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The problems associated with construction work such as decreasing quality of work, labor shortages, and safety of labor and working condition of projects can be overcome by new innovative technologies such as automation which has the potential to improve the quality, safety, and productivity of the construction industry.
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Through understanding of: 1 The total construction process, from inspection of the idea through construction and start up, and 2 How construction equipment should be selected and used to produce the intended quality in the most cost-effective manner. What can you learn from this leader making a difference? One perspective proposes that people differ along two dimensions in the way they approach decision-making. Linear-Nonlinear Thinking Profile 7. These four dimensions are collapsed into two styles.
The nonlinear thinking style is characterized by a preference for internal sources of information and processing this information with internal insights, feelings, and hunches to guide decisions and actions.
See Exhibit for the common decision-making biases.
Overconfidence bias occurs when decision-makers tend to think that they know more than they do or hold unrealistically positive views of themselves and their performance. Immediate gratification bias describes decision-makers who tend to want immediate rewards and avoid immediate costs. The anchoring effect describes when decision-makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information.
Selective perception bias occurs when decision-makers selectively organize and interpret events based on their biased perceptions. Confirmation bias occurs when decision-makers seek out information that reaffirms their past choices and discount information that contradicts their past judgments.
Framing bias occurs when decision-makers select and highlight certain aspects of a situation while excluding others. Availability bias is seen when decision-makers tend to remember events that are the most recent and vivid in their memory. Decision-makers who show representation bias assess the likelihood of an event based on how closely it resembles other events or sets of events. Randomness bias describes the effect when decision-makers try to create meaning out of random events.
The sunk costs error is when a decision-maker forgets that current choices cannot correct the past. Instead of ignoring sunk costs, the decision-maker cannot forget them. In assessing choices, the individual fixates on past expenditures rather than on future consequences. Self-serving bias is exhibited by decision-makers who are quick to take credit for their successes and blame failure on outside factors.
Hindsight bias is the tendency for decision-makers to falsely believe, once the outcome is known, that they would have accurately predicted the outcome. Overview Managerial Decision-Making 1. Exhibit provides an overview of managerial decision- making. Managers want to make good decisions because doing so is in their best interests. Regardless of the decision, it has been shaped by a number of factors, which are discussed in Chapter 7.
How can managers make effective decisions under these conditions? Guidelines for Effective Decision-Making 1. Understand cultural differences. Create standards for good decision-making. Know when it is time to call it quits.
Use an effective decision-making process.
Build highly reliable organizations HROs that practice five habits: Do not be tricked by your own success. Defer to the experts on the front lines. Let unexpected circumstances provide the solution. Embrace complexity. Anticipate, but also recognize the limits to your ability to anticipate. Big Data and Decision-Making Big data is the vast amount of quantifiable information that can be analyzed by highly sophisticated data processing. With this type of data at hand, decision-makers have very powerful tools to help them make decisions.
Goals are needed when collecting and using this type of information. Decisions are made throughout the performance of all four functions of management. Almost anything a manager does in terms of planning, organizing, leading, and 9. The pervasiveness of decision-making in management explains why managers are often called decision-makers.
Analytical thinking The decision-making process consists of eight steps: Compare and contrast the four ways managers make decisions.
The assumptions of rationality are as follows: Bounded rationality says that managers make rational decisions but are bounded limited by their ability to process information.
Satisficing happens when decision-makers accept solutions that are good enough. With escalation of commitment, managers increase commitment to a decision even when they have evidence it may have been a wrong decision. Intuitive decision- making means making decisions on the basis of experience, feelings, and accumulated judgment.
Using evidence-based management, a manager makes decisions based on the best available evidence. Explain the two types of problems and decisions. Contrast the three decision- making conditions. Programmed decisions are repetitive decisions that can be handled by a routine approach and are used when the problem being resolved is straightforward, familiar, and easily defined structured.
Nonprogrammed decisions are unique decisions that require a custom-made solution and are used when the problems are new or unusual unstructured and for which information is ambiguous or incomplete. Risk is a situation in which a manager can estimate the likelihood of certain outcomes. Would you call yourself a linear or nonlinear thinker? What are the decision-making implications of these labels?
What are the implications for choosing where you want to work? Student responses to these questions will vary. A linear thinker is one who is more logical and rational in searching for and processing information. A nonlinear thinker relies more on instincts and feelings in searching for and processing information.
The decision-making implication of this label is that it describes the way we think or process information and in turn, influences how we tend to make decisions. Organizations need both linear and nonlinear thinkers. Each of these styles provides a different perspective. Although computer and software tools allow managers to gather information and analyze it more efficiently, utilizing computers does not necessarily allow managers to be more rational.
Looking at the assumptions of rationality see Exhibit 6.
A balance is required. Is there a difference between wrong decisions and bad decisions? Why do good managers sometimes make wrong decisions? Bad decisions? How can managers improve their decision-making skills?
Managers can improve their decision-making skills by focusing on six characteristics of effective decision- making, including focusing on important criteria, logic and consistency; blending subjective and objective thinking with analysis; requiring the information necessary to resolve a particular dilemma; gathering relevant and informed opinions; and remaining flexible. This dilemma describes a situation where a baggage handler refused to load a dangerously thin hunting dog with bloody paws and covered in sores onto a flight.
The baggage handler was fired but later reinstated with back pay. Ask the students: Was the decision by the supervisor to fire the baggage handler appropriate? In this exercise, students work on developing their creativity skills using eight steps suggested by the authors. There are 95 possible words that can be generated. The group should develop a list of practical suggestions for making good decisions. In preparation for this exercise, you might initiate a class discussion centered on a particular decision-making situation.
Ask the class if anyone is considering making a large download, such as a car, stereo, computer, or house. Although one student may think that having heated car seats is a must, others may totally disregard this criterion. This class activity should help students to become more comfortable and skillful in using the decision-making process. Write a description of five of those decisions, using the steps in the decision-making process as your guide.
Also, describe whether you relied on external or internal sources of information to help you make each decision and whether you think you were more linear or nonlinear in how you processed that information.
Analytical thinking Find two examples each of procedures, rules, and policies. Bring your examples to class and be prepared to share them. Analytical thinking Write a procedure, a rule, and a policy for your instructor to use in your class. Be sure that each one is clear and understandable. And be sure to explain how it fits the characteristics of being a procedure, a rule, or a policy.
Analytical thinking Find three examples of managerial decisions described in any of the popular business periodicals Wall Street Journal, BusinessWeek, Fortune, etc.
Write a paper describing each decision and any related information, such as what led to the decision, what happened as a result of the decision, etc.
What did you learn about decision-making from these examples? Analytical thinking Interview two managers and ask them for suggestions on what it takes to be a good decision-maker. Write down their suggestions and be prepared to present them in class. Noel M. Introduction industries hereafter referred to collectively a.
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Bearings and Auxiliary Parts 7. Machines can be driven by animals and people, by natural forces such as wind This statistic represents the projected global revenue from construction equipment sales between and In , it is expected that this market will be sized at almost 90 billion U.
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