Warm Welcome to

Decision Making

Sept 17, 2015

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Every Business is built by DECISIONSEvery Leader is made by DECISIONS

Every Action is the result of a DECISIONPlan them well

• Books: Decision making

• Self Assessment

Presentation Structure

• Q&A

• Decision biases

• Steps for decision making

• Six Thinking Hats

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Exercises for Self Assessment

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Statements 2, 4, 5, 6, 8, 13, 15, 16, 18 • Reversed marked.

[very often :1 mark while Not at all 5 marks.]

Statements 1, 3, 7, 9, 10, 11, 12, 14, 17 • Positively marked.

[very often: 5 marks while Not at all 1 mark]

Key to – Exercise on Decision Making

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1. Establishing +ve Decision-making Env (Q 3, 7, 13, 16)

2. Generating Potential Solutions (Q 4, 8, 11)

3. Evaluating Alternatives (Q 1, 6, 15)

4. Deciding (Q 5, 10, 17)

5. Checking the Decision (Q 2, 9)

6. Communicating & Implementing (Q 12, 14, 18)

Steps to –

4 Rules

Do not act on Emotional responseFind as many downsides to an Idea

Look at the Big Picture

Protect the downside

4 Rules

Do not act on Emotional response• H-A-L-T

• Needy Person Index

4 Rules

Do not act on Emotional response

Find as many downsides to an IdeaLook at the Big Picture

Protect the downside

4 Rules

Do not act on Emotional response

Find as many downsides to an Idea

Look at the Big PictureProtect the downside

4 Rules

Do not act on Emotional response

Find as many downsides to an Idea

Look at the Big Picture

Protect the downside

Decision Biases

Selective PerceptionImpression EffectPresentation effectFraming effectEscalation of commitment effectCategorisation effectGroup ThinkAction OrientedSelf Interest

We see things as per our perception and want;

Decision Biases

Credit to self for success, blame to environment / others for failures

Decision Biases

Decision Biases

Selective Perception

Impression EffectPresentation effectFraming effectEscalation of commitment effectCategorisation effectGroup ThinkAction OrientedSelf Interest

Is it?

Decision Biases

If the decision is taken NOW, Recency effect takes over!

+ / – ve Halo effect

Decision Biases

Selective PerceptionImpression Effect

Presentation effectFraming effectEscalation of commitment effectCategorisation effectGroup ThinkAction OrientedSelf Interest

How Short Or Long is the movie?

Have you stopped beating your wife?

Decision Biases

Selective PerceptionImpression EffectPresentation effect

Framing effectEscalation of commitment effectCategorisation effectGroup ThinkAction OrientedSelf Interest

INR 10 /- saving on INR 50 /- item

Or

INR 10 /- saving on INR 1000/- item

Decision BiasesSelective PerceptionImpression EffectPresentation effectFraming effect

Escalation of commitment effectCategorisation effectGroup ThinkAction OrientedSelf Interest

Decision Biases

Selective PerceptionImpression EffectPresentation effectFraming effectEscalation of commitment effect

Categorisation effectGroup ThinkAction OrientedSelf Interest

Decision Biases

Selective PerceptionImpression EffectPresentation effectFraming effectEscalation of commitment effectCategorisation effect

Group ThinkAction OrientedSelf Interest

Decision Biases

Selective PerceptionImpression EffectPresentation effectFraming effectEscalation of commitment effectCategorisation effectGroup Think

Action OrientedSelf Interest

Decision Biases

Selective PerceptionImpression EffectPresentation effectFraming effectEscalation of commitment effectCategorisation effectGroup ThinkAction Oriented

Self Interest