BA 351 Managing Organizations

1. BA 351Managing Organizations Decision Making

2. Write Smart Co. has a very specific decision making process that it follows for handling client problems that has been quite successful for the firm. The first stage is _______, in which the team members at Write Smart help the client figure out exactly what the problem is that it faces. • Identifying and diagnosing the problem • Evaluating the results • Generating alternative solutions • Implementing the decision

4. Introduction • Making decisions under conditions of risk and uncertainty is one of the most important activities that managers engage in. • Generally, there is a lack of information and a limited amount of time available to make the decision. • Procrastinating and not making a decision sometimes has greater risk than making it.

5. Rational or ? Creative

6. Rational or Exercise: With your partner solve the two problems on pages 1& 2 Youwill have 15 minutes to complete both exercises… Creative

7. Solution - Warehouse RFP

8. Creative Problem Solving Assessment Complete Pages 3 - 5

9. Advantages and Disadvantages of Group Decision Making Advantages • Increased acceptance • Greater pool of knowledge • Different perspectives • Greater comprehension • Training ground Disadvantages • Social pressure • Minority domination • Logrolling • Goal displacement • “Groupthink”

10. The Abilene Paradox with Dr. Jerry B. Harvey

11. Decision Making The process of identifying problems and opportunities and resolving them. Management decisions can be made by managers, teams, or individual employees, depending on: The scope of the decision, and The design and structure of the organization.

12. Characteristics of Management Decision Making Programmability Decision Scope Uncertainty Conflict Risk Crisis

13. Stages of Decision Making Identifying and diagnosing the problem Generating alternative solutions Selecting the best alternative Evaluating alternatives Implementing the decision Evaluating the decision

14. Typical problems that require decisions • A high level of employee turnover. • A reduction in firm profits. • Unacceptable levels of “shrinkage” in a store. • Lower than planned quality of finished goods. • An unexpected increase in workplace injuries. • The invention of a new technology that can increase the productivity of the workforce.

15. Evaluating Alternatives • Decision criteria should be related to the performance goals of the organization and its subunits. • Decision criteria can include: • Costs • Profits • Timeliness • Whether the decision will work • Fairness

16. Evaluating Alternatives(cont) • A practical way to apply decision criteria is to consider: • Decisionquality – aspect of decision making based on such facts as costs, revenues, and product design specifications. • Decision acceptance – aspect of decision making based on people’s feelings.

17. Approaches to selecting the best alternative • Optimizing – selecting the best alternative from among multiple criteria. • Satisfying – selecting the first alternative solution that meets a minimum criterion.

18. Managing Group Decision Making Leadership Style Devil’s Advocate Role Stimulating Creativity

19. Leader Decision Making Styles • Decide and persuade • Discover facts and decide • Consult and decide • Consult with group and decide • Group decision

20. Decision Making Techniques to Stimulate Group Creativity Brainstorming Storyboarding Delphi Technique Nominal Group Technique (NGT)

21. Skills for Decision Making Process • Time management skills • To make good decisions, managers need time to understand the problem and develop creative solutions. • Delegation skills • Managers who know how to delegate are able to accomplish more than those who feel the need to be involved in every decision, no matter how trivial.

22. Why Leaders Don’t Delegate Insufficient time Perception that the job is too important Leader’s belief that he/she can do it better Leader enjoys doing the job Lack of confidence in subordinates Fear subordinates might do job better Concern that the Boss will think the leader isn’t working

23. Effective Time Management Practices • Plan a list of things that need to be done today. • Plan weekly, monthly, and annual schedules of activities. • Schedule difficult and challenging activities when you are at your highest level of energy and alertness. • Set deadlines.

24. Effective Time Management Practices(cont) • Answer phone messages and e-mail in batches during a lull in your work schedule. • Have a place to work uninterrupted. • Do something productive during non-productive activities.

25. Effective Delegation(cont) Keep communication channels open. Allow employees to do the task the way they feel comfortable doing it. Trust employees’ capabilities. Check on the progress of the assignment. Hold the employee responsible for the work. Recognize what the employee has done, and show appropriate appreciation.

26. Rules for Successful Delegation Describe the task Outline expected results Discuss resources Confirm understanding Solicit ideas Establish methods of working and reporting

27. Guidelines for Giving Direction Use familiar words Define new terms Use logical sequencing Provide a visual model or demonstration Check for understanding Allow the listener to clarify instructions

28. DELEGATION IS... ACCOMPLISHING ORGANIZATIONAL PURPOSES THROUGH THE PROPER DEVELOPMENT OF PEOPLE