MGCR 222 Lecture Notes - Lecture 9: Decision-Making, Workplace Violence, Divergent Thinking
5 Feb 2020
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Chapter 9: The Decision-Making Process
Steps in the Decision-Making Process
Decision making: the process of choosing
1. Recognize and define the problem or opportunity
2. Identify and analyze alternative courses of action
3. Choose a preferred course of action
4. Implement the preferred course of action
o Lack-of-participation error: occurs when important people are excluded from the
decision-making process.
5. Evaluate results and follow up as necessary
The Decision to Decide
- Making and implementing the right choices is complicated : set priorities.
Ask and answer:
- What really matters?
- Might the problem resolve itself?
- Is this my, or our problem?
- Will time spent make a difference?
Ethical Reasoning and Decision Making
Linking steps in decision-making process with corresponding issues of ethical reasoning.
Decision making is incomplete without including ethical analysis.
1. Moral problems and dilemmas
Ethics: philosophical study of morality.
Moral problems: poses major ethical consequences for the decision maker or others.
- Job layoffs may seem normal to some, but to others it is actually a moral problem since
people will lose their jobs and may have debts and have families.
- Addressing the problem may not change the business decision but it may change how
the business decision is reached and implemented
Moral dilemmas: involves choosing among alternative that contain both potential benefits and
harm
- Choosing between alternatives that contain both potential benefits and harm.
- Decisions must be made with rigor and thoughtful consideration.
2. Ethics double-check
Criteria questions: assess a decision in terms of utility, rights, justice and caring.
- Utility: satisfaction?
- Rights : respect?
- Justice: consistent with the canons of justice?
- Caring : consistent with the responsibilities to care?
Spotlight questions: exposes a decision to public scrutiny and force us to consider a decision in
the context of full transparency.
Alternative Decision Environments
Decisions are made under three conditions: uncertainty, risk and certainty
- Nonprogrammed
- Programmed
Certain environments: provide full information on the expected results for decision-making
alternatives.
- When a person invests money in a savings account, absolute certainty exists about the
interest that will be earned on that money.
Programmed decisions: implement solutions that have already been determined by past
experience.
→ simplify decision rules, investigate new alternatives, delegate implementation
Uncertain Environments and Nonprogrammed Decisions
Uncertain environments: provide no information to predict expected results for decision-
making alternatives.
Nonprogrammed decisions: are created to deal with a unique problem or opportunity at hand.
- Marketing team that has to respond to the introduction of a new product by a foreign
competitor.
Risk Environments and Programmed Decisions
Risk environments: provide probabilities regarding expected results for decision-making
alternatives.
- Gain speed, and the appearance of efficiency.
- High risk: accuracy of the choices could easily decline
Decision Environment and Decision Type Mismatches
- the presence of unusual combinations of decision environments and types signals
potentially serious decision-making deficiencies.
- Use of programmed decisions in uncertain environments.
Decisions with Extreme Consequences
type of planning:
1. Risk management in decision making
Risk management - involves anticipating risks and factoring them into decision making.
- Identify risk
- Develop strategy
- Assign responsibility to deal with them
Strategic risks : threats to overall business success
Operational risks: threats inherent in the technologies used to reach business success
Reputation risks: threats to a brand or to the firm’s reputation.
What to pay attention to?
- Financial threats
- Challenges to IS
- New initiatives from competitors
- Economic recession and natural disasters
2. Crisis planning
Document Summary
Making and implementing the right choices is complicated : set priorities. Linking steps in decision-making process with corresponding issues of ethical reasoning. Decision making is incomplete without including ethical analysis: moral problems and dilemmas. Moral problems: poses major ethical consequences for the decision maker or others. Job layoffs may seem normal to some, but to others it is actually a moral problem since people will lose their jobs and may have debts and have families. Addressing the problem may not change the business decision but it may change how the business decision is reached and implemented. Moral dilemmas: involves choosing among alternative that contain both potential benefits and harm. Choosing between alternatives that contain both potential benefits and harm. Decisions must be made with rigor and thoughtful consideration: ethics double-check. Criteria questions: assess a decision in terms of utility, rights, justice and caring.
