Decision Making and Problem Solving

TL;DR

Decision-making is the process of choosing one alternative from several options, while problem-solving involves finding the answer to a unique question. Decision-making can be classified as programmed (recurring) or non-programmed (unique), and is influenced by the availability of information. The rational approach and behavioral approach are two perspectives on decision-making, and evidence-based management can help managers make informed decisions.

Transcript

this course describes the many different perspectives of decision-making let's start by examining the nature of decision-making in distinguishing it from problem solving decision making is choosing one alternative from among several problem solving on the other hand involves finding the answer to a question note that some situations decision-making... Read More

Key Insights

• ⁉️ Decision-making involves choosing one alternative from several options, while problem-solving is finding the answer to a unique question.
• 📏 Programmed decisions follow established decision rules, while non-programmed decisions require problem-solving.
• 💁 Decision-making is influenced by the frequency of reoccurrence and the availability of information.
• ⛔ The rational approach assumes logical and objective decision-making, while the behavioral approach considers the limits on rationality and the influence of intuition, ethics, and risk propensity.
• 👋 Evidence-based management advocates using the best theory and data available to make decisions.
• 👥 Group polarization and groupthink can influence decision-making in organizations.
• 🖐️ Creativity plays a role in problem definition, alternative identification, and evaluation.

Questions & Answers

Q: What is the difference between decision-making and problem-solving?

Decision-making involves choosing one alternative from multiple options, while problem-solving is finding the answer to a unique question or issue.

Q: How are programmed and non-programmed decisions classified?

Programmed decisions are recurring and follow established decision rules. Non-programmed decisions are unique and require problem-solving.

Q: How does the availability of information impact decision-making?

The availability of information affects decision-making by influencing the evaluation of alternatives and the estimation of outcome probabilities.

Q: What is evidence-based management?

Evidence-based management is the commitment to identify and use the best theory and data available to inform decision-making, rather than relying on untested beliefs or previous practices.

Summary & Key Takeaways

• Decision-making involves choosing one alternative from multiple options, while problem-solving is finding the answer to a unique question.

• Programmed decisions are recurring and follow established decision rules, while non-programmed decisions are unique and require problem-solving.

• Decision-making is influenced by the frequency of reoccurrence and the availability of information.

• The rational approach assumes logical and objective decision-making, while the behavioral approach considers the limits on rationality and the influence of intuition, ethics, and risk propensity.

• Evidence-based management advocates the use of the best theory and data available to make decisions.