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!