After reading the material in this chapter, you should be able to:
LO10.1 Compare and contrast the rational model of decision making, Simon’s normative model, and the garbage can model
LO10.2 Review the eight decision-making biases.
LO10.3 Discuss the thrust of evidence-based decision making and its implementation principles.
LO10.4 Describe the model of decision-making styles, the role of intuition in decision-making and the stages of the creative process.
LO10.5 Summarize the pros and cons of involving groups in the decision-making process.
Lo10.6 Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making.
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Making DecisionsChapter TenAfter reading the material in this chapter, you should be able to:LO10.1 Compare and contrast the rational model of decision making, Simon’s normative model, and the garbage can modelLO10.2 Review the eight decision-making biases.LO10.3 Discuss the thrust of evidence-based decision making and its implementation principles.LO10.4 Describe the model of decision-making styles, the role of intuition in decision-making and the stages of the creative process.LO10.5 Summarize the pros and cons of involving groups in the decision-making process.Lo10.6 Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making.Models of Decision MakingDecision makingidentifying and choosing solutions that lead to a desired state of affairsModels of Decision MakingThe Rational Model proposes that managers use a logical four-step approach to decision making.Nonrational Models of Decision MakingNonrational models Attempt to explain how decisions are actually madeDecision making is uncertainDecision makers do not possess complete informationDifficult for managers to make optimal decisionsEvidence-Based Decision MakingEvidence-based decision making (EBDM) represents a process of conscientiously using the best available data and evidence when making managerial decisionsA Model of Evidence-BasedDecision Making (EBDM)Seven Implementation PrinciplesTreat your organization as an unfinished prototypeNo brag, just factsSee yourself and your organization as others doEvidence-based management is not just for senior executives Seven Implementation Principles (cont.)Like everything else, you still need to sell itIf all else fails, slow the spread of bad practiceThe best diagnostic question: what happens when people fail?Decision Making StylesA Model of IntuitionCreativityCreativity process of using intelligence, imagination, and skill to develop a new or novel product, object, process, or thoughtAn Ethical Decision TreeGroup InvolvementMinority dissent extent to which group members feel comfortable disagreeing with other group members, and a group’s level of participation in decision makingAdvantages and Disadvantages of Group-Aided Decision Making