Management Fundamentals 5th Edition by Robert Lussier

Exercise 6

Select a problem or opportunity that you now face. Remember, a problem exists when objectives are not being met-when there is a difference between what is happening and what you want to happen. The problem or opportunity may be from any facet of your life-work, college, sports, a relationship, a purchase to be made in the near future, where to go on a date, and so on. Use the decision-making model outline that follows to solve your problem or take advantage of the opportunity.
Objective
To improve your ability to make decisions.
Skills
The primary skills developed through this exercise are:
1. Management skill - decision making (conceptual, diagnostic, analytical, critical thinking, and quantitative reasoning)
2. AACSB competency - analytic skills
3. Management function - primarily planning (but decisions are made when organizing, leading, and controlling)
Step 1. Classify and Define the Problem or Opportunity
Decision structure. Do you need to make a programmed or a nonprogrammed decision?
Decision condition. Are you facing a condition of uncertainty, of risk, or of certainty?
Decision-making type. Is a rational or bounded rational decision appropriate? (Continue to follow all steps in the decision-making model even if a bounded rational decision is appropriate.)
Select the appropriate level of participation. Should the decision be made by an individual or a group? (If a group decision is appropriate, use a group for the following steps in the model. But remember to maximize the advantages and minimize the disadvantages of group decision making.)
Define the problem. List the symptoms and causes of the problem (or opportunity); then write a clear statement of it.
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Step 2. Set Objectives and Criteria
Write down what is to be accomplished by the decision and the standards that any alternative must meet to be selected as the decision that will accomplish the objective. (Specify "must" and "want" criteria if appropriate for the decision.)
Objective: ________________________________________________________
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Criteria: (must) ____________________________________________________________
(want) _______________________________________________________
Step 3. Generate Creative and Innovative Alternatives
What information do you need? (Remember that information must be timely, of good quality, complete, and relevant to be useful.) Will you use any technology?
If you are working with a group, will brainstorming, nominal grouping, or consensus mapping be used?
List your alternatives (at least three) below; number them. If a decision tree will be helpful, make one.
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Step 4. Analyze Alternatives and Select the
Most Feasible
Is a quantitative, Kepner-Tregoe, or cost-benefit (pros and cons) analysis appropriate? Choose a method and complete your analysis.
Step 5. Plan and Implement the Decision
Write out your plan for implementing the decision. Be sure to state the controls you will use to make sure you know if the decision is working. How can you avoid escalation of commitment?
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Step 6. Control the Decision
After implementing the decision, make notes about progress in solving the problem or taking advantage of the opportunity. Indicate any need for corrective action, and if you need to, return to prior steps in the decision-making model.
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Apply It
What did I learn from this experience? How will I use this knowledge in the future?
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Your instructor may ask you to do this Skill Builder in class in a group. If so, the instructor will provide you with any necessary information or additional instructions.