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Decision Making

The document discusses decision making in organizations. It covers types of decisions, rational decision making models with steps like defining problems, generating alternatives, evaluating alternatives, choosing the best option, implementing decisions, and evaluating decisions. Factors that impact decision making like information asymmetries are also discussed.

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Bree Bobbadilla
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0% found this document useful (0 votes)
13 views18 pages

Decision Making

The document discusses decision making in organizations. It covers types of decisions, rational decision making models with steps like defining problems, generating alternatives, evaluating alternatives, choosing the best option, implementing decisions, and evaluating decisions. Factors that impact decision making like information asymmetries are also discussed.

Uploaded by

Bree Bobbadilla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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1

COMMENTS USERS FILES

DECISION MAKING
100,000 100,000 100,000

PAGE VIEWS CLICKS REVENUE

2014 2015 2016 2017 2018 2019


$100,000.00
2

Opening Prayer

ST. JOHN BAPTIST DE LA SALLE PRAY FOR US


LIVE IN OUR HEARTS, FOREVER
3

Nuggets of
Wisdom
4
ACTIVITY: LOST IN THE SEA (Who will survive?)
Situation: Pretend you are in a shipwrecked and
stranded in a lifeboat. DECIDE five things out of the
Given are the things you can carry if you will be list which you are going to take
landing in an island with you . Make a list in the
1. Mosquito net order of your preference. Write
2. Fishing rod your answer on a coupon bond
3. Shaving mirror or show me board.
4.Rope After all had decided the
5.Chocolate bars choices… I will show you the
6. Water container weight of each things. Write
7. Can of petrol the weight of your selected
8. Bottle of rum things opposite them then sum
9. Radio
it up. It will be your score
10. Sea chart
5

Your score:
1 Shaving mirror. (One of your most powerful tools, because you can use it to 10
signal your location by reflecting the sun.
2 Can of petrol. (Again, potentially vital for signalling as petrol floats on water and 9
can be lit by your matches.)
3 Water container. (Essential for collecting water to restore your lost fluids.) 8
4 Chocolate bars. (A handy food supply.) 7
5 Fishing rod. (Potentially useful, but there is no guarantee that you're able to 6
catch fish. Could also feasibly double as a tent pole.)
6 Rope. (Handy for tying equipment together, but not necessarily vital for 5
survival.)
7 Bottle of rum. (Could be useful as an antiseptic for treating injuries, 4
8 Radio. (Chances are that you're out of range of any signal, anyway.) 3
9 Sea chart. (Worthless without navigational equipment.) 2
10 Mosquito net. 1
MODULE OBJECTIVES 6
YOUR SUBTITLE HERE

Point out the importance Describe the different Solve existing school
of decision making to decision-making problems by making
school administrators for models that can be decisions using
used in making appropriate
an effective educational
optimum decisions in techniques
administration the workplace
What decision making is all about? 7

Oxford Advanced Learner’s Dictionary defines the term decision


making as the process of deciding about something important,
especially in a group of people or in an organization.

“Trewatha & Newport defines decision making process as :


Decision-making involves the selection of a course of action
from among two or more possible alternatives in order to
arrive at a solution for a given problem”.

Decision making process can be regarded as check and


balance system that keeps the organisation growing both
in vertical and linear directions
8

DATA
“asymmetries ”
of
INFORMATION

In an organizational context, it is worthwhile to note that decision


making needs the right kind of information, the complete information
and the ability to synthesize and make sense of the information
9

The overriding rule in decision


making is that the decision
maker ought to have
legitimacy and authority over
the people who he or she is
deciding upon. In other words,
decision makers succeed only
when their decisions are
honored and followed by the
people or groups that the
decision impacts.
10

STEPS IN DECISION MAKING


TAKE
FOLLOW
UP ACTION
PLAN AND
CHOOSING EXECUTE
BEST
DEVELOPIN POSSIBLE
G OPTION.
GATHERING AND
INFORMATION WEIGHING
AND OPTION
DEFINING COLLECTING
THE DATA
PROBLEM
11

TYPES OF DECISIONS
PROGRAMMED DECISIONS
Trigger solutions that have already been determined by past
experiences as appropriate for the problem in question
Example: maintaining a necessary grade point average for
academic standing

NON PROGRAMMED DECISIONS STRATEGIC DECISIONS


Made by committees of upper
No established procedure for level administrators (school
handling the problem, either superintendents,, college
because it involves issues that presidents) and important long-
have never been encountered term implications for the
before or because it is organization. Reflects a consistent
complex or extremely pattern for directing the
important. organization according to its
Example: construction of new philosophy , vision and mission.
school facilities Example, growing an enrolment
at a specific annual rate
RATIONAL MODEL OF DECISION MAKING 12

IDENTIFYING THE PROBLEM CHOOSE ALTERNATIVES


1. Good alternative

4
FOUR STEPS IN PROBLEM IDENTIFICATION:
1 1. Measure results
2.
3.
Bland alternative
Mixed alternative
2. Compare results to objectives
4. Poor alternative
3. Determine the significance of the difference
5. Uncertain alternative
4. Communicate threshold differences to
administration.

IMPLEMENTING DECISION
2 GENERATING ALTERNATIVES 5 Decision maker already considered
All possible alternatives should be included no all conceivable problems that may be
matter how ridiculous they may first appear associated with the implementation
and choice may be made later The of the decision
administrator should seek information
regarding each alternative and its various
consequences
EVALUATING DECISION
EVALUATING ALTERNATIVES • Determine extent to which the
3 A. Evaluate the value of each 6 solution achieved the objectives.
• Measuring actual performance
alternative, positive or negative against target objectives
B. Certainty exists
C. Risks exists
13

BOUNDED RATIONALITY MODEL

Frequently school administrators are


not aware that problems exist. Even
they generate a partial list of
when they are, they do not
systematically search for all possible alternative solutions to the
alternative solutions. problem based on EXPERIENCE,
Describe the perspective of the INTUITION. ADVICE FROM
decision maker who would like to OTHERS AND CREATIVE
make the best decision but normally THOUGHTS
settles for less than the optimal

They
.
are limited by TIME HERBERT SIMON coined the
CONSTRAINTS, COST, and term BOUNDED
RATIONALITY MODEL also
the ABILITY TO PROCESS
referred to as
INFORMATION
ADMINISTRATIVE MODEL
BOUNDED RATIONALITY MODEL 14

Decisions will always be based on


The ultimate decision
1 an incomplete and inadequate
comprehension of the true nature
of the problem being faced
regarding which alternative to
choose must be based on some

4
criterion other than
maximization or optimization
because it is impossible to
determine which alternative is
optimal
Decision makers will never
succeed in generating all
2 positive alternative solutions for
consideration
Conflicting goals of
different stakeholders

Alternatives are always


5 can restrict decisions,
forcing a compromising
solution
evaluated incompletely because
3 it is impossible to predict
accurately all consequences
associated with each alternative
15
VROOM-YETTON MODEL- FIVE
DECISION MAKING STYLES
AUTOCRATIC I CONSULTATIVE I
Solve the problem or make the Share the problem with relevant
decision yourself using the subordinates individually getting
information available at the their ideas and suggestions, then
present time. make the decision yourself.
Decision may or may not reflect
subordinate’s influence
AUTOCRATIC II
Obtain necessary information CONSULTATIVE II
from subordinates then decides
on a solution to the problem Share the problem with subordinates
yourself. They do not play a role in a group meeting, obtain ideas and
in definition or generating suggestions , make decisions which
alternative solutions may or may not reflect subordinates
influence

GROUP
Share the problem with your subordinates.as a group.
Together you generate and evaluate alternatives and
attempt to reach agreement o a solution
16
GROUP DECISION MAKING TECHNIQUE

BRAINSTORMING
Generating ideas and alternative solutions but does
not evaluate..
NOMINAL GROUP TECHNIQUE
Concerned with generation of ideas and evaluation
done in a structured manner

DELPHI TECHNIQUE
Relies completely on a nominal group who does not engage face-to
face discussions. Inputs are solicited by mails allowing a poll of large
numbers of experts
DEVIL’S ADVOCACY
Antidote for groupthink, used as critiquing technique after an alternative
solutions to a problem have been developed
17

DECISION EFFECTIVENESS (DECISION FEASIBILITY)

QUALITY ACCEPTANCE TIMELINESS


Refers to the extent to which Refers to the amount of tie
Refers to the extent decisions are accepted by the available to the decision
to which the subordinates who must maker to arrive at a
decision is effective. implement them. Subordinates decision. Participatory
Achieved through a involvement in decision decision making is costly in
participatory making is advantageous for terms of time-suited for
decision -making promoting acceptance and long term development.
style than from an better quality decisions Urgency needs a more
autocratics style.. autocratic style
18

DECISION EXERCISE (Assignment)


You are the principal of a small rural high school and it is one , week away from the
beginning of the state basketball tournament. The basketball team has a record of 20-
0 for the season and is the favorite for championship. You have just caught the star
player of the basketball team, an all state candidate, drinking an alcoholic beverage
at a local restaurant. This is the player’s second offense. According to the board of
education policy, a second offense carries a penalty of a four-week suspension from
the team. The policy has not been consistently enforced by the various athletic
coaches.

Based on the situation, as the school administrator, what will you decide?
1. What type of decision making will you use?
2. Illustrate/explain the steps that you will undertake.
3. Conclude on the effectiveness of your decision

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