Chapter Two

Learning Objectives
After finish this chapter, the students will be able to:

1. Define & differentiate between programmed decisions & non-

programmed decisions (1- JUB'Z CREW BERHAD ).
2. Discuss the importance of recognition and timeliness in decision
making (1- JUB'Z CREW BERHAD ).
3. State the steps followed in the scientific method in decision
making (2- PENEROKA UTHM CORPORATION ).
4. Name several potential advantages & disadvantages of group
decision making (3- CUBE CORPORATION ).
5. List several traps that supervisors frequently fall into when making
decisions (4- JAGUAR SDN. BHD. ).
6. Discuss the role that the supervisor plays in establishing a
creative environment (5- AEROS ENTERPRISE ).
7. Describe several group-oriented that can be employed by
supervisors to encourage creativity (6-ABC123 SDN. BHD. ).
8. Itemize some of the more frequently encountered barriers to
organizational creativity (6- ABC123 SDN. BHD. ).
 Decision Making Versus
Problem Solving
• Decision making is the process of choosing
from among various alternatives
• Problem solving is the process of
determining the appropriate responses or
actions necessary to alleviate a problem
• Problem solving necessarily involves
decision making BUT not all decisions
involve problems
 Recognition and the
Timeliness of the Decision
• Recognizing the need to make a
decision is a natural first step
• Timeliness is also important
– A supervisor should neither rush nor
procrastinate
• Decisions require different types of
timeframes and there is no magic
formula
Steps in the Decision Making
Process
A. Be alert to indications and symptoms of
problems
– Supervisors must be aware of their surroundings
and cues that a decision is needed
B. Tentatively identify the problem
– This is often the most difficult step
– Distinguishing between symptoms and the problem
itself is important
– Treating only the symptoms is short range, at best
C. Collect facts and redefine the problem if
necessary
Steps in the Decision Making
Process
D. Identify possible alternatives
– Any decision is only as good as the best
alternative considered
– Beware using only the obvious or previously
used alternatives
– Try to generate at least four alternatives
– Ask for help from others who may understand
the problem
 Steps in the Decision Making
Process
E. Gather and organize facts concerning identified
alternatives
– It is usually impossible to have all the facts
– Supervisors must often make decisions based on available
facts, which can be obtained with reasonable cost and effort
– Too much information may be as much a problem as too little
information
F. Evaluate possible alternatives
– Generally this includes factors such as cost, time to
implement, hazards, etc.
Steps in the Decision Making
Process
G. Choose and implement the best alternative
– Often there is no clear winner
– Doing nothing may be a viable alternative
– Once the decision has been made, the supervisor must
take steps to make sure it is implemented. These steps
include assigning responsibilities, communicating, and
establishing controls
H. Follow up
H. Did the decision achieve the desired results
I. If not, why and what needs to be done about it
 Group Decision Making
• Advantages:
– Groups have more collective knowledge than
individuals
– Groups will come up with more alternatives
– Groups will better understand and support
decisions if they are involved
• Disadvantages:
– Groups take more time
– One individual may dominate/control the group
– Group often accept the first workable alternative
 Practical Traps to Avoid
When Making a Decision
• Making all decisions big decisions
• Creating crisis situations
• Failing to consult with others
• Never admitting a mistake
• Constantly regretting decisions
• Failing to utilize precedents and policies
• Failing to gather and examine available data
• Promising what cannot be delivered
• Delaying decisions too long
 Making Creative Decisions
• Creativity does not require revolutionary thinking
– It requires a fresh approach to problems and an
atmosphere which accepts new ideas

A. The creative person

A. Everyone can be creative to some extent
B. Characteristics of creative people include:
intelligence, curiosity, expressive and sensitive,
positive self-image, tolerance, nonconformity, thrill-
seeking tendencies, and persistence
 Making Creative Decisions
B. Improving personal creativity
B. Try and think “outside the box”
C. Steps to improve personal creativity
include:
– concentrating
– striving for quantity of ideas (not dealing with
quality until later)
– sleeping on it
– Persistence
– Implement the idea
 Making Creative Decisions
C. Establishing and maintaining a creative climate
C. Supervisors must be sensitive to the environment they
create
D. Three specific techniques are:
C. Brainstorming: general rules for this group creativity
process are spelled out. These include specifying the
problem, avoiding criticisms, etc
D. Brainwriting: this is a variation of brainstorming using
written ideas which are then exchanged
E. Input-output scheme: another technique to tap into the
group ideas. This was created by General Electric
 Barriers to
organizational creativity
D. Factors which may inhibit organizational
creativity include:
– fear of failure
– premature criticism
– the supervisor’s shadow (trying to think like the supervisor)
– distractions and interruptions
– protection of status quo (institutionalized resistance to
change)
– hierarchical idea filter (passing through too many levels)
– appropriated ideas (others taking credit)
– lack of support
– excessive togetherness (encourages everyone to think the
same way)