a cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities
Decision making
perspectives in decision making
a. psychological
b. cognitive
c. normative
*these perspectives are according to the decision theory in psychology
deciding CONSCIOUSLY & WITH FEELINGS
Psychological decision making
- examining individual decisions in the context of a set of NEEDS, PREFERENCES, VALUES that individual has or seeks
decision making regarded as a continuous process integrated in the interaction with the environment
Cognitive decision making
- deciding based on EXPERIENCE, KNOWN KNOWLEDGE
deciding based on HUMAN STANDARDS
Normative decision making
- the analysis of individual decisions concerned with the logic of decision-making, or communicative rationality
types of decision making
a. logical
b. naturalistic
*according to multiple criteria decision analysis (formulated the decision-making paradox)
applying the knowledge in a given area to make informed decisions
Logical decision making
uses intuitive decision making
Naturalistic decision making
characteristics of a good decision
the human element/s in decision making
a. Prejudices
b. Peer pressure
c. Personal interest
d. Emotions
*these elements cloud the decision-making process
T/F:
human factors are not harmful, they should be recognized & given appropriate considerations
TRUE
this balances action, providing the participants the power & independence to consider the impact & act accordingly
Disclosure
- often an effective control method
steps in decision making
recognizing the problem
T/F:
the later the problem is detected the better priorities are set
FALSE
how to investigate the problem?
The following may be done to shed light in the nature & seriousness of the problem:
defining the problem
“Once a problem has been defined the solution becomes obvious to all” - Lyndon Johnson
- formulating the correct question = 80% of the solution
deviation
one-time, random human error
effectual problem
symptom or surface sign that may hide the real cause of the problem
causal problem
the root cause of the problem
analytical tools to define a problem
a. root-cause analysis
- problems, causes, effects, solutions
b. fish bone analysis
- herring bone = causes
- factors = materials, methods, measurements, machines, environment, personnel
c. SWOT analysis
- strengths, weaknesses, opportunities, threats
the key for this step is to be aware of as many alternative solutions as possible
Identification of alternatives
*committee system
= slow, ineffective
= one of the best sources for ideas to resolve organizational problems
evaluation of each alternative
T/F:
the tendency to quickly adopt to the first viable solution may be time efficient but may lead to a lower quality decision/solution
TRUE