CHAPTER 4 Decisions and Information Decision making Problem Solving Roles o Must look at Current State and Future State to figure out problem o Computer Literacy knowledge and ability to utilize computers o Interpersonal Skills skills used to communicate and interact with other people solve problems o Information Competency gather information and use information to o Analytical Competency the ability to evaluate and analyze actual information to make actual decisions and solve real problems o Decisional Roles information used for entrepreneur resource allocation disturbance handler and negotiation o Information Roles information transferred around the company o Interpersonal Roles information used for ceremonies motivation and networking Managers and Problems o Problem Avoider one who simply avoids all problems o Problem Solver one who solves all performance threats but tends to o Problem Seeker one who solves both performance threats and seeks miss opportunities to find opportunities Costa Concordia is when the captain was rescued on an island while his ship sank and he was trying to avoid the problem Penn State Hockey Arena o When the Sandusky scandal hit they could of either Avoided the problem and hoped the Pegula would not care Avoider Call him and talk to him about the situation first Solver Performance Threat when something could harm your company Performance Opportunity when something could benefit your company in Coca Cola bought Honest Tea and there were many opportunities and threats the future for both Systematic vs Intuitive o Thinking Problem 1st People 2nd Information Evaluating o Feeling People 1st Problem 2nd Information Gathering o Sensing More detailed life like today o Intuition Broader life in future Flight pilot would be a sensation thinker because he thought in detailed about how to land the plane and he thought of the problem over the people first Decision Making Steps Types of Problems o Programmed Use past experiences and knowledge to solve a problem o Non Programmed Don t have any previous knowledge thus you make the best possible decision Risk and Decision Making Types of Environment o Certain an optimized decision low risk of failure programmed decision o Risk measure the possibilities of what the outcome will be o Uncertain you must come up with the best possible decision high risk of failure and non programmed decision Classical describes decision making with complete information Behavioral describes decision making with limited information thus causing you to make the decision that is most interesting to you Tradition Decision Making Process o Identifying Problems o Developing Alternatives o Decide on Action o Implement Decisions o Evaluate Results Lonnie Johnson s super soaker failed first time came back on market with new name Cisco DMAIC tv studio folks Advanced Six Sigma Decision Making Process o Define what is the decision o Measure what is happening o Analyze what is this doing to the company o Improve take steps to improve it o Control maintain the improvement AMAZON CASE same day delivery advanced o Amazon has become a big company by getting alliances with other companies such as Zappos and Audible o They launched the new Amazon Kindle o Bezo is successful because he does not follow the step by step process but uses creativity and flexibility to make his company worthwhile Issues of Decision Making Group Decision Making o Advantages Increased number and creativity on action alternatives More knowledge to make decisions People better understood the decisions being made People are more likely to implement them if they are involved o Disadvantages More time and problems People will feel compelled to agree with higher power People will feel like the outspoken one is the one they should agree with They will feel like they need to adjust their opinions to fit in They could decide on an idea quickly due to lack of time Heuristics when a simplified strategy is put on a decision due to lack of knowledge time or energy CHAPTER 5 Planning Overview Planning the process of setting performance objectives and determining how to get them done Fundamental base before anything Personal Planning o Judging formal and structured planning Set by set exact hour of what to do at what time wants o Perceiving informal and unstructured Does what he wants when he Big Rock Video the big rocks had to go in first because if the smaller objects were placed in first they would take up too much space big priorities must get done before smaller ones o Start with important o Compliancy avoidance o Effective Time Management Best Planning o Action Oriented keeping a result driven direction D Chi plans with Alpha Phi because they know they will get it in o Change Oriented anticipating problems and opportunities so they can be best dealt with D Chi has KD on back up just in case Alpha Phi says no o Priority Oriented putting most important priorities in front of smaller priorities bros before hoes o Advantage Oriented using every resource to it s fullest advantage drugging girls to get them to get it in SHANGHI DISNEY The hierarchy shows the alignment and follow through Long Range 3 years Short Range 3 12 months Strategic o Tactical or Operation Plan Financial Marketing Production Facilities Human Resources NORDSTROM CASE o Top dog in Customer Service o Developed a Web based inventory in which the inventory would be lean and the customers can see exactly what is in the inventory causes them to churn inventory twice as fast as others o They mark down certain items that are not doing well so they can ship it out and get new merch in Procedures and Policies o Policy Broader Guidelines The Office No Dating Policy o Procedure Specific Actions The Office If starting to date they can t be able to work in the same office someone has to quit their job Tools and Techniques The Big 6 Planning Tools o Forecasting using statistics from the past to predict a future state o Contingency identifying actions to take when a strategic or tactical plan must change circumstances o Benchmarking o Scenario considering future scenarios and developing plans to address them disaster o Participatory including everyone who impacting and or will implement your plan in the process o Goal Setting developing clear quantified measures that guides an organization s and individual s work Specific Measureable Attainable Challenging Timely Controlling ensuring results by measuring performance and taking CHAPTER 6
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