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As defined by Baker et al in their 2001 study, “efficient decision-making involves a series of steps that
require the input of information at different stages of the process, as well as a process for feedback.”
Retrospective decision-making processes refer to decision-making that occurs after an event or situation
has taken place. These processes involve evaluating and reflecting on past decisions and their outcomes in
order to learn from them and make better decisions in the future. The focus is on analyzing what went well,
what went wrong, and identifying lessons that can inform future decision-making.
The term "implicit favorite" refers to a concept in decision-making and psychology related to
preferences and biases. It describes a situation where individuals exhibit a subconscious or implicit
preference for a particular option or outcome over others, despite not explicitly expressing or
acknowledging that preference.
Implicit favorites can lead to biased evaluations and choices, as individuals may unconsciously
favor a particular option without objectively considering all available alternatives. This can
introduce unfairness, irrationality, or inconsistency in decision-making processes.
Types of decisions
Programmed Decisions:
- Repetitive and Routine: They are decisions that organizations or individuals encounter
frequently, and for which established procedures or guidelines exist.
- Pre-established Rules: Programmed decisions are made based on predetermined rules,
policies, or standard operating procedures (SOP).
- Objective and Clear Criteria: The decision criteria are often well-defined and quantifiable,
allowing decision-makers to compare alternatives and make consistent choices.
- Low Complexity: Programmed decisions are relatively simple and straightforward, as they
involve familiar situations and well-established responses.
- Short Decision-making Time: Due to the predefined rules and criteria, programmed
decisions can be made quickly and efficiently. Decision-makers can follow the established
procedures to arrive at a decision promptly.
Non-Programmed Decisions:
- Uncommon and Unique: Non-programmed decisions are uncommon and unique decisions
that arise in novel or complex situations. They do not have pre-established rules or
guidelines.
- No alternative is clearly correct.
- Lack of Predefined Procedures: Non-programmed decisions do not have pre-established
procedures or guidelines to follow. Decision-makers need to analyze the situation, explore
alternatives, and develop new approaches.
- High Complexity: Non-programmed decisions are generally more complex and challenging
than programmed decisions. They often involve significant uncertainty, multiple variables,
and require extensive analysis and judgment.
- Longer Decision-making Time: Due to the absence of predefined procedures, decision-
makers need to gather information, evaluate alternatives, and carefully consider the
potential outcomes before arriving at a decision.
In decision-making, values play a crucial role as they guide individuals in making choices and evaluating
options. Values comprise a guidance system for decision-making and permeate the entire process of choice.
Some of the basic properties of values are:
- Subjectivity: Values are subjective in nature, as they represent an individual's beliefs, preferences,
and judgments about what is important or desirable.
- Hierarchical: Values are often organized in a hierarchical manner, with some values considered
more important or fundamental than others.
- Stable and Enduring: Values tend to be relatively stable and enduring over time. They are deeply
ingrained in an individual's belief system and are resistant to change. However, values can evolve or
shift through experiences, personal growth, or changing circumstances.
- Conflict and Trade-offs: Values can sometimes conflict with each other, creating dilemmas and
trade-offs in decision-making. When faced with competing values, individuals must weigh the
importance of each value and make choices that align with their personal hierarchy of values.
- Cultural and Social Influence: Values are influenced by cultural and social factors. Societal norms,
traditions, and beliefs shape the values of individuals within a given culture or community.
- Personalization: Values are personal and can vary from person to person.
Ethical Behavior
Ethics constitute the normative standards for management decision making. In reality, ethics change to fit
the attitude of the decision maker and the specific variables in the decision at hand. Therefore, ethics
comprise a transitional phenomenon in managerial decision making. Although declaredly normative, ethics
are highly subjective and ephemeral. It is tenuous to judge a managerial decision on its ethical merits.
Value conflicts are inevitable at all levels. Value conflicts may have favorable or unfavorable consequences.
Logrolling refers to the practice of exchanging favors or support between individuals or groups to
gain mutual benefits.
Brainstorming:
Brainstorming is group problem-solving technique aimed at generating a large number of creative
ideas and solutions (quantity > quality). Participants are encouraged to freely express their ideas
without criticism or judgment. The goal is to promote divergent thinking and foster a collaborative
environment where unique and innovative solutions can emerge. The focus is on quantity rather
than quality during the idea generation phase. Once all ideas are gathered, they can be evaluated
and refined in subsequent stages of the problem-solving process.
Delphi Technique:
The Delphi Technique is a structured and iterative group problem-solving method that seeks to
achieve consensus among a panel of experts. It is particularly useful when dealing with complex
or uncertain problems.
In the Delphi Technique,
- experts provide their opinions or insights on a problem or issue anonymously.
- A facilitator collects and summarizes the responses, removing any identifying information,
and redistributes the consolidated feedback to the participants.
- The participants review the feedback and may revise their opinions based on the input
from others.
- This process continues iteratively until a consensus or convergence of opinions is reached.
The Delphi Technique allows for the systematic exploration and refinement of ideas while
preserving the anonymity of participants to encourage unbiased contributions.
Consensus Mapping:
Consensus Mapping is a group problem-solving technique that aims to identify areas of
agreement and disagreement among participants on a specific issue. It is a visual representation
of collective opinions or perspectives.
In a consensus mapping session,
- participants provide their input on a particular topic or problem individually, typically using
sticky notes or markers on a large board or paper.
- The ideas or responses are then grouped and categorized based on similarities or themes.
- Through discussion and deliberation, participants work towards identifying areas of
agreement and disagreement, and the resulting consensus map provides a visual
representation of the shared understanding and areas that require further attention or
resolution.
Remember Bolstering (exaggerating the favorable consequences and minimizing the importance of
unfavorable consequences of a decision).