Reference no: EM133100927

Chapter 3 is all about decision making. First, managers have to deal with many problems while making decisions. When a manager makes a decision, they have to deal with a lack of structure, uncertainty, risk, and conflict. Most decisions managers make have no precedent. When making a decision with any uncertainty, managers can follow a six-step procedure in order to arrive at the best decision for them. First, they have to identify and diagnose the problem. Second, the manager should think of different solutions. The manager should evaluate all of their options and eventually make the decision. After the decision is made, it must be implemented. It then needs to be evaluate to ensure the success of the changes. There are some barriers to making decisions as well. Managers should try to refrain from allowing a personal bias to impact a decision. Biases can be either reflexive or reflective. Because decisions typically need to made quickly, managers should collaborate with effective and efficient peers, look at real time data and be realistic of conflict. The chapter goes on to discuss decision making in groups. It talks about the power of diversity, eliminating biases, better comprehension and a higher level of commitment. However, there can be some disadvantages like groupthink, dominant personalities satisfying, unimportance and different goals. Can conflict be good? Yes, it helps identify biases, conflicts in perception and outdated views. Devil's advocacy and dialectic are great tools to force everyone to evaluate their thoughts. It also encourages creativity and new ideas.

Question: One of the most important ideas in this chapter is bounded rationality. How does this impact you as a leader and the decisions you make?