2. KEY TOPICS
Introduction
Typical Approaches to Decision Making
Effective Decisions
Individual vs. Group Decisions
Groupthink
Problem Definition
Decision Making Example
Factors Hindering Group Decision Making
6 C’s of Decision Making
Conclusion
3. What is Decision Making?
Decision making is the act of choosing one
alternatives from among a set of alternatives.
We have to first decide that a decision has to
be made and then secondly identify a set of
feasible alternatives before we select one.
4. Typical Approaches to
Decision Making
Stay with the status quo
Change as little as possible
Delay and avoid making the decision
Choose the first likely solution
Encourage considered and thoughtful decision
making where all of the alternatives are given a fair
and thorough hearing
5. Effective Decisions
Resources utilized effectively
Time well used
High quality decision (if possible to know)
Implemented by all group members
Problem solving ability of group enhanced (or not
lessened).
6. Individual vs. Group Decisions
Advantages of group decision making
Process gain
More likely to identify and reject incorrect solutions
More accurate memory of facts and events
Greater informational resources
Increased commitment for implementation
Disadvantages of group decision making
Time
Groupthink
Other Effects
Group polarization
8. Decision-making Process
1. Identifying a problem
2. Identifying decision criteria
3. Allocating weights to criteria
4. Developing alternatives
5. Analyzing alternatives
6. Selecting an alternative
7. Implementing the alternative
9. Problem Definition
Problem is a discrepancy (difference) between an
existing and a desired state.
Identifying Decision Criteria
The word criteria, is defined as ” a standard by
which something can be judged “. A decision criteria
therefore, is the basis of a decision , which outlines
the relevant and important factors for a decision.
An implicitly, it also defines what is not important
10. Developing Alternatives
Involves defining the possible alternatives (or
choices) that would resolve the problem.
In our case the alternatives would be a list of
candidates or job applicants.
Analyzing Alternatives
Alternatives are rated and analyzed on the basis of the
criteria
The rating can be based on a specified scale, say 1-5
etc.
Rating may be subjective in nature and thus , may be
depend on the judgment of the individual(s)
11. Selecting an alternative
Involves choosing the best alternatives, based on the
above rating and analysis
Generally implies selecting the alternative with the
highest score.
Implementing the Alternative
Putting the decision into action
Involves clear communication of the decision to all
concerned and obtaining their commitment .
12. Decision Making Example
You are the head of a personnel department which
reports to the company president. The president has asked
you to make recommendations on how to change and update
the performance appraisal system. You are not sure about the
approach to take. Your specialty is selection and you desire
more information on performance appraisal. Fortunately,
three members of your staff are experienced with the various
aspects of performance appraisal. However, they rarely
agree with each other on the best way to achieve something
when it comes to performance appraisal. Fortunately, for this
project, these employees will not implement the
recommendations.
13. Factors Hindering Group
Decision Making
Lack of group maturity
Social loafing
Free riding
Defensive avoidance
Groupthink
Poor conflict management
Egocentrism
Lack of heterogeneity
Premature closure
Lack of individual incentives
14. 6 C’s of Decision Making
1. Construct.
2. Compile.
3. Collect.
4. Compare.
5. Consider.
6. Commit.
15. Construct a clear picture of precisely what must be
decided.
Compile a list of requirement that must be met.
Collect information on alternatives that meet the
requirements.
Compare alternatives that meet the requirements.
Consider the” what might go wrong “ factor with each
alternative.
Commit to a decision and follow through with it.
16. Conclusion
Groups have advantages over individuals in making decisions
Groups must work hard to leverage these advantages
How decisions are made impacts
Quality
Acceptance/implementation
Amount of time needed
Thoughtful decision making requires groups using these steps
Defining Problem
Gathering Information
Formulating and Considering Alternatives
Deciding on a solution