Question

1. Please list the main types of approaches to decision making. How decisions CAN be made and what CAN influence the decision making process?
Maximum: 200 words (fewer is better). Bullet-list format for key points and figures preferred, if applicable.

2. Please describe the views and assumptions about a "good" decision making process in the West. Who should be making the decision and how the process should go, as believed by the majority of the people in the West?
Maximum: 300 words (fewer is better). Bullet-list format for key points preferred, if applicable.

3. Please describe the views and assumptions about a "good" decision making process in the East. Who should be making the decision and how the process should go, as believed by the majority of the people in the East?
Maximum: 300 words (fewer is better). Bullet-list format for key points preferred, if applicable.

4. How these differences can play out in the multicultural workplace? Why should businesses worry about these differences? Please note, while #1 is largely a definition/theory question, and #2 and 3 are answered for you in the video and the slides, # 4 actually requires some thinking and therefore is worth 40% of the entire assignment.
Maximum: 400 words (fewer is better). Bullet-list format for key points preferred, if applicable.

Answer 1

Answer- There are many decision making approaches which gives deep understanding into the decision making process and allow managers to reach at certain decisions.

1) Rational approach- It is a very logical and economical approach of decision making process.

It is very appealing kind of approach because it provide the systematic process of decision making and also explain the process in various stages.

Assumptions:

• Decision makers economically manage the organisations.
• These decision makers are completely objective and have absolute information.

Various stages of rational decision-making approach:

(1) Explain the Situational Goal :

In the beginning, a goal is explained for a certain situation.There are some decision making models which do not start with a goal. However, a situational goal should set that can be utilised as a benchmark in explaining the if there is a need to make decision in later stage.

(2) Recognise the Problem:

In this step, decision maker identify a problem for which the decision should be made. It includes the identification and collecting the information about the nature, and causes of a particular problem.

(3) Describing the Decision Type:

In this stage decision- makers attempt to understand the decision type whether this problem needs a programmed decision or a non-programmed decision.if programmed decision is needed then decision maker choose from the given alternatives.

(4) Alternatives generation:

If the non programmed decision is required then decision makers have to generate the alternatives based on their knowledge, education and experience or can take the help from the experts.

(5) Analyse the Alternatives:

in this phase every alternative is evaluated on the basis of its Strengths and weaknesses or also can use the costs and benefits approach to evaluate .

(6) Select the best Alternative:

in this step of decision-making process, decision makers choose the best alternative as per the evaluation.

(7) Implementation :

Once a decision is made and authorities also has accepted this plan, then they implement the decision which include the involves dissemination of the decision, collecting support and assignment of the resources to carry on with the plan.

(8) Control:

In this step, they compare the outcomes or results of the decision with desired goals. If there is some problem decision-maker attempt to control the effects.

2)The Behavioural Approach:

This approach is based on the different assumptions such as

Assumptions

Unlike rational approach it assumed that decision-makers work with bounded rationality but not with perfect rationality.

Decision makers cannot cope up or handle the information about all the prospective of the problems so, they decide to handle some meaningful aspect of it.

Steps involves in this approach :

(i) decision should be based on the particular rules and predefined procedures so that decision maker can eliminate the uncertainty in decision-making.

(ii) in this Phase, decision makers accept the second best possible outcome to eliminate the negative effects.

(iii) Evaluate all the alternatives until they find the solution that fulfil their minimal requirements.

C. The Practical Approach:

This approach has used mix of rational and behavioural approaches to develop the a better decision making process.this approach explains that there is no need to generate all the alternatives and should not use predetermine rules and procedure and should not be accept the minimal requirement approach but decision maker should try to develop the alternatives that can be possible to generate in a given time.

It uses the framework of rational approach and also use some moderating effects of behavioural approach.

D. The Personal Approach:

Unlike all the three above given approaches this approach explain about how people make decision when they feel nervous and are worried about some situation.this approach has explained the individual decision-making and also explained their ‘Conflict Model’. It explains that how people deal with the personal conflicts while making the decisions.

These are the different approaches of decision making that has been explained above.

The decision can be made in various steps such as:

• Step1: Identify the problem which required the decision making.
• Step 2: collect all the relevant information about the situation or problem.
• Step 3: Recognise all the alternatives to solve this problem.
• Step 4: Evaluate these alternatives and all the consequences or evidences.
• Step 5: select the best alternative after evaluation.
• Step 6: Implementation of decision.
• Step 7: Review and Control

Factors Influence the Decision Making process

There are many factors that influence decision making process. Some major factors are :

1. Past experiences of decision maker influence the decision making process as they would use the personal experience to solve some problem because it can affect the future decision making process as they learn from past mistakes and avoid in future decision making processes. or if they have learnt something relevant they implement those learnings in future decision making processes.
2. Various cognitive biases based on psychology of decision makers and their thinking pattern affect the decision making process.some times it may lead to illogical judgements that further affect the decision making process.
3. High commitments for the suck costs make adverse effect on the decision making process.Some times decision maker put lots of time, efforts and money during the decision making as they feel committed and lead to make risky decisions because they fee themselves accountable for the sunk costs which affects decision making.
4. Differences in all the individuals involved in the decision making process such as age, socioeconomic status, belief, culture differences all these things influence the decision making process and can be is hazardous to the health of organisation in some situations.