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Programmed Decisions Procedure – a series of interrelated sequential steps that can be used to respond to a well-structured problem Rule – an explicit statement that tells managers what they ought or ought not to do Policy – a general rule that establishes parameters for making decisions Decision-Making Styles Differences in the way people think (rational and intuitive) and their tolerance of ambiguity, that is they want things to be ordered and consistent (low to high) Decision-Making Styles Directive: low ambiguity, rational thinking Logical and efficient; make quick decisions that focus on the short term Analytic: high ambiguity, rational thinking Prefer to have complete information before making decisions and will consider many options Behavioral: low ambiguity, intuitive thinking Work well with others, are open to suggestions, care for workers Conceptual: high ambiguity, intuitive thinking Focus on the long run, look for creative solutions Making Decisions in Groups Groups often represent the people who will be most affected by the decisions being made Because of their expertise, these people are often the most qualified to make decisions that will affect them. Advantages of Group Decisions “Two heads are better than one” More complete information Diversity of experiences and perspectives Generate more alternatives Increased acceptance of decision Disadvantages of Group Decisions Time-consuming Minority domination Members are not equal Ambiguous responsibility Who’s actually responsible for the final outcome? Pressure to conform Groupthink –the withholding by group members of different views in order to be in agreement Poorer quality decisions are made, because there is less critical thinking and the group cannot appraise alternatives objectively Improving Group Decision Making Brainstorming An idea-generating process that encourages alternatives while withholding criticism Nominal group technique Group member meet, but operate independently Electronic
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