Business Organization Team Presentation
Transcript of Business Organization Team Presentation
OrganizationDecision MakingTeam 10
Index
1. What is decision making?
2. Decision making process
3. Importance of decision making
4. Types of decision making
5. Models of decision making
6. Tools and techniques to improve decision mak-ing
7. Biases and errors in decision making
What is decision making?
“The process of deciding about something important, especially in a group of people or in an organization in order to arrive at a solution for a
given problem”
Analyze situation
Decision Making Process
Identify a problem or opportunity
GatherinformationDevelop options
Evaluatealternatives
Select a preferred
alternativeAct on the decision
Evaluate decision
effectiveness
Importance of decision making
Tencent• Largest service portal site in China• Founded in November, 19981. Implementation of managerial function2. Pervasiveness of decision making3. Evaluation of managerial performance4. Successful operation of business5. Helpful in planning and policies6. Selecting the best alternative
Importance of decision makingImplementation of managerial function
QQ Mail• Providing many functions, but slow and spam-
flooding
Deleting unnecessary functions
Optimization for higher
speedAnd so on
Importance of decision makingPervasiveness of decision making
Q Zone• Blog service developed in 2005
• Development process was a series of decision making
2006▷ Starting browser mode ▷Introduction of popular anima-tion ▷ Q Zone WAP test release
2007 ▷ Introduction of information center and circle of friends
2008 ▷Private log, friends log release ▷Album revision release
2009 ▷QQ Farm application official release ▷Q zone and QQ information integration
Importance of decision makingEvaluation of managerial performance
QQ Music• Introduced ‘Green Diamond Membership’• Provides unlimited music downloading service
and other peripheral services.• Able to hold customers with in QQ services.• Decision making evaluates the managerial per-
formance.
Importance of decision makingSuccessful operation of business
WeChat• A mobile instant messaging application released
in 2011• Improvements : Voice Intercom, ‘view of the
people nearby’ function, etc.• No. 1 app in Asia in 2013
Importance of decision makingHelpful in planning and policies
• No plans and policies can be developed and im-plemented without decision making
• Appropriate decision must be made from so many alternatives
Should I go this way? Or
that way?
Importance of decision makingSelecting the best alternative
• Decision making = Selecting the best alternative
• Selecting best one of the alternatives by evaluat-ing advantages and disadvantages of every alter-natives.
Types of decision making
• Programmed decision• Routine and repetitive• Develops specific ways to handle them• Ex) What should I eat for lunch? What should we do with this client’s complain?
Types of decision making
• Non-programmed decision• Novel and poorly defined• No procedure exists for solving the problem
Decision making models
1. Rational Comprehensive Model
2. Incremental Theory
3. Mixed scanning
Decision making modelsRational Comprehensive Model
?!
Objectives are clear and ranked
in accord with their importance
Costs and benefits;
advantages and disadvantages are
evaluated
Alternative that maximizes the attainment of
goals, values and objectives is
chosen
Decision making modelsIncremental Model
Decisions are constructed by the mixture of intuition, experience, rule of thumb.
Decision making modelsMixed scanning
Combination of rational comprehensive model and incremental theory.
Techniques to improve decision makingMajority Rule Technique
• Simple, fast, easy and fair in terms of repre-sentation• May lead to inappropriate decision
Tools and techniques to improve decision makingNominal Group Technique
• Anonymous suggestions are graded by indi-viduals and the suggestion with highest point is chosen and delivered.
10 7 8 6
A
A 가☆ 1
Tools and techniques to improve decision makingBrainstorming Technique
• Encourages participation of every member to decision-making process to foster creativ-ity
&♬國 +
• Group provides written responses to a questionnaire• Decision is made with the
result
Tools and techniques to improve decision makingDelphi Technique
Biases and errors in decision makingConfirmation Bias
DATA
No!
• Looking for information that supports exist-ing beliefs and rejecting data that goes against the belief.• Serious problem in making statistic-based
decision
DATA
Biases and errors in decision makingAnchoring
• Making decision on information gained early in the decision making process.
It’s not that big!
Biases and errors in decision makingOverconfidence Bias
• Too much faith in your own knowledge and opinions.• Combined with anchoring bias
I can make it!
Biases and errors in decision makingGambler’s Fallacy
• Expecting past events to influence the fu-ture• Odds are always the same
It’s my turn to win!
Biases and errors in decision makingFundamental Attribution Error
• The tendency to blame others when things go wrong, instead of looking objectively at the situation.
I hate this car’s brake!
Thank you for listening!