SHMD 129

SPORT MANAGEMENT

DECISION-MAKING MODEL The model consists of 6 steps:

Step 1: Define the problem or opportunity.Step 2: Set objectives & criteria.Step 3: Generate alternatives.Step 4: Select the most feasible alternatives.Step 5: Implement the decision.Step 6: Control the results.

STEP 1: DEFINE THE PROBLEM OR OPPORTUNITY Define the problem you want to

solve or opportunity you want to capitalize on.

This step requires you classify the problem, select an appropriate level of employee participation, & distinguish the cause of the problem from its symptoms.

STEP 1: DEFINE THE PROBLEM OR OPPORTUNITY

Classify the problem:

Problems can be classified in terms of how the decision is structured, the conditions in which decisions are made, and the decision model used.

STEP 1: DEFINE THE PROBLEM OR OPPORTUNITY

Decisions can be categorized as programmed or nonprogrammed:

Programmed Decisions – recurring or routine situations in which the decision maker should use decision rules or organizational policies & procedures to make decisions.

Nonprogrammed Decisions – significant & nonrecurring & nonroutine situations in which the decision makers should use the decision-making model.

STEP 1: DEFINE THE PROBLEM OR OPPORTUNITY

Nonprogrammed decisions take longer to make than programmed decisions.

Must be able to differentiate between the 2 types of decisions, because they alert you to the time & effort you should be spending.

Upper-level managers typically make more nonprogrammed decisions than do lower-level managers, who tend to make programmed decisions.

STEP 1: When a problem arises, managers must

choose the best people to solve it. The key to successful group decisions is

to avoid the pitfalls and capitalize on the strengths of the group process.

The upside of Group Decision Making:When group members participate in the

decision process, 6 advantages often occur.

STEP 1: The 6 advantages:1. Better-quality decisions.2. More information, more alternatives, &

heightened creativity and innovation.3. Better understanding of the problem &

decisions.4. Greater commitment to the decision.5. Improved morale & motivation.6. Good training.

STEP 1: Downside of Group Decision Making:

Careful leadership is required to avoid the following pitfalls of group decision making:

1. Wasted time & slower decision making.2. Satisficing.3. Domination by subgroup or individual

& goal displacement.4. Conformity & groupthink/grouping.

STEP 2: SET OBJECTIVES & CRITERIA Once you’ve defined the problem, set

an objective that states end result in solving problem or capitilizing opportunity.

Objective answers question ‘Why am I doing this?’ so the objective states what the individual, group, or organization intends to accomplish.

When writing objective, specify criteria for achieving it.

Criteria are standards that must be met to accomplish the objective.

STEP 3: GENERATE ALTERNATIVES

After defining the problem & setting objectives & criteria, generate alternatives.

Often there’s more than one way to solve a problem.

Base alternatives on evidence, not just opinion.

In this section, we examine innovation & creativity, the use of information & technology to generate alternatives, & group methods for generating creative alternatives.

STEP 3: GENERATE ALTERNATIVES Use Innovation & Creativity:

Innovation alters what is established by introducing something new.

Product innovations are changes in outputs to increase consumer value & development of new outputs.

Process innovations are changes in the transformation of inputs into outputs.

Creativity is a way to thinking that generates new solutions to problems & new ways to approach opportunities.

STEP 3: GENERATE ALTERNATIVES Creative Process:

Intelligence & creativity are not highly correlated.

3 stages in the creative process are:1. Preparation.2. Incubation & illumination.3. Evaluation.

STEP 3: GENERATE ALTERNATIVES Use Information & Technology:

Useful information has 4 characteristics:1. Timeliness,2. Quality,3. Completeness,4. Relevance.

STEP 3: GENERATE ALTERNATIVES Get Groups to use Creativity &

improvement. Five widely used methods:

1. Brainstorming2. Synectics3. Nominal Grouping4. Consensus Mapping5. The Delphi Technique

STEP 3: GENERATE ALTERNATIVES1. Brainstorming: Group members generate as many

alternatives as they can in a short time. Group presented with a problem &

asked to develop as many solutions as possible.

Short time period (10-20 min) is specified.

Members encouraged to make wild, off-the-wall suggestions.

Build on suggestions made by others. Not to react in anyway to any

contribution.

STEP 3: GENERATE ALTERNATIVES1. Brainstorming (continued): When selecting members, include varied

of people. 5 – 12 people. Everyone has equal voice – status

differences should be ignored.

STEP 3: GENERATE ALTERNATIVES2. Synectics: Novel alternatives are generated

through fantasizing. Focuses on generating novel ideas

rather than large number of ideas.

STEP 3: GENERATE ALTERNATIVES3. Nominal Grouping: Structured voting method is used to

generate & evaluate alternatives. Involves 6 steps:List ideas.Record ideas.Clarify the ideas.Rank the ideas.Discuss the ranking.Vote.

STEP 3: GENERATE ALTERNATIVES4. Consensus Mapping: Develops group agreement on a

problem solution. If agreement can’t be reached, the

group doesn’t make a decision. Consensus mapping can be used after

brainstorming. Benefit – the group ‘owns’ the solution,

so members are more committed to implementing it.

STEP 3: GENERATE ALTERNATIVES5. Delphi Technique:• A series of confidential questionnaires

are used to refine a solution.• Response from the 1st questionnaire

are analyzed & resubmitted to participants in a 2nd questionnaire.

• This process may continue for 5 or more rounds before a consensus emerges.

• These group members are experts in their field, and are outsiders.

STEP 4: SELECT THE MOST FEASIBLE ALTERNATIVE Make evidence-based decisions. Two types of techniques will assist you

in this process. Quantitative & Cost-benefit analyses.

STEP 4: SELECT THE MOST FEASIBLE ALTERNATIVE Quantitative:

Mathematical analysis to assess alternative solutions.

Break-even analysis – calculates the volume of sales or income that will result in a profit – involves estimating the volume of sales & cost of production, break-even point occurs when no profit or loss results.

Capital budgeting – used to analyze alternative investments in major long-term resources – goal is to find the quickest payback.

STEP 4: SELECT THE MOST FEASIBLE ALTERNATIVE Quantitative:

Queuing Theory – Addresses waiting time, companies have staff providing customer service, using too many staff to wait on customers is an inefficient use of resources & costly, too few staff providing customer service can also be costly if poor service drives customers away.

STEP 4: SELECT THE MOST FEASIBLE ALTERNATIVE Cost-benefit Analysis:

Combines subjective methods & mathematical techniques to compare alternative courses of action.

Also called pros & cons analysis.Looks at advantages & disadvantages of

each alternative.

STEP 5: IMPLEMENT THE DECISION Develop a plan of action. How you implement your plan is crucial

to its success or failure.

STEP 6: CONTROL THE RESULTS Establish checkpoints to determine

whether the chosen alternative is solving the problem.

If not, consider corrective action. If implementation continues to go

poorly, don’t remain with your decision.