MODULE 3:

DECISION MAKING AND

PROBLEM SOLVING
Group 1:

Glady Mae Pomasin

Quidda Landingin
Usha Claire Gonce
Donna San Buenaventura
1 Non-programmed Versus
Programmed Decisions

2 Steps in Problem Solving and

Decision Making

3 Bounded Rationality and

Influences on Decision Making
 LESSON 1
Non-programmed

Versus

Programmed Decisions

1 Non-programmed Decisions

• these are new and complex decisions that necessarily require

thought and creativity.

2 Programmed Decisions
• easy and routine decisions with a predetermined
decision-making strategy.
 Steps in Problem Solving
LESSON 2 and Decision Making

1 Identify and diagnose the 4 Choose one alternative solution

problem

Develop alternative solutions Implement the solution

2 5

Evaluate alternative Evaluate and control

3 solutions 6
 Bounded Rationality and
LESSON 3 Influences on Decision
Making

According to Boyce (2021)

• Bounded rationality refers to the cognitive limitations of consumers.

• According to bounded rationality, we make suboptimal decisions due to three

factors – cognitive limitations, imperfect information, and time constraints.
Suboptimal refers to
a level or standard
• When faced with complex choices, consumers may opt to ‘satisfice’ instead of that is below the
optimal (best
spending time and effort analyzing the situation – leading to a sub-optimal possible) level or
choice. standard.
 Nine Factors that Contributes to the Limited Rationality of
our Decision Making Process
INTUITION
Intuition is a form of experience-
based knowledge or reasoning that
weighs and balances data
inadvertently and naturally.
Intuition also employs a strategy
for drawing any conclusion that is
not based on the standard step-by-
step method. Intuition can also be
based on feelings or experiences.
PERSONALITY AND
COGNITIVE
INTELLIGENCE
The temperament and
emotional intelligence of the
decision-maker have an
impact on his or her capability
to find creative solutions to
problems. The willingness to
accept risks is an important
part of a person's personality.
Key Factors of Emotional
Intelligence
EMOTIONAL
INTELLIGENCE
1. Self -
Emotional intelligence is defined awareness
as the ability to recognize one's
own emotions, empathize with 2. Self-
others, and control one's emotions management
in order to enhance one's life.
People's capacity to communicate
and understand their sentiments is
largely influenced by their
intelligence. 3. Social awareness
4. Relationship
management
 Nine Factors that Contributes to the Limited Rationality of
our Decision Making Process

POLITICAL CONSIDERATIONS DEGREE OF CRISIS AND

QUALITY AND ACCESIBILITY
OF INFORMATION CERTAINTY CONFLICT
In ideal circumstances, managers There are three aspects to a The term "crisis management"
make management decisions person's level of confidence: refers to a strategy for being
Making an effective decision based on the objective merits of certainty, risk, and uncertainty. more effective at making
usually necessitates the use of competing solutions. In fact, When the facts are thoroughly decisions in times of crisis.
high-quality, credible data. The political variables such as
understood and the outcome Prepare ahead of time for how
ability to provide high-quality alliances, favoritism, or the
decision-maker's desire to
can be properly predicted, you will react to the scenario.
data to management is the most there is a degree of Visualization serves as a
maintain favor with those in
sufficient basis for information confidence. simulation of real-world events.
power influence some decisions.
systems.
 Nine Factors that Contributes to the Limited Rationality of
our Decision Making Process
VALUES OF THE PROCRASTINATION
DECISION-MAKER
Procrastination leads to
In the end, all decisions are inaction and indecisiveness,
which is a major cause of
determined on values. self-defeating behaviors.
Another concept that
Procrastination is a deeply
influences decision-making ingrained habit of behavior
is the pursuit of excellence. that may be motivated by a
fear of making a mistake.
1. Decisive
(one choice, less
DECISION-MAKING information)
STYLES
2. Flexible
Decision styles indicate themselves
in two major ways: how knowledge (many choice, less
is used and how options are information)
formed. When it comes to data,
some managers have a tendency of
poring over large quantities of
information before making a 3. Hierarchic
decision. The alternative method, (one choice, more
also known as satisficing decision, information)
is to make a decision as soon as
there is enough information. 4. Integrative
(multiple choices, more
information)
Problem-solving and decision-making are essential
components of effective management. Even though
all employees have to encounter these processes, it
is necessary for a manager to make appropriate
decisions and solve problems with ease, as this is
part of their job responsibilities.

Thank you
and have a
great day!