A C T E R IS T IC

CHA R
A N A G E R IA L
S OF M E
C IS IO N S , T H
DE
STA G E S O F
IO N M A K I N G
DEC IS By Group 5:
Matanguihan, Marvin
Laylo, Diana Lean
Macatanong, Johaimah
 Learning
Objective
s;
●

●
t h e k in d s of
● Describes u w ill f ac e as
o
decision y
rs.
a manage
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e th e Ste ps In
● Summariz tional”
k ing “ R a
Ma
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Decisions
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e p it f a lls you
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● Recognize id w hen
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g d e c i s
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 Characteristics of Managerial Decision

Lack of Uncertai Risk Conflict

Structur nty
e
 Structure
Uncertainty Conflict
and Risk
Lack of

• the usual state of • Uncertainty- have • Oppose

affairs in insufficient information pressures
management to know the from
decision making. consequence of different
different action. sources.
• Programmed • Occurs at two
decisions- are • Certainty- have sufficient levels;
decisions that information to predict Psychological
have been precisely the conflict and
encountered consequences of one’s Conflict
and made action. between
before individuals or
• Non-programmed • Risk- state that exists group
•
decisions- new, when the probability of
novel, complex success is less than
decision having 100 percent and losses
no certain may occur.
 The Stages of
Making “Rational”
Decisions
Evaluating the decision

Implementing the decision

Making the choice

Evaluating alternatives

Generating alternative solutions

Identifying and diagnosing

the problem
 • recognize that a problem exists and must be solved.
▪︎problems- descrepancy between current state and;
▪︎past performance
Identifying and diagnosing the ▪︎current performance of other organizations
problem ▪︎future expected performance
▪︎decision maker must want to resolve the problem
and have the result to do so

• Ready-made solutions- ideas that have been tried

before.
Generating alternative ▪︎may follow the advice of others who have face
solutions similar problem

• Custom-made solutions- combining new ideas into

solution.
 • Determining the value of the alternatives
• Predict the consequences that will occur if the various
options are put into effect
▪︎managers should consider several types of
Evaluating alternatives
consequences
• Contingency plans- alternative courses of action that can
be implemented based on how the future unfolds
▪︎it is necessary to prepare for different scenarios
•
• Maximize- realizing the best possible outcome
▪︎requires searching thoroughly for a complete range of
alternatives
▪︎each alternatives is carefully assessed
▪︎compare one alternative to another
Making the choice
• Satisfies- choose an option that is acceptable although not
necessarily the best
▪︎compare the choice with the goal, not against other options
▪︎search for alternative ends when an “okay” solution is found
• Optimizing- achieving the best possible balance among several
goals.
 — those who implement the decision must:
▪︎understand the choice and why it is made
▪︎be committed to its successful implementation
— can’t assume that things will go smoothly during
implementation
Implementing the
▪︎identify potential problems
decision
▪︎identify potential opportunities
— always expect the unexpected
 Steps in
Determine how
Implementation plan things will look
when the decision
is fully operational

Order the step

Assign
necessary to
responsibility for
achieve a fully
each step to
operational
specific individuals
decision
Implementation plan

Estimate the time List the resources

needed for each and activities required
step to implement each
step
 • Collecting information on how well the decision is working
• Evaluation is useful whether the feedback is positive or
negative
Evaluating the decision • If decision appears inappropriate, the process cycles back
to the first stage

• Nothing can guarantee a “best” decision

• Must be confident that the procedures used are likely to
produce the best decision given the circumstances
The best decision ▪︎Vigilance- decision maker carefully and
conscientiously executes all stages of decision making
 Pitfalls managers should avoid in making
decisions according to Harvard Business
School Professor Len Schlesinger
1. Defaulting to Consensus

A consensus approach can be appropriate in some situations, but in others, potentially

lead to a lower evaluation of the issues at hand and less creative problem-solving.
To avoid this pitfall, it’s important to be clear at the outset of the process about how
decisions are going to get made and the roles people are going to play.

2. Not Offering Alternatives

This happens because the group reaches alignment prematurely, without looking at the
problem through different lenses and exploring other pathways for moving forward.
3. Mistaking Opinions for Facts

One of the key steps in the decision-making process is to set ground rules and ensure
everyone is aware of their role and how they can contribute. A significant part of that involves
establishing alignment within the group on the difference between facts and opinions.
To overcome this, managers should assign someone in the group with the task of
validating items presented as facts to keep conversations on track and moving in the right
direction.

4. Losing Sight of Purpose

Over the course of the decision-making process, managers and their teams can, at
times, get wrapped up in the intricacies of problem-solving and lose sight of the bigger picture.
To ultimately sell whatever decision is made to the larger organization, priorities and
goals need to be well-established and reiterated throughout the decision-making process.
5. Truncating Debate

“Absent to everybody bringing their whole best selves to the meeting and believing
they can engage in a wholesome conversation, the point of bringing a group together for a
decision where people aren’t going to express their point of view is a waste of time.”—
Schlesinger

Managers should facilitate an environment in which they feel safe and empowered
to offer their opinions and be involved in the decision-making process. It’s vital for managers to
establish group norms at the outset of the process to foster candor and debate, and make
sure everyone feels their voice is valued. The manager ought to make sure that everybody is
talking”. “It’s his or her responsibility to continually ensure that everybody is at the table and
believes they’ve been involved, because that same population is going to be responsible for
helping implement the decision.”—Schlesinger
Referrences;
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https://onedrive.live.com/view.aspx?resid=4D1DFF60FEB4A001!276&ithint
=file%2cpptx&authkey=!AH6vw_I6X0pPg-E
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https://online.hbs.edu/blog/post/decision-making-in-management
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THANK YOU!!!