Transcript 11 11 - McGraw-Hill Education

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11
Decision-Making
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Learning Objectives
 Define the phases in the decision-making process.
 Identify some models and styles of behavioral decision-making.
 Present the participative decision-making techniques.
 Discuss the creative process and group decision-making
techniques.
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Starting with
Best-Practice Leader’s Advice
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 J. W. Marriott, Jr., on the Strategic Decisions Spurring
Growth of the Hotel Chain
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Became president of Marriott Corp in 1964 and CEO in 1972
Marriott Int’l operates under an umbrella of 18 brands
Father laid foundation for growth and success
Marriott built on fundamental ideals of service
Strategic decisions account for phenomenal 25 year growth
Expansion past core brand was important strategic decision
Other major driver of growth is geographic expansion
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The Decision-Making Process
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Behavioral Decision-Making
 Decision Rationality
 Models of Behavioral Decision-Making
 The Economic Rationality Model
 New Rational Techniques: ABC, EVA, and MVA
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Behavioral Decision-Making
(Continued)
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Behavioral Decision-Making
(Continued)
 Models of Behavioral Decision-Making (continued)
 The Social Model
 Simon’s Bounded Rationality Model
 Judgmental Heuristics and Biases Model
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Behavioral Decision-Making
(Continued)
 Decision-Making Styles
 Directive Style
 Analytical Style
 Conceptual Style
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Behavioral Decision-Making
(Continued)
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Behavioral Decision-Making
(Continued)
 Decision-Making Styles (continued)
 Behavioral Style
 Style Implications
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Participative
Decision-Making Techniques
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Participation techniques are being applied informally on
an individual or a team basis or formally on a program basis.
There are many positive and negative attributes of
participative decision-making.
One problem is the tendency toward pseudoparticipation.
Perhaps the biggest advantage is that the participative
approach to decision-making recognizes that each person
can make a meaningful contribution to the attainment of
organizational objectives.
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Creativity and
Group Decision-Making
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 The Process of Creativity
 Psychological Definition and Analysis of Creativity
 Creativity Techniques for Management Decision-Making
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Creativity and
Group Decision-Making
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(Continued)
 Group Decision-Making
 The Delphi Technique
 The Nominal Group Technique
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Questions
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