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Module 3 Decision Making and Problem Solving

This document discusses problem solving and decision making. It covers three main topics: [1] the difference between non-programmed and programmed decisions; [2] the steps involved in problem solving and decision making; and [3] how bounded rationality and other factors influence our decision making abilities. Our rationality is limited by cognitive biases, imperfect information, and time constraints. When making complex choices, people may settle for satisfactory instead of optimal solutions. A variety of psychological and situational factors shape the decision making process.

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Quidda Landingin
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© © All Rights Reserved
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Download as PPTX, PDF, TXT or read online on Scribd
87 views

Module 3 Decision Making and Problem Solving

This document discusses problem solving and decision making. It covers three main topics: [1] the difference between non-programmed and programmed decisions; [2] the steps involved in problem solving and decision making; and [3] how bounded rationality and other factors influence our decision making abilities. Our rationality is limited by cognitive biases, imperfect information, and time constraints. When making complex choices, people may settle for satisfactory instead of optimal solutions. A variety of psychological and situational factors shape the decision making process.

Uploaded by

Quidda Landingin
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MODULE 3:

DECISION MAKING AND


PROBLEM SOLVING
Group 1:

Glady Mae Pomasin


Quidda Landingin
Usha Claire Gonce
Donna San Buenaventura
1 Non-programmed Versus
Programmed Decisions

2 Steps in Problem Solving and


Decision Making

3 Bounded Rationality and


Influences on Decision Making
LESSON 1
Non-programmed

Versus

Programmed Decisions

1 Non-programmed Decisions

• these are new and complex decisions that necessarily require


thought and creativity.

2 Programmed Decisions
• easy and routine decisions with a predetermined
decision-making strategy.
Steps in Problem Solving
LESSON 2 and Decision Making

1 Identify and diagnose the 4 Choose one alternative solution


problem

Develop alternative solutions Implement the solution


2 5

Evaluate alternative Evaluate and control


3 solutions 6
Bounded Rationality and
LESSON 3 Influences on Decision
Making

According to Boyce (2021)

• Bounded rationality refers to the cognitive limitations of consumers.

• According to bounded rationality, we make suboptimal decisions due to three


factors – cognitive limitations, imperfect information, and time constraints.
Suboptimal refers to
a level or standard
• When faced with complex choices, consumers may opt to ‘satisfice’ instead of that is below the
optimal (best
spending time and effort analyzing the situation – leading to a sub-optimal possible) level or
choice. standard.
Nine Factors that Contributes to the Limited Rationality of
our Decision Making Process

Key Factors of Emotional


Intelligence
INTUITION PERSONALITY AND
EMOTIONAL
COGNITIVE
INTELLIGENCE
INTELLIGENCE
Intuition is a form of experience- 1. Self -
based knowledge or reasoning that The temperament and Emotional intelligence is defined awareness
weighs and balances data emotional intelligence of the as the ability to recognize one's
inadvertently and naturally. decision-maker have an own emotions, empathize with 2. Self-
Intuition also employs a strategy impact on his or her capability others, and control one's emotions management
to find creative solutions to in order to enhance one's life.
for drawing any conclusion that is People's capacity to communicate
not based on the standard step-by- problems. The willingness to
accept risks is an important and understand their sentiments is
step method. Intuition can also be largely influenced by their
based on feelings or experiences.
part of a person's personality. intelligence. 3. Social awareness

4. Relationship
management
Nine Factors that Contributes to the Limited Rationality of
our Decision Making Process

POLITICAL CONSIDERATIONS DEGREE OF CRISIS AND


QUALITY AND ACCESIBILITY
OF INFORMATION CERTAINTY CONFLICT
In ideal circumstances, managers There are three aspects to a The term "crisis management"
make management decisions person's level of confidence: refers to a strategy for being
Making an effective decision based on the objective merits of certainty, risk, and uncertainty. more effective at making
usually necessitates the use of competing solutions. In fact, When the facts are thoroughly decisions in times of crisis.
high-quality, credible data. The political variables such as
understood and the outcome Prepare ahead of time for how
ability to provide high-quality alliances, favoritism, or the
decision-maker's desire to
can be properly predicted, you will react to the scenario.
data to management is the most there is a degree of Visualization serves as a
maintain favor with those in
sufficient basis for information confidence. simulation of real-world events.
power influence some decisions.
systems.
Nine Factors that Contributes to the Limited Rationality of
our Decision Making Process

1. Decisive
(one choice, less
VALUES OF THE PROCRASTINATION DECISION-MAKING information)
DECISION-MAKER STYLES
2. Flexible
Procrastination leads to Decision styles indicate themselves
In the end, all decisions are inaction and indecisiveness, in two major ways: how knowledge (many choice, less
which is a major cause of is used and how options are information)
determined on values. self-defeating behaviors. formed. When it comes to data,
Another concept that some managers have a tendency of
Procrastination is a deeply poring over large quantities of
influences decision-making ingrained habit of behavior information before making a 3. Hierarchic
is the pursuit of excellence. that may be motivated by a decision. The alternative method, (one choice, more
fear of making a mistake. also known as satisficing decision, information)
is to make a decision as soon as
there is enough information. 4. Integrative
(multiple choices, more
information)
Problem-solving and decision-making are essential
components of effective management. Even though
all employees have to encounter these processes, it
is necessary for a manager to make appropriate
decisions and solve problems with ease, as this is
part of their job responsibilities.

Thank you
and have a
great day!

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