1. 1
Decision Making and Control
• Decision Making
• How to Make Good
Decisions
• Problem Solving
• Building Decision
Making Skills
• Controlling

2. 2
Elements in Managerial Decisions
• Decision: A conscious choice
among alternative courses
of action.
• Therefore the 3 elements
are:
– A conscious choice among
alternatives
– A specific purpose
– A course of action

3. 3
Approaches to Decision Making
• Rational (Logical
Approach)
• Intuitive Approach
• Unable to decide
(Indecisive Approach)
• Impulsive Approach

4. 4
Kinds of Decisions a Supervisor Makes
• Routine data based
decisions
• Serious decisions having
important consequences
• Emergency decisions
requiring distinctiveness
• Problem- Solving
• Decisions beyond your
authority
* It is essential to recognize which decisions need to be made now and are most
important

5. 5
A Simple Version of Decision Making
(The Logical Approach)
• Define the problem (conditions
and limitations) and the set of
objectives
• Analyze the problem: fact finding
• Develop alternative solutions:
brainstorming
• Decide on the best solution
• Convert the decision into action
• Follow up

6. 6
Pattern of Problem Solving
• Describe the problem
• Search out the cause, get
the facts
• Define the real problem
and set objectives
• Develop alternative
solutions
• Decide on the best solution
• Implement the decision
• Follow up

7. 7
Participative Problem Solving
• Argument for Group Decision Making :
– You get more info. And expertise relevant to
the decision
– You get more good ideas and can generate
more and better alternatives
– People thinking together can arrive at better
decisions because of the stimulation and
interplay of different points of view
– Participants are more committed to carrying
out
– Coordination and communication are simpler
and better because everyone understands

8. 8
Participative Problem Solving
• Criticism of group decision
making:
– It takes longer in a group
– There is usually a dominator in a
group
– Group participants get involved in
winning arguments and showing
off
– If consensus is required people
may conform to get the meeting
over
– Consensus leads to mediocre
decisions

9. 9
Group Decision Making Works Best When:
• Members are accustom to
working together as a team
and having differing expertise
and point of view but common
goals
• The leader is skillful at keeping
the meeting on target
• The group is rewarded for
making good decisions

10. 10
Solving Peoples Problems
• Personal problems are not
yours to resolve but
LISTENING can help.
• Keep your own emotions
out of it.
• Try to identify the real
problem.
• If possible eliminate friction
(ex. Food Expeditor).

11. 11
Win-Win Problem Solving
• Win-Lose: You win, worker loses
• Lose-Win: You lose, worker wins
(retreat and appeasement, no
stand)
• Lose-Lose: The compromise
• Win-Win problem solving means
you find a decision that satisfies
both of you.
– Include worker from the
beginning: From defining the
problem to carrying out an
agreement

12. 12
Guidelines for Building Decision Making
Skills
• Be sure of your authority for
making decisions
• Accept responsibility fully
• Distinguish what's important
• Make the decision at the time it is
needed
• Be alert to signs of problems
needing solutions
• Keep an open mind

13. 13
Guidelines for Building Decision Making
Skills
• Don’t solicit advise but do
consult your supervisor when a
problem is beyond your ability
to solve
• Make sure that you are not
part of the problem
• Learn from your mistakes
• Evaluate your decisions when
carried out

14. 14
Controlling
• Controlling: process by which
supervisors measure, evaluate, and
compare results to goals, and standards
previously agreed upon, and take
corrective action when nessicary.
• Major area is COST.
• Productivity: efficiency which which
inputs are converted into outputs.
• Productivity standards: defined
acceptable quantity of work expected.
• Use control techniques.

15. 15
Controlling Techniques
• Require records and reports
• Develop and enforce performance
standards
• Develop and enforce productivity
standards Develop and enforce
departmental policies and procedures
• Observe and correct employee actions
• Train and retrain employees
• Discipline when appropriate
• Be a good role model