Chapter 14 Decision Making and Control

Decision Making How to Make Good Decisions Problem Solving Building Decision Making Skills Controlling
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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
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Approaches to Decision Making

Rational (Logical Approach) Intuitive Approach Unable to decide (Indecisive Approach) Impulsive Approach

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 4 and are most important

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
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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
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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 7

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

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
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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).
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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

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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
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Guidelines for Building Decision Making Skills

Dont 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
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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.
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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
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