Narrative Report

Reporters:

 Malaga, Sarah Jane

 Ricardo, Julie Ann S.

Topic Outline

 Decision-Making Process

o Characteristics o Strategic Decision Making

o Decision Styles o Strategic Decision-making
Process

Learning Objectives

 To understand the different decision styles;

 To analyze a case;
 To apply the decision making process; and
 To analyze cases using different decision analysis

Discussion

Decision making is an essential part of planning. Decision making and problem solving
are used in all management functions, although usually they are considered a part of the planning
phase. According to Delaney (1982), decision-making may be defined as “the process of
identifying and choosing alternative courses of action in a manner appropriate to the demands of
the situation”. The engineer manager must adapt a certain procedure designed to determine the
best option available to solve certain problems. Decision-making, according to Nickels, “is the
heart of all the management functions.”

Managers will be faced with different types of problems and decisions as they do
their jobs. Depending on the nature of the problem, the manager can use different types
of decisions.

Well-structured Problems

Some problems are straightforward. The goal of the decision maker is clear, the
problem is familiar, and information about the problem is easily defined and complete.

Examples:

 Customer wanting to return a purchase to retail store.

  A supplier's being late with an important delivery.
 A news team's responding to an unexpected and fast-breaking event.
 College's handling of a student wanting to drop a class.

Poorly Structured Problems

Many organizational situations involve poorly structured problems, which are

problems that are new or unusual and for which information is ambiguous or incomplete.

Examples:

 The selection of an architect to design a new corporate manufacturing facility in

Bangkok.
 Whether to invest in a new unproven technology or whether to shut down a money-losing
division.

CHARACTERISTICS

1. Decision making is a goal-oriented process.

2. It aims at achieving certain specifies goals of the organization
3. It is the selection process in which best alternatives courses of action is chosen from
amongst alternative courses of action.
4. Is a continue process because the manager is required to take decisions continuously for
different activities.
5. Decision making is considered both science and art.
6. Responsibilities of manager at different levels of management
7. Decision making involves deep and careful thinking and hence it is a mental process.
8. Decision making can be either positive or negative
9. Decision are made for further course of action based on the past experiences and present
conditions.

DECISION STYLES

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

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

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

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

Strategic Decision Making

Strategic decision-making is the process of charting a course based on long-term

goals and a longer term vision.

Strategic decision-making is about evaluating the pros and cons of a situation and
developing a step-wise approach to realize your goals.

Steps in Strategic Decision Making

1. Define the Problem - Consider these questions:

 What is the problem? Can it be solved? Is this the real problem or a symptom of a larger
one?
 Does it need immediate attention or can it wait? Is it likely to go away by itself? Can I
risk ignoring it?
 What is my objective? What’s to be accomplished by the decision?

2. Gather Information - Seek information on how and why the problem occurred:
 Stakeholders: Talk to individuals or groups affected by the problem
 Facts and data: research, benchmarking studies, interviews with credible sources,
observed events
  Constraints: Lack of funding, resources, cultural barriers
 Ask: What am I not seeing? What have I missed?

3. Develop and Evaluate Options - Generate a wide range of options:

 Choose options that show promise, need more information, can be combined or
eliminated, or will be challenged.
 Weigh advantages/disadvantages of each. Consider cost to the business, potential loss of
morale/teamwork, time to implement the change, whether it meets standards, and how
practical the solution is.
 Predict the consequences of each option. (“If/Then” or “What if?”)
 Ask: What is the worst solution?

4. Choose the Best Action - Select the option that best meets the decision objective:
 Consider factual data, your intuition, and your emotional intelligence when deciding a
course of action.
 Accept that the solution may be less than perfect.
 Consider the middle ground. Compromising on competing solutions may yield the best
decision.

5. Implement and Monitor the Decision - Develop a plan to implement and monitor
progress on the decision:
 Step-by-step process or actions for solving the problem
 Communications strategy for notifying stakeholders
 Resource identification/allocation
 Timeline for implementation
 Measurements/benchmarks to gauge progress

6. Evaluate and Communicate

 Most decisions affect others in your life or at your workplace.

References

Zoro, R. R. (2021, October 3). Engineering Management 1 - University of the Philippines -

StuDocu. StuDocu. Retrieved October 22, 2021, from
https://www.studocu.com/ph/document/university-of-the-philippines-system/construction-
engineering-and-management-i/engineering-management-1/18065092

https://blog.corpedgroup.com/blog/five-steps-to-making-strategic-decisions?
fbclid=IwAR27osnf4MoetqADG40l78xHZVpHQKM5ATfE9ODgTYSd0q1HJ9i_CB6gKPs