Decision Making Style

Topics: Decision making, Cognition, Risk Pages: 8 (2290 words) Published: April 9, 2012
What is decision making;
The process of selecting from several choices products or ideas, and taking action. Decision making includes followings :
1.A position or opinion or judgment reached after consideration . * 2.Choosing between alternative courses of action using cognitive processes - memory, thinking, evaluation, etc . *
* 3.The process of mapping the likely consequences of decisions, working out the importance of individual factors, and choosing the best course of action to take. What is a decision?
1.the act of making up your mind about something, or
2.a position or opinion or judgment reached after consideration. (two significant influence on decision making are values and cognitive perception).Both effect how a decision maker interprets and respond a particular stimuli and condition. Value: are integral to thoughts and actions ,they influence the evaluation of both problems and solution. Cognitive perception: It is the study of how people perceive, remember, think, speak, and solve problems. Decision making steps : or decision making model:

1. State the problem
2. Identify alternative
3. Evaluate the alternative
4. Make a decision
5. Implement your decision
This decision making model in five steps shows a logical structured methodology for making a decision. The discipline that it provides will guide you to the goal of good decision making. Decision making effected by:

1. Lack of information
2. Lack of context
3. To much information
4. Lack of feed back
5. Cultural barriers
6. Action reaction
Decision making styles of business leaders:
Four type of decision making styles:

Decision style model
Analytic Strong need for achievement| ConceptualStrong need for achievement| DirectiveStrong need for power| BehavioralStrong need for affiliation|

Analytic decision maker have strong need for achievement in the form of new challenges. They have greater tolerance for ambiguity then directive decision makers. Conceptual decision maker are also achievement oriented like analytic, but they focus on extrinsic rewards, like recognition, praise, and freedom. They have high degree of cognitive complexity. Directive decision maker are results oriented. They want dominance on others. They have low ambiguity and low level of cognitive complexity. Behavioral decision maker have need for affiliayion, and have low cognitive complexity, but they are people oriented, they have ability to communicate easily, they feel pleasure while working for their peers and subordinates. The decision making style of Pakistani business leaders are more behavioral then those of American business leaders: Hofstede cultural dimensions help to explain this:

Hofstede(1980) identified 4 dimensions of work-related values for comparison: * Power distance
* Individualism
* Masculinity
* Uncertainty Avoidance

What is culture?
There are many different countries in the world, each with its own specific culture, or way of doing things. While most people have a sense of what culture is, it is difficult to measure, compare and analyse such a diverse and all-pervasive subject. In an attempt to define some measurable and quantifiable aspects of culture, Geert Hofstede developed the idea of cultural dimensions. (hoecklin, 3011) (hoecklin, 3011) (hoecklin, cultural dimensions, 3 nov 2011). Power Distance Index (PDI)

Power distance can be defined as the degree to which less powerful people accept and even expect that power is distributed unequally. It is important to note the PDI does not measure the actual difference in power between to individuals, but rather how that power is perceived. For example, in a worker-manager example, the actual authority and power of the manager will be similar or even identical across cultures with differing PDI scores, but the way that this power is perceived by both members is...
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