SHMD 129 SPORT MANAGEMENT

1. SHMD 129SPORT MANAGEMENT

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. Step 1: • The 6 advantages: • Better-quality decisions. • More information, more alternatives, & heightened creativity and innovation. • Better understanding of the problem & decisions. • Greater commitment to the decision. • Improved morale & motivation. • Good training.

9. Step 1: • Downside of Group Decision Making: • Careful leadership is required to avoid the following pitfalls of group decision making: • Wasted time & slower decision making. • Satisficing. • Domination by subgroup or individual & goal displacement. • Conformity & groupthink/grouping.

10. 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.

11. 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.

12. 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.

13. STEP 3: GENERATE ALTERNATIVES • Creative Process: • Intelligence & creativity are not highly correlated. • 3 stages in the creative process are: • Preparation. • Incubation & illumination. • Evaluation.

14. STEP 3: GENERATE ALTERNATIVES • Use Information & Technology: • Useful information has 4 characteristics: • Timeliness, • Quality, • Completeness, • Relevance.

15. STEP 3: GENERATE ALTERNATIVES • Get Groups to use Creativity & improvement. • Five widely used methods: • Brainstorming • Synectics • Nominal Grouping • Consensus Mapping • The Delphi Technique

16. STEP 3: GENERATE ALTERNATIVES • 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.

17. STEP 3: GENERATE ALTERNATIVES • Brainstorming (continued): • When selecting members, include varied of people. • 5 – 12 people. • Everyone has equal voice – status differences should be ignored.

18. STEP 3: GENERATE ALTERNATIVES • Synectics: • Novel alternatives are generated through fantasizing. • Focuses on generating novel ideas rather than large number of ideas.

19. STEP 3: GENERATE ALTERNATIVES • 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.

20. STEP 3: GENERATE ALTERNATIVES • 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.

21. Step 3: generate alternatives • 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.

22. 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.

23. Step 4: Select the most feasible alternative • Quantitative: • Mathematical analysis to assess alternative solutions. • Break-even analysis – calculates the volume of sales or incomethat 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.

24. 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.

25. 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.

26. Step 5: implement the decision • Develop a plan of action. • How you implement your plan is crucial to its success or failure.

27. 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.