Chapter 09 Managerial Decision Making

Six Steps in the Managerial Decision Making Process

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Personal Decision Framework

• Directive Style: used by people who prefer simple, clear-cut solutions.
• Analytical Style: used by managers who like to consider complex solutions based on as much data as they can gather.
• Conceptual Style: used by people who like to consider a broad amount of information, more socially oriented.
• Behavioral Style:often the style adopted by managers having a deep concern for others.

• Situation:
• Programmed/non-programmed
• Classical, administrative, political
• Decision steps

• Decision Choice:
• Best Solution to Problem

• Personal Decision Style:
• Directive
• Analytical
• Conceptual
• Behavioral

Participation in Decision Making Diagnostic Questions

• Decision significance
• Importance of commitment
• Leader expertise
• Likelihood of commitment
• Group support for goals
• Group expertise
• Team competence

New Decision Making Approaches

• Lean, Don’t Punish
• Know When to Bail
• Practice the Five Whys
• Build Collective Intuition
• Engage in Constructive Conflict

Information Technology

• The hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information.

Characteristics of High-Quality Information

• Time
• Timeliness
• Currency
• Frequency
• Time Period

• Content
• Accuracy
• Relevance
• Completeness
• Conciseness
• Scope
• Performance

• Form
• Clarity
• Detail
• Order
• Presentation
• Media

• Source: Adapted from James A. O’Brien, Introduction to Information Systems, 8th ed. (Burr Ridge, Ill, Irwin, 1997),284-285.