About This Chapter
Decision-Making in Leadership & Business - Chapter Summary
In this helpful chapter, you'll review decision making in leadership and business. Among other topics, the lessons outline the decision-making process specifically for organizations and explain the decision analysis approach to making business decisions. Our expert instructors use an easy-to-follow instruction style and plenty of examples, making it easy for you to understand even the most challenging topics. Before or after viewing the lessons, the accompanying multiple-choice quizzes are a great way to assess your knowledge. By reviewing this chapter, you should be able to:
- Outline the seven steps of decision making
- Describe how the Vroom-Yetton leader participation model addresses decisions
- Differentiate between the incremental model and the administrative model of decision making
- Explain how the garbage can model approaches decision making
- Identify the role quantitative analysis plays in business decision making
- Discuss how 3M handles decision making
- Detail the requirements of ethical decision making
1. The Decision Making Process for Organizations
We will be discussing the formal decision making process for managers. The process will show you how to look at a problem and use a series of steps to address that problem. It is a key element of managerial decision making and one that is very practical for the business environment.
2. The Decision Analysis Approach to Decision Making in Business
How do you know what the best decision for your business is? What are the costs and benefits associated with each option? In this lesson, we'll examine decision analysis, including what it is and how to use value and uncertainty in your analysis.
3. The Seven Steps of Decision Making
Effective decision-making is an essential skill for every manager. In this lesson, you'll learn about a seven-step process for effective decision-making. You'll also have an opportunity to take a short quiz after the lesson.
4. The Vroom-Yetton Leader Participation Model: Rethinking Business Decision Making
Leaders in an organizational environment have to make decisions daily. The Vroom-Yetton-Jago Normative Decision Model helps explain when and how to have employees participate in decision making.
5. The Incremental Model of Decision Making
Sometimes, the decision cannot be reached in one go. Instead, you make a step-by-step progress towards a solution. Explore the incremental model and its three phases of decision-making.
6. Administrative Model of Decision Making
Do you always consider all possible alternatives before making a decision? Learn more about the concept of limited rationality and its consequences with the help of the administrative model of decision making.
7. The Garbage Can Model of Decision Making
Organizations can be messy! The garbage can model explains the decision-making process in organizations with changing preferences, poor processes and high staff turnover.
8. Quantitative Analysis in Business Decision Making
Business leaders must make important decisions every day, and quantitative data can help them. In this lesson, we'll look at how to use quantitative analysis in business decision making, with specific examples from different divisions of the company.
9. SCM Case Study: Decision Making at 3M
Imagine you have factories all over the world and each one has its own supply chain. How do you make decisions about the supply chain in the face of all that complexity? This lesson looks at how 3M introduced decision making software and how it enabled them to make supply chain decisions more effectively.
10. Ethical Decision Making
We have to make decisions every day, and many of these decisions have an ethical dimension. In this lesson, you'll learn about ethical decision-making and a process you can use to make ethically sound decisions. A short quiz follows.
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Other chapters within the Business 302: Foundations of Leadership course
- Basics of Leadership in the Workplace
- Leadership Styles & Traits
- Leadership & Management Functions
- Effective Leadership & Leadership Theories
- Communication in Leadership
- Ethical, Social & Legal Responsibilities of Leadership
- Leading Work Groups & Teams
- Managing Conflict & Conflict Resolution
- International Business Leadership