 Three ways of making decisions – rationally,

experimentally, and intuitively

 Organizations attempt to make decisions in a
rational/systematic way
◦ Establishing all the facts
◦ Evaluating the optimal course of action
◦ Complexity of environment creates uncertainty
◦ Big data, Google Analytics, IoT – 4th Industrial Revolution
 Intuitive decision-making relies on your ‘gut’
◦ Something that is perceived, understood or believed
by instinct, feelings or nature without actual
evidence
◦ Steve Jobs (former CEO of Apple, creator of Pixar) –
renowned for intuitive decisions
 “You can’t connect the dots looking forward”
 In a chess game – 121 million outcomes are
possible after 3 moves
◦ “Intuition is the defining quality of a great chess
player” – Garry Kasparov (former World Chess
Champion)
 Decision- choosing one of a number of
alternatives
 Two types of decision-making:
◦ Personal
◦ Group

Personal decision-making
underlies group d.m.

 Decisions have consequences

Hierarchy of Forces resulting in actions

ACTIONS Determine achievement of objectives

Decisions

Wants We must control our wants

Values What shapes your value system?

What do you believe about

Beliefs
yourself , others, and the world
 Behind every decision there is a motive

 Be aware of your motives

 Attitudes condition responses

 Attitude affects performance

 Long-term decisions (career)

 Short-term decisions (day-to-day)

 Effect on other people (injustice)

 Effect on yourself (future actions)

 Sustainability
 Fairness
 Compliance with societal norms
 Meeting objectives
 Meeting needs/requirements of stakeholders
 Most decisions have a time limit
 The one who has made the decision
must live with the consequences
 Beware of the ‘obvious’ solution
 Carefully assess the risks
 Most complex decisions are a
compromise
 You will please some and antagonize
others
 Most management decisions affect a
lot of people
 World leaders each have their own motives and
agendas
 Maximizing his/her own economies
 Advocating his/her country’s perspective on global
issues
◦ Democracies, communists, fascists, totalitarianism,
theocracies
 Slow progress in resolving major issues – climate
change