of defining strategy, identifying key areas and data, collecting relevant information, and analyzing it for insights. It advocates for informed decision-making with awareness of biases and stresses the need to present findings to stakeholders to drive actions that align with organizational goals.
- 12.14: Big Data in Decision Making
- This page explores big data's impact on retail decision-making, detailing a retailer's shift to a modern management system that leverages extensive customer data. It addresses challenges of big data—volume, velocity, variety, and veracity—and showcases how companies like Kroger and Red Roof Inn utilize data to boost customer engagement and refine marketing strategies, resulting in substantial revenue growth.