Summary of decision making tools Reflect bounded rationality

Summary of decision making tools Reflect “bounded rationality” Hidden assumptions Helpful if assumptions hold Apply these tools to the contexts where they are most suitable Adjust decision making when there is a change 1

Electronic Child Health Network (e. CHN) w Understand planning issues under the real situation w Further understanding of the decision making process w Become familiar with the strategy analytical tools 2

Why develop CHN? New Entrants Suppliers Competitive Battleground Buyers Substitute products or services Porter’s five forces model 3

How does CHN work? CHN RPC North RPC Center Hospitals, other Health care providers, and patients RPC West Hospitals, other Health care providers, and patients RPC Southeast Hospitals, other Health care providers, and patients 4

e. CHN Consists of: 1. One web site for patients: YCH a. b. c. For parents For kids My child is sick 2. One web site for health care professionals (PROFOR) 3. One secure system to share a child’s medical records (HDN) 5

Benefits of e. CHN patients Physicians Hospitals Canadian health care system 6

What are problems faced by Andrew Szende 7

What makes e. CHN unique? 8

What are criteria? 9

What are alternatives? 10

Summary There are different types of decision making problems Rationality assumption doesn’t hold especially for unstructured problem Real decision problems are very complex Group decision making is a way to improve the quality of decision making 11

Problem Clarity Well-defined Goal No Constraints Known Options objective Evaluation Assumptions of Rational Decision Making Maximum Payoff 12

Types of decision making problems Top Level in Organization Type of Problem Poorly Structured Nonprogrammed Decisions Programmed Decisions Well-Structured Lower 13

A Model of Bounded Rationality Ascertain the Need for a Decision Set “Satisficing” Criteria Identify a Limited Set of Alternatives Compare Alternatives Against Criteria Simplify the Problem Expand Search for Alternatives No Select the First “Good Enough” Choice A “Satisficing” Alternative Exists Yes 14

Decision-Making Styles Tolerance for Ambiguity High Analytic Conceptual Directive Behavioral Low Rational Way of Thinking Intuitive 15

Individual Versus Group Decision Making Strengths of Individuals Strengths of Groups Speed Input and Diversity Clear Accountability Higher Quality Decisions Consistent Values Increased Acceptance 16

Group Decision Making Advantages Disadvantages More information Time-consuming More alternatives Majority domination Increased acceptance Pressures to conform Legitimacy Unclear responsibility 17

Brainstorming Group Decision Making Nominal Group Technique Electronic Meetings 18

National Culture and Decision Making Decision Style Degree of Risk 19