Problem Solving & Decision MakingChapter 8Organizational Behavior: ManagingPeople and Organizations,Ninth EditionGregory Moorhead, Ricky W. GriffinThe Na!re of Decision Making"Decision MakingThe #rocess of choosing from among several alernaives"Problem Solving$ s#ecial form of decision%making in &hich he iss!e is !ni'!e(i re'!ires develo#ing and eval!aing alernaivesDecisions )ased on *re'!ency"Programmed Decision+ne ha rec!rs ofen eno!gh for a decision r!le o be develo#ed"Decision R!le$ saemen ha ells a decision%maker &hich alernaive o choose based on he characerisics of he decision si!aion"Non#rogrammed decision+ne ha rec!rs infre'!enly and for &hich here is no #revio!sly esablished decision r!leDecisions )ased on ,nformaion -ondiions",nformaion Re'!ired for Decision Making,nformaion ranges across end#oin condiions-ondiion of -erainy"+!comes of each alernaive are kno&n-ondiion of Risk"-erainy of an o!come is !nkno&n b! here is eno!gh informaion o esimae #robabiliies of vario!s o!comes-ondiion of .ncerainy"There is ins!fficien informaion o esimae he #robabiliy of #ossible o!comesFigure 8.2 $lernaive +!comes .nder Differen ,nformaion -ondiionsThe Decision%Making Process /con0d1Rational ApproachRational ApproachPersonal ApproachPersonal ApproachBehavioral ApproachBehavioral ApproachPractical ApproachPractical ApproachApproaches to Decision MakingApproaches to Decision MakingThe Decision%Making Process /con0d1"The Raional $##roach$ sysemaic, se#%by%se# #rocess for making decisions"Sae he si!aional goal",denify he #roblem"Deermine he decision y#e"Generae alernaives"2val!ae alernaives"-hoose an alernaive",m#lemen he #lan"-onrol3 meas!re and ad4!sThe Decision%Making Process /con0d1"The Raional $##roach /con0d1Srenghs"*orces decision in a logical, se'!enial manner",n%de#h analysis enables choose on he basis of informaion raher han emoion or social #ress!reWeaknesses"Rigid !nderlying ass!m#ions ofen !nrealisic",nformaion limied by ime or cos consrains, manager0s abiliy o #rocess informaion"No all alernaives easily '!anified"+!comes !nkno&n d!e o !n#redicabiliy of f!!reThe Decision%Making Process /con0d1"The )ehavioral $##roach$ss!mes decision makers o#erae &ih bo!nded raionaliy raher han &ih #erfec raionaliy")o!nded raionaliy3 decision making based !#on a meaningf!l s!bse of relevan informaion-haracerisics"Proced!res and r!les of h!mb red!ce !ncerainy"S!b%o#imi5ing(acce#ing less han bes o!come"Saisficing(choosing firs%enco!nered alernaive ha solves he #roblemThe Decision%Making Process /con0d1"The Pracical $##roach-ombines he se#s of he raional a##roach &ih he condiions in he behavioral a##roach o creae a more realisic a##roach"6ybrid $##roachesManagers !se a combinaion of raional, behavioral, and #racical a##roaches o make decisionsResearch has sho&n ha s#eed in decision making is no indicaive of he consideraion of fe&er alernaives by managers.The Decision%Making Process /con0d1"The Personal $##roach,ndivid!al decision making can be vie&ed as a #rocess of conflic resol!ion"The 7anis%Mann 8-onflic Model9 -haracerisics1. Deals only with important life decisions2. Procrastination and rationalization are human mechanisms for avoiding decision making3. The fear of making an unsound decision can be a deterrent to making any decision. !t provides for self"reactions#. Decision makers can be ambivalent about alternativesRelaed )ehavioral $s#ecs of Decision MakingPolitical ForcesntuitionRisk Propensit!Escalation o" Co##it#entEthics-reaiviy, Problem Solving, and Decision Making"-reaiviyThe abiliy o generae ne& ideas or o conceive of ne& #ers#ecives on e:ising ideas;ey iss!es" -reaiviy and he individ!al" The creaive #rocessSe#s in he -reaive Process" Pre#araion" ,nc!baion" ,nsigh"