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Decision Making ™ ProThink



  “Helping you make the right decisions!”®
Decision Making
 Aaron Brown    Brian Chang
 Steve Byrne    Sarah Coble
 Tiffany Chen   Chris Conway
Research, conducted by YouGov polled 3471 adults online,
  highlights the negative impact of poor decision-making or
     poor communication about decision-making, has on

 Of those that thought their employer was a poor
  decision-maker, 61 percent reported feeling frustrated
  and losing respect for the manager.
 Some 83 percent felt it damaged morale
 51 percent said it reduced productivity in the workplace
 Nearly one in five, or 19 per cent, thought it led to
  competitors gaining an advantage
 What is decision making and how it works
 Causes and effects of poor decision-making
     Concept of Groupthink
     Show how decision-making can affect a company
      in positive or negative direction
 Solutions   to those causes
                  Decision Making
 In organizations, or in general, decision making
  is considered as an outcome of cognitive
  processes that lead to the selection of a course
  of action among several alternatives.
 Decisions can be made off of outside influences,
  advice, and opinions

       Decision-making should be looked at as a process and not
        something that can be done quickly and effectively on a regular
Steps to Formulating a Decision

   Step One:
       Formulation
   Step Two
       Concept Development
   Step Three
       Detailing
   Step Four
       Evaluation
   Step Five
       Implementation
      Poor Decision Making
 Problemscan arise with poor decision-
 making and the misuses and
 misunderstandings of the decision-making
Forms of Bad Decision Making
   1. Groupthink
     A mode of thinking that people engage in when they
      are deeply involved in a cohesive in-group, when the
      members’ striving for unanimity override their
      motivation to realistically appraise alternative courses
      of action
    Also meaning…
        In a group there is more concern with appearing

          cohesive and maintaining group relations, or a
         tendency to seek concurrence, than there is with
                  making a high quality decision.
     Symptoms of Groupthink
 Collective               Self-censorship
  rationalizations         An illusion of
 Direct pressure on        invulnerability
  dissidents to conform    An illusion of
 The emergence of          unanimity
  self-appointed mind      An illusion of morality
 Biased perceptions or
  stereotyping of out-
  group members
      Bad Decision Making Cont.
 2.According to Whyte, Hirokawa and
  Scheerhorn …
      Bad decision-making could be attributed to
       the “tendency of groups make more extreme
       decisions than individuals and the tendency of
       groups to frame some decisions in negative
   Bad Decision Making Cont.
 3.Emotions and a groups’ manner of
  handling conflict can also play a role in the
  quality of decisions.
Effects of poor Decision-Making
 Negatively   impacts:
     Productivity
     Efficiency
     Turnover
     Profit
     Employee Moral
     Communication
     Brand Image
 Brian’s   slides…
  Effects of Poor Decision-Making
 BrandLoyalty, don’t loose your returning
     Coca-Cola Brand
      • Tried introducing “New Coke” after conducting
        research and a blind taste test study.
      • They failed to see the brand loyalty in their
        customers which cost them millions.
            Research costs
            Cost of producing the product
            Lost customers
                Effects of
        Poor Decision-Making Cont.
   Time Warner Cable/AOL merger
       Time Warner
         • Lawsuits amounting to over $3 billion
                 Ex-employees
                 Stock holders
         • Stock Value plummeted 26% from 2000 to 2008.
       AOL
         • In 2002 AOL lost more than 1 million customers
         • The Title “AOL” was removed from AOL Time Warner, which now
           reads Time Warner Cable.
       Upper management
         • Both AOL and Time Warner went through changes in their upper
           management due to the poor decision-making that occurred with the
           merger. Prior Chief executives from both companies removed
           themselves for the “better of the company”.
          Decision-Making Across
   The need to identify
    the type of culture.

   Who is being

   What is the goal?
       Persuasion
       Decision
     Anxiety/Uncertainty Management
   Causes:                         Consequences:
       Fear of the unfamiliar          Can increase
       Fear of the unknown              ethnocentrism
       Vulnerability                   Intensify negative
       Perceived threats                stereotypes
        between ingroup and             Lead to vicious conflict
        outgroup circles.                styles
                                        Ultimately leading to
                                         poor decision making
            AUM Theory cont.
We experience anxiety and
uncertainty when we encounter
someone from another culture
   Anxiety: emotion
   Uncertainty: cognitive

If trying to persuade to make
decision it is important to
reduce anxiety and
            AUM Theory cont.
 There are misunderstandings in
 intercultural communication for a couple
     Our frame of reference
     Clashes in verbal and nonverbal behaviors
 47axioms that cover relationships on
 seven factors
     # 33: An increase in our respect for strangers
      will produce a decrease in our anxiety.
          Nonverbal Behaviors
 Extremely beneficial when trying to
  persuade to make a decision.
 Know the cultural taboos when doing
  business abroad.
     The A-OK sign
     Bottom of your foot in China.
 Remove Ethnocentric Lenses
 Take into account other cultures affected
 by a decision.

 Dominant   culture is not the “best”.

 Demonstrate   a mutual respect for all
Avoiding Hidden Mental
   Group dynamics awareness exercises
        Six de Bono Hats
   Pre-established decision making strategies
      Keeping the big picture in view as projects progress
      Avoid “good - at the time” decisions which hurt end results

      Organize group structure to minimize groupthink
             Avoiding Groupthink
       Appoint a devil’s advocate
       Encourage independent critical evaluation of
        group decisions
       Group leader should stay neutral initially
       Divide into independent subgroups
         Particularly when members split on a decision
       Seek outside advice / bring in new members
       Collect anonymous critique / suggestions
         Intuitive Decision Making
   Defined as
       Creative thinking, right-brain thinking, insight,
        intuition, or gut reaction
   Option Generation
       Ideally, producing as many alternatives as possible;
        discarding none at first
         • Brainstorming / Mind storming
   Subconscious tapping
       Mediation/Relaxation before or after addressing
    Rational Decision Making Process
    Identify the roles of group members
    Scope the range of variables for the problem
    Determine the objectives
    Propose measurable criteria to evaluate how well the objectives
     are met
    Develop as wide/varied a range of alternatives as possible
    Analyze how well each alternative meets each objective
    Explain the expected result of each alternative for every objective
     to the team leaders
    The team leaders choose an option
    The chosen alternative is turned over for implementation,
     evaluation, and feedback

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