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Business Organization Team Presentation
- 2. Index 1. What is decision making? 2. Decision making process 3. Importance of decision making 4. Types of decision making 5. Modelsofdecisionmaking 6. Toolsandtechniquestoimprovedecisionmaking 7. Biases and errors in decision making
- 3. What is decision making? “The process of deciding about something important, especially in a group of people or in an organization in order to arrive at a solution for a given problem”
- 4. Analyze situation Decision Making Process Identify a problem or opportunity Gather information Develop optionsEvaluate alternatives Select a preferred alternative Act on the decision Evaluate decision effectiveness
- 5. Importance of decision making Tencent • Largest service portal site in China • Founded in November, 1998 1. Implementation of managerial function 2. Pervasiveness of decision making 3. Evaluation of managerial performance 4. Successful operation of business 5. Helpful in planning and policies 6. Selecting the best alternative
- 6. Importance of decision making Implementation of managerial function QQ Mail • Providing many functions, but slow and spam-flooding Deleting unnecessary functions Optimization for higher speed And so on
- 7. Importance of decision making Pervasiveness of decision making Q Zone • Blog service developed in 2005 • Development process was a series of decision making 2006 ▷ Starting browser mode ▷Introduction of popular animation ▷ Q Zone WAP test release 2007 ▷ Introduction of information center and circle of friends 2008 ▷Private log, friends log release ▷Album revision release 2009 ▷QQ Farm application official release ▷Q zone and QQ information integration
- 8. Importance of decision making Evaluation of managerial performance QQ Music • Introduced ‘Green Diamond Membership’ • Provides unlimited music downloading service and other peripheral services. • Able to hold customers with in QQ services. • Decision making evaluates the managerial performance.
- 9. Importance of decision making Successful operation of business WeChat • A mobile instant messaging application released in 2011 • Improvements : Voice Intercom, ‘view of the people nearby’ function, etc. • No. 1 app in Asia in 2013
- 10. Importance of decision making Helpful in planning and policies • No plans and policies can be developed and implemented without decision making • Appropriate decision must be made from so many alternatives Should I go this way? Or that way?
- 11. Importance of decision making Selecting the best alternative • Decision making = Selecting the best alternative • Selecting best one of the alternatives by evaluating advantages and disadvantages of every alternatives.
- 12. Types of decision making • Programmed decision • Routine and repetitive • Develops specific ways to handle them • Ex) What should I eat for lunch? What should we do with this client’s complain?
- 13. Types of decision making • Non-programmed decision • Novel and poorly defined • No procedure exists for solving the problem
- 14. Decision making models 1. Rational Comprehensive Model 2. Incremental Theory 3. Mixed scanning
- 15. Decision making models Rational Comprehensive Model ?! Objectives are clear and ranked in accord with their importance Costs and benefits; advantages and disadvantages are evaluated Alternative that maximizes the attainment of goals, values and objectives is chosen
- 16. Decision making models Incremental Model Decisions are constructed by the mixture of intuition, experience, rule of thumb.
- 17. Decision making models Mixed scanning Combination of rational comprehensive model and incremental theory.
- 18. Techniques to improve decision making Majority Rule Technique • Simple, fast, easy and fair in terms of representation • May lead to inappropriate decision
- 19. Tools and techniques to improve decision making Nominal Group Technique • Anonymous suggestions are graded by individuals and the suggestion with highest point is chosen and delivered. 10 7 8 6 A
- 20. A 가☆ 1 Tools and techniques to improve decision making Brainstorming Technique • Encourages participation of every member to decision- making process to foster creativity &♬國 +
- 21. • Group provides written responses to a questionnaire • Decision is made with the result Tools and techniques to improve decision making Delphi Technique
- 22. Biases and errors in decision making Confirmation Bias DATA No! • Looking for information that supports existing beliefs and rejecting data that goes against the belief. • Serious problem in making statistic-based decision DATA
- 23. Biases and errors in decision making Anchoring • Making decision on information gained early in the decision making process. It’s not that big!
- 24. Biases and errors in decision making Overconfidence Bias • Too much faith in your own knowledge and opinions. • Combined with anchoring bias I can make it!
- 25. Biases and errors in decision making Gambler’s Fallacy • Expecting past events to influence the future • Odds are always the same It’s my turn to win!
- 26. Biases and errors in decision making Fundamental Attribution Error • The tendency to blame others when things go wrong, instead of looking objectively at the situation. I hate this car’s brake!