NAME: CLAUDIA PUTRI ADISKA

NPM: 2205170093
SUBJECT: MANAGEMENT

RESUME: DECISION MAKING, LEARNING, CREATIVITY, AND

ENTREPRENEURSHIP

A. The Nature of Managerial Decision Making

Managerial decision making refers to the process through which managers or
executives in an organization analyze information, evaluate alternatives, and choose the best
course of action to achieve organizational goals. The nature of managerial decision making is
influenced by various factors, including the complexity of the decision, the availability and
reliability of information, the time constraints, and the decision maker's cognitive abilities and
biases. Managerial decision making is an essential part of managing any organization. It
involves making a choice between two or more options by evaluating the pros and cons of
various choices and choosing the best option to achieve a desired outcome.
B. Differentiate Between Programmed and Nonprogrammed Decisions
Programmed and nonprogrammed decisions are two types of decisions that managers
make in an organization. The main differences between programmed and nonprogrammed
decisions are as follows:
Programmed Decisions
a) Repetitive and routine.
b) Common within the organization and largely automated.
c) Documented as procedures, policies, or rules.
d) Do not require a high degree of analysis and evaluation.
e) Structured and straightforward, and can be solved using a set of rules or procedures.
f) Made by following established procedures.
g) Pre-established decision rules.
h) Low-level management involvement.
i) Shorter decision-making time.
j) Examples include making purchase orders, purchasing raw materials, managing
different employee leaves, scheduling employees’ work time, settling normal disputes,
salary increments, and recording of office supplies.
Nonprogrammed Decisions
a) Novel, ambitious, and often incomplete.
b) Unique and unusual.
c) Require thought and attention.
d) Uncertain, ambiguous, non-repetitive, and have fewer degrees of recurrence in the
future.
 e) Higher-level management involvement.
f) Longer decision-making time.
g) Require creativity, intuition, judgment, and logical approaches.
h) Made by thinking out of the box.
i) Examples include developing a new product, entering a new market, responding to a
crisis, and making strategic decisions.

C. Why Nonprogrammed Decision Making is a Complex?

In contrast, nonprogrammed decisions are novel, unstructured decisions that are
generally based on criteria that are not well-defined. With nonprogrammed decisions,
information is more likely to be ambiguous or incomplete, and the decision maker may need
to exercise some thoughtful judgment and creative thinking to reach a good solution. These are
also sometimes referred to as nonroutine decisions or as high-involvement decisions because
they require greater involvement and thought on the part of the decision maker. For example,
consider a manager trying to decide whether or not to adopt a new technology. There will
always be unknowns in situations of this nature. Will the new technology really be better than
the existing technology? Will it become widely accepted over time, or will some other
technology become the standard? The best the manager can do in this situation is to gather as
much relevant information as possible and make an educated guess as to whether the new
technology will be worthwhile. Clearly, nonprogrammed decisions present the greater
challenge.

D. The six steps managers should take to make the best decisions

1) Recognize the need for a decision

The first step is to recognize that there is a decision to be made. Decisions are not made
arbitrarily; they result from an attempt to address a specific problem, need, or
opportunity.
2) Generate Alternatives
Brainstorm potential solutions. Identify all possible options that could solve the
problem.
3) Asses alternatives
Weigh the alternatives. Compare and evaluate the pros and cons of each option.
4) Choose among alternatives
Select an alternative that best meets your objective. Make a decision based on the
analysis of the alternatives.
5) Implement the chosen alternative
Put the decision into action. Take the necessary steps to implement the chosen
alternative.
 6) Learn from feedback
After implementing the decision, evaluate its effectiveness. Determine if the
decision has achieved the desired outcome. If not, identify what went wrong and make
adjustments.

E. How cognitive biases can lead managers to make poor decisions?

Cognitive biases are flaws in decision-making that can impact a manager's
ability to make good decisions. Here are some ways cognitive biases can lead managers to
make poor decisions:
 Overconfidence bias: Overconfidence of one's "correctness" can lead to poor decision-
making. Managers who are overconfident in their decision-making abilities may not
seek out additional information or alternative viewpoints, leading to suboptimal
decisions.
 Anchoring bias: Anchoring bias occurs when people place too much emphasis on a
single piece of information. This can cause the decision-maker to fail to consider other
relevant information, leading to a biased decision.
 Confirmation bias: Confirmation bias occurs when people seek out information that
confirms their existing beliefs or opinions while ignoring information that contradicts
them. This can lead to a narrow-minded approach to decision-making that fails to
consider all relevant information.
 Hindsight bias: Hindsight bias occurs when people believe that they could have
predicted an event after it has occurred. This can lead to overconfidence in future
decision-making and a failure to learn from past mistakes.
 Sunk cost fallacy: Sunk cost fallacy occurs when people continue to invest in a project
or decision because they have already invested time, money, or resources into it, even
if it is no longer the best course of action. This can lead to a failure to cut losses and
move on to a better alternative.
 Bias blind spot: Bias blind spot occurs when people are unaware of their own biases
and assume that they are less biased than others. This can lead to a failure to recognize
and correct for their own biases, leading to poor decision-making.
By being aware of these cognitive biases, managers can take steps to avoid them and make
better decisions for their organizations.

F. The Advantages and Disadvantages of Group Decision Making and Techniques

that can Improve it

 Advantages
More information: A group is better equipped as far as information is concerned. An individual
cannot have all the information that is available to a group as it consists of several individuals.
Diversity of views: A group usually provides a platform for people to present their ideas. Group
dynamics is more likely to draw out participation from people who may otherwise be hesitant
to talk or interact. It encourages people to take an initiative as they feel part of the decision-
making process.
Increased acceptance of solutions: Group members who participated in making a decision are
likely to support the decision and encourage others to accept it enthusiastically.
Synergy: The whole is greater than the sum of its parts. When a group makes a decision
collectively, its judgment can be keener than that of any of its members.
 Disadvantages
Time-consuming: Group decision making is quite expensive in terms of time, money, energy,
and man-hours.
Groupthink: Groupthink occurs when a group of people conform to the opinions or decisions
of the group, even if it goes against their own beliefs or values.
Dominance of a few members: In some groups, a few members may dominate the discussion,
leading to a biased decision.
Bitter feelings between members: Members may be unclear about their roles, and if not handled
well, there could be some bitter feelings between the members.
To improve group decision making, managers can use the following techniques:
 Techniques to Improve Group Decision Making
Brainstorming: Brainstorming is a technique that encourages group members to generate as
many ideas as possible without evaluating them.
Nominal group technique: In this technique, each group member silently and independently
rank-orders the ideas. The idea with the highest aggregate ranking determines the final
decision.
Delphi technique: The Delphi technique involves a series of questionnaires sent to a panel of
experts. The responses are then analyzed and used to develop a consensus decision.
Quality circles: Quality circles are groups of employees who meet regularly to identify,
analyze, and solve work-related problems.
By using these techniques, managers can improve the quality of group decision making and
avoid some of the disadvantages associated with it.

G. The Role that Organizational Learning and Creativity Play in Helping Managers
to Improve Their Decisions
Organizational learning and creativity play important roles in helping managers improve their
decision-making. Here's how:
 Organizational Learning
Improves performance: Organizational learning involves the acquisition of knowledge and
skills by individuals and teams within an organization, which leads to improved performance.
Increases ability to make informed decisions: Organizational learning helps managers increase
their ability to make informed decisions by providing them with the necessary knowledge and
skills.
Promotes creativity: A learning organization is one that promotes creativity, or the ability of a
decision maker to discover original and novel ideas that lead to feasible solutions.
Facilitates continuous improvement: Organizational learning facilitates continuous
improvement by encouraging employees to learn from their mistakes and successes.
 Creativity
Leads to innovative solutions: Creativity leads to innovative solutions that can help
organizations stay competitive.
Encourages exploration of new ideas: Creativity encourages the exploration of new ideas,
which can lead to breakthroughs in decision-making.
Promotes risk-taking: Creativity promotes risk-taking, which can lead to new and better ways
of doing things.
Fosters a culture of innovation: Creativity fosters a culture of innovation, where employees are
encouraged to think outside the box and come up with new and better ways of doing things.
By promoting organizational learning and creativity, managers can improve their decision-
making by making informed decisions, exploring new ideas, and fostering a culture of
innovation. This can lead to better outcomes for their organizations and help them stay
competitive in a rapidly changing business environment.

H. How managers can encourage and promote entrepreneurship to create a learning

organization
Rewarding creativity: An entrepreneurial culture can be developed by rewarding creativity and
innovation. This can be done by recognizing and rewarding employees who come up with new
ideas or solutions.
Developing a statement to encourage entrepreneurship: Managers can develop a statement that
encourages entrepreneurship and communicates the importance of innovation and risk-taking.
Creating a bond between employees: Managers can create a bond between employees by
fostering a sense of community and collaboration. This can be done by encouraging teamwork
and creating opportunities for employees to work together on projects.
Promoting intrapreneurship: Intrapreneurs are employees who act like entrepreneurs within an
organization. Managers can promote intrapreneurship by giving employees the freedom to
pursue their own ideas and projects.
Hiring like-minded people: Hiring employees who are motivated, creative, and innovative can
help create a productive and inspiring culture that encourages entrepreneurship.
Sharing struggles and discussing ideas: An entrepreneurial team will openly share and discuss
ideas, debate approaches, and work together to develop healthy, calculated risks more likely to
succeed.
Encouraging risk-taking: An entrepreneurial culture must involve some form of risk-taking,
but teams can work together to develop healthy, calculated risks more likely to succeed.

I. Differentiate Between Entrepreneurs and Intrapreneurs

Entrepreneurs and intrapreneurs are similar in that they both have an entrepreneurial mindset
and are willing to take risks. However, there are some differences between the two:
 Entrepreneurs
Start their own businesses: Entrepreneurs start their own businesses and are responsible for all
aspects of the business.
Assume all risks: Entrepreneurs assume all risks associated with starting and running a
business.
Work independently: Entrepreneurs work independently and are not part of an existing
organization.
 Intrapreneurs
Work within an organization: Intrapreneurs work within an existing organization.
Assume some risks: Intrapreneurs assume some risks associated with developing new products
or services within an organization.
Collaborate with others: Intrapreneurs collaborate with others within the organization to
develop new products or services.
By understanding the differences between entrepreneurs and intrapreneurs, managers can
better promote and encourage entrepreneurship within their organizations and create a learning
organization that fosters innovation and growth.