CHAPTER THREE

Decision Making
 Meaning of decision making
 Rational decision making process
 Types (programmed and non programmed decisions).
While we start to learn how and practice decision-making skills as
a child, the process of good decision-making becomes more
important during adolescence and young adulthood. The decisions
made as individuals get older may impact the rest of their lifetime.
The consequences of bad decisions can adversely change the course
of their life, or of their family’s lives.
 The more important the decision is, the more critical
the thinking skills must be…
 Determine the importance of a decision by the term of
the consequences.
 If the consequences of your decision are long-term, then
spend more time on the process and follow each step of
decision-making carefully.
 Good Decision-making is learned…
 To make good decisions, you must use good judgment.
That means you must understanding the possible
consequences of your choice. It is a parent’s job to use
their judgment until you have proven that you have good
judgment. You have to LEARN good decision-making
skills.
 WE USE VALUES, GOALS, &
STANDARDS TO MAKE DECISIONS
A value is a STRONG BELIEF.

INTRINSIC, internal, or core values

are personal qualities that we
treasure.
.
EXTRINSIC or external values are
things we consider worthwhile or
give direction to our life.
Examples might include: Good
health, popularity, good health,
education, country/patriotism,
friends, family, religion, money or
the things money can buy.
We learn values, usually from our parents. Sometimes
our values are influenced by friends, teachers, coaches,
advisors religious leaders, siblings, . . . etc.
 Decision Making Styles
High
Analytical Conceptual

Directive Behavioral
Low
Tasks and Technical People and Social
Concerns Concerns
Value Orientation
 Programmed and Nonprogrammed Decisions: A
Comparison
Nonprogrammed
Programmed Decisions
Decisions
Repetitive, routine, Novel, complex, difficult,
Types of frequent; decisions made infrequent; decisions
problems according to specific require original thinking
procedures
Depend on policies and Require creativity,
Proce- rules intuition, tolerance for
dures ambiguity

Business firm: Periodic Business firm:

reorders of inventory Diversification into new
Health care: Procedure for products and markets
Examples admitting patients Health care: Purchase of
University: Necessary GPA experimental equipment
for good academic University: Construction of
standing new classrooms
 The Ideal Decision-making Process
STEP 1 STEP 2
Define the problem Determine the requirements that
the solution to the problem must
meet
STEP 3
Establish goals that solving STEP 4
the problem should Identify alternatives that
accomplish will solve the problem
STEP 5
Develop valuation criteria STEP 6
based on the goals Select a decision-making
Tool
STEP 7
Apply the tool to select a STEP 8
preferred alternative Check the answer to make
sure it
solves the problem
The Decision-making Process (adapted from Baker et al, 2001)
Factors Influencing
Decision Making “I like risks
and I’m really
bright.”
“Let’s wait
before Personality and “I’m great at
deciding.”
cognitive intelligence hunches.”

Procrastination Intuition
“I’ve got
integrity.” “I can read
people
Emotional great and
Values intelligence control my
emotions.”
“Our backs are
to the wall, and
Decision
Quality of
we disagree.” Maker information
Crisis and conflict “The IS group
Degree of Political is feeding me
considerations great stuff.”
uncertainty
“What does my
“Looks like a boss want me
sure thing.” to decide?”
 Providing
challenges

Encouraging Allowing
risk taking freedom
Establishing a
Creative
Atmosphere
Involves. . .
Providing Allocating
organizational ample
support resources

Providing
encouragement Creativity!
Suggestions to Build Creativity
1. Keep an idea notebook

2. Stay current in your field

3. Listen to other people

4. Learn to think in the five senses

5. Improve your sense of humor

6. Adopt a risk-taking attitude

7. Develop a creative mental set

8. Identify your most creative times

9. Be curious about your environment

10. Step back when faced with a creativity block

 6.7

Suggestions for Improving Group Problem-Solving

1. Have a specific 2. Rely on

agenda and adhere qualified group
to it members
5. Build
consensus so
the decision is
more likely to be
implemented 3. Have the
4. Provide
summaries for leader share
each major point decision-making
authority
 6.8
The Nominal Group Technique

1. Small group is
assembled

6. Alternatives are
rated and best- 2. Leader presents
rated one is a problem
chosen

5. Group clarifies 3. Members write

and evaluates all down ideas
suggestions individually

4. Each participant
presents one idea
to group
Adapted from Exhibit 6.6
Group decision-making
 Data suggests that innovative groups possessed
high levels of both minority dissent and
participation in decision making
 Note four requirements of effective decision
making in a group:
 Focus on process
 Understand requirements for an effective choice
 Assess positive qualities of alternative solutions
 Assess negative qualities of alternative solutions
 Suggests openness, acceptance of dissent?
 Advantages and Disadvantages of
Group-Aided Decision Making
Advantages Disadvantages
1. Greater pool of knowledge 1. Social pressure
2. Different perspectives 2. Minority domination
3. Greater comprehension 3. Logrolling
4. Increased acceptance 4. Goal displacement
5. Training ground 5. “Groupthink”