Learning outcome 1. Differences between programmed and non-programmed decisions 2. 4 important decisions making styles 3. 4 rational decision making styles 4. advantages and disadvantages of group decision making

1. FHBM1114 MANAGEMENT
TOPIC 5 : INDIVIDUAL & GROUP DECISION MAKING
PRESENTED BY :
CHIA WEY JIAN
LEE YU SENG
TEY SHU SHAN
WONG CHUN MENG

2. Meaning of Decision Making :
Decision
•is a choice made between two or more available
alternatives.
Decision making
•is the process of choose the best alternative
for reaching objectives.

3. Types of Decisions
Programmed Decisions :
• Routine and repetitive
• Eg : habit, clerical routine work
Non-programmed Decisions :
• Non-routine, unfamiliar circumstances, unique
• Eg : judgement, creativity

4. Decision Making Styles
• are differences among people with respect to how they perceive
problems and make decisions

5. Directive Style
• Action-oriented, focus on facts
• Efficient and logical
• Making fast decision

6. Analytical Style
• Careful, like lots of information and alternative choices
• Consider more information
• Take longer to make decisions
• Able to cope changing situations

7. Conceptual Style
• Rely on intuition and have a long-term perspective
• tend to focus on people or social
• Very broad out look
• Focus on long run
• Good at finding creative solutions

8. Behavioral Style
• Most people-oriented
• Work well with others
• Receptive to suggestions
• Prefer verbal to written information
• Avoid conflict, concern others

9. Knowing Your Decision Making Style
• Make adjustments to the situation and results.
• Helps understand yourself.
• Able to influence others by being aware of styles.
• Prove yourself to be a valuable asset as a leader.

10. Rational Decision Making
• Multi-step process for making choices between alternatives.
• Explains how managers should make decisions.
• Assumes managers will make logical decisions that will be
optimum in furthering the organization’s best interests.
• Four steps associated.

11. Step 1: Identify the Problem and Opportunity
• Problems or difficulties that inhibit the achievement of goals.
• Opportunities: situation that present possibilities for
exceeding existing goals.
• Diagnosis : analysing the underlying causes.

12. Step 2: Think Up Alternative Solutions
• After identified problem and opportunity, need to come up
with alternative solutions.
• For a programmed decision- easy and obvious.
• For a non-programmed decision- more creative, more better.

13. Step 3: Evaluate Alternatives & Select a Solution
• Not only according to cost and quality, but according to the
following question :
1. Is it ethical?
2. Is it feasible?
3. Is it ultimately effective?

14. Step 4: Implement & Evaluate the Solution
Chosen
• Successful Implementation:
1. Plan Carefully.
2. Be Sensitive to those affected.
• Evaluation – follow up and evaluate the result

15. 4 Possibilities if the solution is not working?
i
• Give it more time
ii
•Change it slightly
iii
•Try another alternative
iv
•Start over

16. Reason that Hindrances of Perfectly Rational
Decision Making
Complexity
Limitation of
Time & Money
Imperfect
Information
Abundantly of
Information
Different
priorities
Conflicting
goals

17. 5 Advantages of Group Decision Making
Greater pool of knowledge
Different Perspectives
Intellectual Stimulation
Better understanding of decision rationale
Deeper commitment towards the decision

18. 4 Disadvantages of Group Decision
Dominate &
Intimidate
Groupthink
Satisficing
Goal
Displacement

19. Group decision making are less efficient
•Need a lot of time to make decision
•Time pressures or serious effect of a decision
•Use less information and fewer communication
channels
•Probability of a bad decision increase
Group size affects the decision quality
•Larger group, lower quality of the decision

20. They may be too confident
•More confident about their judgement and
choices liability because it can lead to
groupthink
Knowledge counts
•Group members know a good deal about the
relevant issue The group leader has the ability
to weight member’s opinion

21. 4 Types of Group Problem Solving Techniques
Brainstorming
Nominal
Group
Technique
Delphi
Technique
Computer-
aided decision
making

22. BIAS Decision
Overconfident
Ignoring the
situation
Basing
decision on
prior decision
belief
Not enough
information

23. THE END