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Decision Making is not easy $? It must be done amid - ever-changing factors - unclear information - conflicting points of view Copyright (c) 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Decision Making is not easy $? It must be done amid - ever-changing factors - unclear information - conflicting points of view Copyright (c) 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Decision Making is not easy $? It must be done amid - ever-changing factors - unclear information - conflicting points of view Copyright (c) 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
2 Managerial Decision Making Decision making is not easy
It must be done amid ever-changing factors unclear information conflicting points of view Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 3 Managerial Decision Making Decision Characteristics Decision-making Models Steps Executives Take Making Important Decisions Participative Decision Making Techniques for Improving Decision Making in Todays Organizations Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 4 Decisions and Decision Making Decision = choice made from available alternatives Decision Making = process of identifying problems and opportunities and resolving them
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 5 Categories of Decisions Programmed Decisions Situations occurred often enough to enable decision rules to be developed and applied in the future Made in response to recurring organizational problems Nonprogrammed Decisions in response to unique, poorly defined and largely unstructured, and have important consequences to the organization Ethical Dilemma: The No-Show Consultant Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 6 Certainty, Risk, Uncertainty, Ambiguity
Certainty all the information the decision maker needs is fully available Risk decision has clear-cut goals good information is available future outcomes associated with each alternative are subject to chance Uncertainty managers know which goals they wish to achieve information about alternatives and future events is incomplete managers may have to come up with creative approaches to alternatives Ambiguity by far the most difficult decision situation goals to be achieved or the problem to be solved is unclear alternatives are difficult to define information about outcomes is unavailable Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 7 Conditions that Affect the Possibility of Decision Failure Organizational Problem Problem Solution Low High Possibility of Failure Certainty Risk Uncertainty Ambiguity Programmed Decisions Nonprogrammed Decisions Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 8
Selecting a Decision Making Model Depends on the managers personal preference Whether the decision is programmed or non-programmed Extent to which the decision is characterized by risk, uncertainty, or ambiguity Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 9 Three Decision-Making Models C Classical Model CAdministrative Model CPolitical Model Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 10 Classical Model Assumptions Decision maker operates to accomplish goals that are known and agreed upon Decision maker strives for condition of certainty gathers complete information Criteria for evaluating alternatives are known Decision maker is rational and uses logic Normative = describes how a manager should and provides guidelines for reaching an ideal decision Logical decision in the organizations best economic interests Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 11 Administrative Model - Two concepts are instrumental in shaping the administrative model Bounded rationality: people have limits or boundaries on how rational they can be
Satisficing: means that decision makers choose the first solution alternative that satisfies minimal decision criteria Herbert A. Simon How nonprogrammed decisions are made--uncertainty/ambiguity Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 12 Administrative Model Managers actually make decisions in difficult situations characterized by non-programmed decisions, uncertainty, and ambiguity
Decision goals often are vague, conflicting and lack consensus among managers; Rational procedures are not always used Managers searches for alternatives are limited Managers settle for a satisficing rather than a maximizing solution intuition, looks to past experience
Descriptive = how managers actually make decisions--not how they should
How nonprogrammed decisions are made--uncertainty/ambiguity Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 13 Political Model Closely resembles the real environment in which most managers and decision makers operate Useful in making non-programmed decisions Decisions are complex Disagreement and conflict over problems and solutions are normal Coalition = informal alliance among manages who support a specific goal Closely resembles the real environment Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 14 Characteristics of Classical, Political, and Administrative Decision Making Models Classical Model Administrative Model Political Model Clear-cut problem and goals Vague problem and goals Pluralistic; conflicting goals Condition of certainty Condition of uncertainty Condition of uncertainty/ambiguity Full information about Limited information about Inconsistent viewpoints; ambiguous alternatives and their outcomes Alternatives and their outcomes information Rational choice by individual Satisficing choice for resolving Bargaining and discussion among for maximizing outcomes problem using intuition coalition members Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 15 Six Steps in the Managerial Decision-Making Process Evaluation and Feedback Diagnosis and Analysis of Causes Recognition of Decision Requirement Development of Alternatives Selection of Desired Alternative Implementation of Chosen Alternative Decision- Making Process O O O O O O O O Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 16 Diagnosis and Analysis of Causes Diagnosis = analyze underlying causal factors associated with the decision situation
Managers make a mistake if they jump into generating alternatives without first exploring the cause of the problem more deeply Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 17 Underlying Causes - Kepner /Tregoe What is the state of disequilibrium affecting us? When did it occur? Where did it occur? How did it occur? To whom did it occur? What is the urgency of the problem? What is the interconnectedness of events? What result came from which activity?
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 18 Selection of Desired Alternatives Risk Propensity = willingness to undertake risk with the opportunity of gaining an increased payoff
Implementation = using managerial, administrative, and persuasive abilities to translate the chosen alternative into action Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 19 Decision Styles Differences among people with respect to how they perceive problems and make decisions Not all managers make decisions the same Directive style Analytical style Conceptual style Behavioral style Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 20 Personal Decision Framework Situation: Programmed/non- programmed Classical, administrative, political Decision steps Decision Choice: Best Solution to Problem Personal Decision Style: Directive Analytical Conceptual Behavioral Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 21 Directive Style People who prefer simple, clear-cut solutions to problems Make decisions quickly May consider only one or two alternatives Efficient and rational Prefer rules or procedures Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 22 Analytical Style Complex solutions based on as much data as they can gather Carefully consider alternatives Base decision on objective, rational data from management control systems and other sources Search for best possible decision based on information available Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 23 Conceptual Style Consider a broad amount of information More socially oriented than analytical style Like to talk to others about the problem and possible solutions Consider many broad alternatives Relay on information from people and systems Solve problems creatively
Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 24 Behavioral Style Have a deep concern for others as individuals Like to talk to people one-on-one Understand their feelings about the problem and the effect of a given decision upon them Concerned with the personal development of others May make decisions to help others achieve their goals Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan 1. Dalam melakukan pekerjaan atau tugas- tugas kelas, saya mencari : a. Hasil-hasil praktis b. Solusi terbaik c. Pendekatan atau ide-ide kreatif d. Kondisi kerja yang baik
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Latihan (2) 2. Saya menikmati pekerjaan : a. Teknis dan terdefinisi dengan baik b. Memiliki variasi yang beragam c. Membiarkan diri saya untuk mandiri dan kreatif d. Melibatkan bekerja secara lebih dekat dengan orang-orang lain 26 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan (3) 3. Jenis manusia yang paling saya sukai untuk bekerja dengan saya adalah : a. Orang yang memiliki energi dan ambisius b. Memiliki kapabilitas dan teratur c. Terbuka terhadap ide-ide baru d. Mudah setuju dan penuh kepercayaan 27 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan (4) 4. Ketika saya memiliki masalah, biasanya saya : a. Bersandar pada apa yang telah terjadi di masa lalu b. Menerapkan analisis secara hati-hati c. Mempertimbangkan pendekatan kreatif yang bervariasi d. Mencari kesepakatan dengan orang lain 28 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan (5) 5. Saya memiliki keistimewaan dalam hal : a. Mengingat tanggal dan fakta-fakta b. Memecahkan masalah yang kompleks c. Mencari sebanyak mungkin solusi d. Bergaul dengan orang lain 29 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan (6) 6. Ketika saya tidak memiliki banyak waktu, saya : a. Membuat keputusan dan bertindak cepat b. Mengikuti rencana-rencana atau prioritas utama yang telah ditentukan c. Perlu waktu dan menolak penekanan d. Bertanya pada orang lain untuk mendapatkan petunjuk maupun dukungan 30 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan (7) 7. Dalam situasi sosial, pada umumnya saya : a. Berbicara pada orang lain b. Berpikir tentang apa yang sebaiknya dibicarakan c. Melakukan pengamatan d. Mendengarkan percakapan 31 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan (8) 8. Orang lain menganggap saya : a. Agresif b. Disiplin c. Kreatif d. Suportif
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Latihan (9) 9. Yang paling tidak saya sukai adalah : a. Saat keluar kendali b. Mengerjakan pekerjaan yang membosankan c. Mengikuti aturan-aturan d. Ditolak oleh orang lain 33 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan (10) 10. Keputusan yang saya buat biasanya : a. Langsung dan praktis b. Sistematis atau abstrak c. Luas dan fleksibel d. Sensitif terhadap keperluan orang lain 34 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Latihan (11) Jawaban : a direktif b analitis c konseptual d perilaku 35 Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 36 Participation in Decision Making Helps gauge the appropriate amount of participation for subordinates in process
Leader Participation Styles - Five levels of subordinate participation in decision making ranging from highly autocratic to highly democratic Vroom-Jago Model Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 37 Participation in Decision Making EDiagnostic Questions - Decision participation depends on the responses to seven diagnostic questions about
the problem the required level of decision quality the importance of having subordinates commit to the decision
Vroom-Jago Model Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved. 38 Seven Leader Diagnostic Questions C How significant is the decision? C How important is subordinate commitment? C What is the level of the leaders expertise? C If the leader were to make the decision alone at what level would subordinates be committed to the decision? C What level is the subordinates support for the team or organizations objectives? What is the members level of knowledge or expertise relative to the problem? C How skilled or committed are group members to working together? Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.
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