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ลำดับตอนที่ #12 : [[R.S.]]Business Management::Chapter.8::16.12.11
Review Sheet of Business Management
Chapter 8 Test :: 16.Dec.11
Chapter.8 :: Decision-Making Skills [[Page.178]]
8-1 What is Decision Making? [[Page 180]]
- Managers constantly make decisions that affect the futures of their companies.
- Decision making is part of all the basic management functions: planning, organizing, staffing, leading, and controlling.
- Not all decisions are equally important. Some decisions are easy to make, some aren’t.
- To make decisions in difficult situations, managers may need to consult other people.
- There are 2 basic ways to make decisions: intuitively and rationally.
· Making decisions based on intuition or hunches is intuitive decision making.
ð Intuitive decision making holds great potential but it also offers the risk of regret if the ‘facts’ turn out differently than one might have thought.
ð Managers make the most successful intuitive decisions when they have considerable experience in particular area.
ð Managers also make intuitive decisions when there is no time to conduct research or to do further study on a particular situation.
· Making decisions based on factual information and logical reasoning is rational decision making.
ð Six steps to rational decision making are:
1. Recognizing the need for a decision
2. Determining how to go about making a decision
3. Gathering information to help make decision
4. Identifying possible alternatives
5. Evaluating each alternative
6. Selecting the best alternative
- Rational decision making is more scientific than intuitive decision making. It has systematic process and is based on evaluating factual information & data.
- To help get information to make the best rational decisions, managers may seek help by surfing the Internet.
- Higher-level managers have more flexibility to make decisions than lower-level managers.
- A company’s corporate culture influences decision making. Also, the employees the manager supervises can affect a manager’s ability to make decisions.
- Companies often must make decisions without all the facts; they face risk but they will have to try to minimize it.
- Managers need to make decisions at the right time; not too hasty or not too delayed.
- Knowing when to make a decision often is complicated because different decisions have different time frames.
- Economic and social values most affect decision making.
· Economic values involve placing emphasis on making money for a company.
· Social values involve making the lives of consumer, workers, or the community better.
- Team decision making is the process of resolving problems and issues by assigning several people with different backgrounds (accounting, administration, research, etc.) to a group
· Positive Aspects:
ð Sum total of the group’s knowledge is greater
ð Group possesses a wider range of alternatives in decision process
ð Participation in decision-making process increases acceptance of the decision by group members
ð Group members better understand the decision and the alternatives considered
· Negative Aspects:
ð One individual may dominate and/or control the group
ð Social pressures to conform can inhibit group members
ð Competition can develop to an extent that winning becomes more important than the issue itself
ð Groups have tendency to accept the first potentially positive solution while giving little attention to other possible solutions
- There are 5 types of management decision styles.
1. Autocratic. The manager makes the decisions alone, with little or no input from subordinates.
2. Semi-autocratic. The manager asks subordinates for information needed to make the decision, but still makes the decision alone.
3. Leading. The manager shares the situation with few selected subordinates and asks them individually for information & advice. The manager still makes the final decisions, which many or may not reflect the subordinates’ influence.
4. Collaborative. The manager meets with al subordinates as a group to discuss the situation. Information is freely shared but the manager still makes final decision.
5. Accommodating. Same as collaborative but the entire group makes the decision.
- Most managers prefer either the leading or collaborative style.
8-2 Making Effective Decisions [[Page 192]]
- To make creative decisions, managers follow these five basic steps:
1. Preparation. Manager investigates and make sure problems are understood
2. Concentration. Manager sets a timetable for solving the problem
3. Incubation. Manager looks at various options for solving the problem
4. Illumination. Manager finds an acceptable solution for the problem
5. Verification. Manager tests the solution for the problem.
- Even the most creative managers might find it difficult to be effective if their bosses are too controlling.
- Making creative decisions involves trust. Managers use several processes to encourage creative decision making.
· In brain storming a group of people come up with as many different ideas as possible to help solve a problem, without making judgments about those ideas.
ð Members of the group cannot criticize, praise, or question/discuss any ideas.
· In the brainwriting approach, a leader presents group members with a problem situation and asks the group to write down their ideas rather than say them aloud. The paper is passed around the group to let others add their own comments.
· Through wish lists, a leader tells a group to make believe they have the power to solve any problem because there are no physical or financial constraints.
- Managers should use all these techniques – brainstorming, brainwriting, and wish lists – to encourage creativity.
- A model is a framework for doing a particular task. Managers can use the Meyers model to come up with creative decisions to solve a problem. The Meyers model has 6 stages:
1. Recognizing: manager describes the problem/decision in writing
2. Fact Finding: manager should gathers additional information about the problem
3. Problem Finding: manager revisits the problem to encourage more solutions
4. Idea Finding: manager uses brainstorming to come up with alternative solutions
5. Solution Finding: manager evaluates the ideas and solution from stage 4
6. Acceptance Finding: manager figure out what needs to be done to reach solution
- The 4 basic barriers that prevent effective decision making are:
1. Complacency. Manager thinks the decision is easier than it really is
2. Avoidance. Manager denies importance of a problem
3. Panic. Manager becomes frantic trying to make a decision
4. Indecisiveness. Manager becomes unable to make final decision.
- When hiring a manager for a job, companies try to find someone who understands the barriers to effective decision making and who has demonstrated an ability to make sound decisions in previous jobs.
- With good decision-making tools, experience, and a calm, positive attitude, managers will learn to make sound decisions.
Ps. This chapter has a lot of things :c
But Goodluck on the exam !
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