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Ch 3: Individual Decision Making

About This Chapter

In this chapter, discover the most essential information about individual decision making. You can test yourself using quizzes included in every lesson.

Individual Decision Making - Chapter Summary and Learning Objectives

The ability to make good decisions without the help of others is important. Individual decision making can be a difficult process, and managers must avoid errors of judgment and biases in the process. The instructors in this chapter will lead video lessons focused on individual decision making, the different styles and the most common mistakes. Assess your knowledge by taking advantage of the quizzes included in each lesson. This chapter will teach you about topics like:

  • Individual decision making models
  • What bounded rationality is and its significance in decision making
  • Intuitive decision making in organizations
  • The styles of decision making
  • Errors that may arise in decision making

Video Objective
The Rational Decision Making Model: Steps and Purpose in Organizations Dissect the rational decision making model to understand its purpose in organizations.
Bounded Rationality and Decision Making in Organizations Summarize what bounded rationality is and find out how it is related to the decision making process.
Intuitive Decision Making in Business and Management Distinguish terms like intuition to better understand intuitive decision making.
The Vroom-Yetton Leader Participation Model: Rethinking Business Decision Making Appraise the Leader Participation Model and how it has impacted decision making in businesses.
Decision Making Styles: Directive, Analytical, Conceptual and Behavioral Compare terms associated with different decision making styles.
Common Biases and Judgment Errors in Decision Making Classify the different bias and judgments that can affect decision making.

6 Lessons in Chapter 3: Individual Decision Making
The Rational Decision Making Model: Steps and Purpose in Organizations

1. The Rational Decision Making Model: Steps and Purpose in Organizations

Managers often rely on fact-based analytical decision making. Rational decision making can be very beneficial in the business world and differs from intuitive processes in several ways. Learn more about both decision-making tools, and find out which process provides the best solutions.

Bounded Rationality and Decision Making in Organizations

2. Bounded Rationality and Decision Making in Organizations

Managers have to make either intuitive or rational decisions every day. However, the rational decision-making process is not always an option. The bounded rationality model was developed to explain making rational choices under time constraints and other pressures.

Intuitive Decision Making in Business and Management

3. Intuitive Decision Making in Business and Management

Managers often rely on patterns and intuition to make quick decisions. Intuitive decision making can be very beneficial in the business world and differs from rational processes in several ways. Learn more about both decision-making tools and find out which process provides the best solutions.

The Vroom-Yetton Leader Participation Model: Rethinking Business Decision Making

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.

Decision Making Styles: Directive, Analytical, Conceptual and Behavioral

5. Decision Making Styles: Directive, Analytical, Conceptual and Behavioral

Every leader prefers a different way to contemplate a decision. The four styles of decision making are directive, analytical, conceptual and behavioral. Each style is a different method of weighing alternatives and examining solutions.

Common Biases and Judgment Errors in Decision Making

6. Common Biases and Judgment Errors in Decision Making

In order for companies to be successful they have to be able to learn from their mistakes. One way they can do that is to identify biases and errors that might occur during decision-making.

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