Decision making styles, Study notes of Business Management and Analysis

Decision Making Process & Styles

Typology: Study notes

2014/2015

Uploaded on 07/12/2015

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DECISION MAKING STYLES
Decision making style proposes people differ along two dimensions in the way they approach
decision making. The first is an individual’s way of thinking. Some people tend to be rational
and logical and others tend to be creative and intuitive. The other dimension describes an
individual’s tolerance for ambiguity. Some people have a low tolerance for ambiguity and others
have high level of ambiguity. Based on way of thinking and tolerance for ambiguity decision
making styles can be of four types.
(1) Directive Style: Managers using directive style have low tolerance for ambiguity and are
rational in their way of thinking. They are efficient and logical. They make fast decisions with
minimal information and assessing few alternatives.
(2) Analytic Style: Managers with an analytic style have high tolerance for ambiguity than do
directive type and are rational in their way of thinking. They need more information and consider
more alternatives. They are characterized as careful decision makers with the ability to cope with
unique situations.
(3) Conceptual Style: Managers with conceptual style have high tolerance for ambiguity and
an intuitive way of thinking. They tend to be very broad to their outlook and consider many
alternatives. They are at finding creative solutions to problems.
(4) Behavioral Style: Managers with behavioral style have low tolerance for ambiguity and
an intuitive way of thinking. They work well with others. They are receptive to suggestions from
others. They often use meetings to communicate although they try to avoid conflict. They want
to be accepted by others.
Some managers will rely almost exclusively on their dominant style, while others are flexible
and can shift their style depending on the situation. Some may take their time carefully weighing
alternatives and considering riskier options whereas others may be more concerned about getting
suggestions from others before making decisions. This doesn't make one approach better than the
other. It is just their decision-making styles, which are different.

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DECISION MAKING STYLES

Decision making style proposes people differ along two dimensions in the way they approach decision making. The first is an individual’s way of thinking. Some people tend to be rational and logical and others tend to be creative and intuitive. The other dimension describes an individual’s tolerance for ambiguity. Some people have a low tolerance for ambiguity and others have high level of ambiguity. Based on way of thinking and tolerance for ambiguity decision making styles can be of four types.

(1) Directive Style: Managers using directive style have low tolerance for ambiguity and are

rational in their way of thinking. They are efficient and logical. They make fast decisions with minimal information and assessing few alternatives.

( 2) Analytic Style: Managers with an analytic style have high tolerance for ambiguity than do

directive type and are rational in their way of thinking. They need more information and consider more alternatives. They are characterized as careful decision makers with the ability to cope with unique situations.

(3) Conceptual Style: Managers with conceptual style have high tolerance for ambiguity and

an intuitive way of thinking. They tend to be very broad to their outlook and consider many alternatives. They are at finding creative solutions to problems.

(4) Behavioral Style: Managers with behavioral style have low tolerance for ambiguity and

an intuitive way of thinking. They work well with others. They are receptive to suggestions from others. They often use meetings to communicate although they try to avoid conflict. They want to be accepted by others.

Some managers will rely almost exclusively on their dominant style, while others are flexible and can shift their style depending on the situation. Some may take their time carefully weighing alternatives and considering riskier options whereas others may be more concerned about getting suggestions from others before making decisions. This doesn't make one approach better than the other. It is just their decision-making styles, which are different.