Page 77 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes If the implicit favourite model is at work, the search for new alternatives ends well before
the decision-maker is willing to admit having made his or her decision. Considerable
evidence suggests that individuals frequently make an early commitment to one alternative
and don't evaluate the strengths and weaknesses of the various alternatives until after
having made their final choice.
6. The Intuitive Model: Intuitive decision-making is an unconscious process created out of
distilled experience. It does not necessarily operate independently of rational analysis;
rather, the two complement each other. The intuitive decision-making model may be
considered a form of extra sensory power or sixth sense.
Intuitive decision-making, has recently come out of the closet and into some respectability.
Experts no longer automatically assume that using intuition to make decisions is irrational
or ineffective. There is growing recognition that rational analysis has been overemphasized
and that, in certain cases, relying on intuition can improve decision-making.
According to W.H. Agor, Intuitive decision-making are more likely to be used in the
following circumstances:

(a) When a high level of uncertainty exists.
(b) When there is little precedent to draw on.
(c) When variables are less scientifically predictable.

(d) When "facts" are limited.
(e) When facts don't clearly point the way to go.
(f) When analytical data are of little use.
(g) When there are several plausible alternative solutions to choose from, with good
arguments for each; and
(h) When time is limited and there is pressure to come up with the right decision.
Is there a standard model that people follow when using intuition? According to W.H. Agor,
individuals follow two approaches:
1. Front End of the Decision-making Process: When intuition is used at the front end, the
decision-maker tries to avoid systematically analyzing the problem, but instead gives
intuition free rein.
2. Back End of the Decision-making Process: A back-end approach to using intuition relies
on rational analysis to identify and allocate weights to decision criteria, as well as to
develop and evaluate alternatives. Once this is done, the decision-maker stops the analytical
process in order to "sleep on the decision" for a day or two before making the final choice.

3.9 Kinds of Decisions

There are several basic kinds of decisions.
1. Decisions whether: This is the yes/no, either/or decision that must be made before we
proceed with the selection of an alternative.

Example: (a) Should I buy a new TV?

(b) Should I travel this summer?
Decisions whether are made by weighing reasons pro and con. The PMI technique discussed
in the next unit is ideal for this kind of decision.

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