Chapter 4:

MANAGERIAL DECISION MAKING

Presented by
DAO XUAN PHUONG TRANG
Lecturer
University of Education – Department of English
 OUTLINE
1 The decision-making process

2 Factors affecting decision making

The role of work team

3
and group methods in decision-making

4 Decision-making requirements

Worker participation
5
in the decision-making process
How managers
6
handle decision making in a crisis
 DEFINITION

Decision making is the process of generating and

evaluating alternatives, then making choices among
them.

Alternatives are the choices that the decision maker

has to decide on.
DECISION-MAKING
PROCESS

Goals &
Objectives
FACTORS AFFECTING
DECISION MAKING

13
WORK TEAM & GROUP METHODS
INVOLVED IN DECISION MAKING

Techniques Brainstorming

Nominal
grouping

Delphi
technique
 WORK TEAM & GROUP METHODS
INVOLVED IN DECISION MAKING
Brainstorming

• This is the idea-generating

technique in which a number
of persons present alternatives
without regard to questions of
feasibility or practicality.
 WORK TEAM & GROUP METHODS
INVOLVED IN DECISION MAKING
Nominal grouping
Statement of Discussions
Final ranking
the problem of revised list

Idea Preliminary
generation voting

Round-robin Clarification
recording of ideas
WORK TEAM & GROUP METHODS
INVOLVED IN DECISION MAKING
Delphi Technique
Problem presented to group members
1
by means of questionnaires asking for solutions
Each expert completes and
2
returns the questionnaires
Results compiled and provided to the experts,
3
along with a revised and more specific questionnaire

4 The experts complete the second questionnaire

The process continues

5
until a consensus emerges
DECISION-MAKING REQUIREMENTS

Decision
maker

Problem
Alternatives
content

Decision-
making
requirements

States of A decision-
nature making
problem

Payoff
relationships
 WORKER PARTICIPATION AND
THE DECISION-MAKING PROCESS
 HOW MANAGERS HANDLE
DECISION MAKING A CRISIS
Things NOT to do
1. Pretend that nothing
unusual is happening,
conduct business as
usual.
2. Over-react in crises.
3. Treating a crisis decision
like any other decision.
Things to do
1. Look out for situations
that could become
critical (prevent crises).
2. Stay calm during crises.
3. Accept additional risk
when making decisions
in times of crises.
4. Remember Murphy’s
Law: If anything can go
wrong, it will.
 ni ng!
f or l i ste
a nk you
Th