Chapter 12 - Individual and group decision making. In this chapter, students will be able to understand: Compare and contrast the rational model of decision making, Simon’s normative model, and the garbage can model; review the eight decision-making biases; discuss the thrust of evidence-based decision making and its implementation principles;. | Individual and Group Decision Making Chapter Twelve Learning Objectives Compare and contrast the rational model of decision making, Simon’s normative model, and the garbage can model. Discuss eight decision-making biases. Discuss the thrust of evidence-based decision making and its implementation principles. Explain the model of decision-making styles. Explain the model of intuition and the ethical decision tree. Learning Objectives (cont.) Summarize the pros and cons of involving groups in the decision-making process. Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making. Describe the stages of the creative process. Discuss the practical recommendations for increasing creativity. Models of Decision Making Decision making identifying and choosing alternative solutions that lead to a desired state of affairs Models of Decision Making The Rational Model proposes that managers | Individual and Group Decision Making Chapter Twelve Learning Objectives Compare and contrast the rational model of decision making, Simon’s normative model, and the garbage can model. Discuss eight decision-making biases. Discuss the thrust of evidence-based decision making and its implementation principles. Explain the model of decision-making styles. Explain the model of intuition and the ethical decision tree. Learning Objectives (cont.) Summarize the pros and cons of involving groups in the decision-making process. Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making. Describe the stages of the creative process. Discuss the practical recommendations for increasing creativity. Models of Decision Making Decision making identifying and choosing alternative solutions that lead to a desired state of affairs Models of Decision Making The Rational Model proposes that managers use a rational four-step approach to decision making. Nonrational Models of Decision Making Nonrational models Attempt to explain how decisions are actually made Decision making is uncertain Decision makers do not possess complete information Difficult for managers to make optimal decisions Simon’s Normative Model Bounded rationality represents the notion that decision makers are “bounded” or restricted by a variety of constraints when making decisions Satisficing choosing a solution that meets some minimum qualifications, one that is “good enough”. Garbage Can Model Garbage Can Model decision making is sloppy and haphazard decisions result from complex interaction of four independent streams of events: problems, solutions, participants and choice opportunities Decision-Making Biases Judgmental heuristics rules of thumb or shortcuts that people use to reduce information processing demands. Evidence-Based Decision Making Evidence-based decision making (EBDM) .
