Week 3

“Decision Makers’ Aspect:

Individuals as Decision

Makers”

Dr Ramesh Vahidi r.vahidi@soton.ac.uk

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Southampton Business School

 

 

Lecture Content: Decision Makers’ Aspect of DM

• Strategies

• Success

• Context

• Stakeholders req., expec., goals, …

• DM Models

• DM in groups

• Problem identification & formulation techniques

• Human factors & Decisions

• Heuristics, Shortcuts, Approximate methods

• Perception of Reality

• Decision Types

• Related disciplines

• Classification of project decision

• Interdependence

• Reality in DM Conceptual Aspect

Decision Makers’

Aspect

Decision Elements

Aspect

Decision Methods & Processes Aspect

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Swiss federal Institute of technology in Zurich 800 technical failures

3

→ 504 fatal incidents,

→ 592 injuries and

→ loss of millions of dollars

• Insufficient knowledge (36%)

• Underestimation of influence (16%)

• Ignorance, carelessness, neglect (14%)

• Forgetfulness (13%)

• Relying upon others without sufficient control (9%)

• Objectively unknown situation (7%)

• Other factors related to human error (5%).

(Hall, 2005 cited in Virine and Trumper, 2008, p.16) (Could also see: https://hallassociateshsval.com/presentations)

People in projects … so what? MANG6312©RameshVahidi 2022

Psychology

 

 

Aims of Week 3

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• To enable you to appreciate the potential factors influencing your/others’ decisions and decision making style.

• To provide bases for analysing and reflecting on your/others’ decision making.

• To develop the ability of foreseeing consequences of your/others’ decisions.

 

 

“Let’s see, which factors

might affect our decisions,

judgments, actions,

reactions.”

MANG6312©RameshVahidi 20225

Southampton Business School

 

 

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I am able to make my

best decision when I am

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MANG6312 – Week 3

DM in PM

195-734-678

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Some (Main) Human Factors Affecting Individuals’ Decision Making

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(Frame, 2012, p.118) → Must Read!

 

 

Human Factors Affecting Individuals’ DM Psychological State

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Our psychological state:

• Anxiety

• Annoyance

• Identity crisis

• Morale

• Delusion (misunderstanding)

• Elation (excitement)

* These might affect our decisions: e.g. a big donation to a charity depending in case of extreme happiness … celebrities weddings donations!

– How could this inform your PM style?

 

 

Human Factors Affecting Individuals’ Cognitive State

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How our brain understands things, learns and reflects from experiences, e.g.:

• Perception

• Thinking

• Remembering

• Dealing with symbols

• Attention

• Handling information

• Problem solving

* The level of our capabilities in respect to any of the above will impact our decisions. – How could this inform

your PM or DM in PM style?

Stock Market

 

 

Human Factors Affecting Individuals’ Competence and Capability

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Competent and Capable People: • Know their job • Do things effectively (doing the right thing) • Take implementable approaches

They are good at formulating decisions through:

• Defining: clear definition of the scope of the problem and focus on relevant factors

• Determining: Identify the relation between problem components

• Deciding: use relevant data, anticipate the consequences and make a choice accordingly.- What actions you could

take to enhance these capabilities in DM in PM? Competent

in family relations?!

 

 

Human Factors Affecting Individuals’

Intelligence

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• Intelligence has different aspects (including Emotional Intelligence – IE)

• One cannot be equally intelligent in every aspect

• Anyone could have higher intelligence in some certain area(s) than the others

Intelligent people can:

• Frame certain decisions easier than others

• See positive and negative consequences

• See subtle points

– How could this impact the management of your team in making project decisions? Always +?!

Jack Ma

 

 

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Features of creative people:

– See and operate differently

– Reject the imposed constraints

– Look from new perspectives

– Wider range of options

Human Factors Affecting Ind. DM

Creative Capacity

– What are the impacts of having a highly creative

person in decision making process? Always +?!!

Zaha HadidPicasso

 

 

Human Factors Affecting Ind. DM ‘Personality’

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Sometimes predicting peoples’ approach to a decision might be easy if we know their personalities.

E.g., Possibility of an investment decision by pessimist vs. optimist

– How could this inform/affect your PM

style?

 

 

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– One of the main things a PM

does is DM!

– Now you know the main

factors affecting our DM.

– In general: How could these

help you to become a better

project manager/decision

maker?

https://vevox.app/#/m/184965850

MANG6312 – Week 3

DM in PM

195-734-678

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“Let’s Extend on the Impact

of ‘Personality’ on our

Judgments and Decisions ”

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Southampton Business School

 

 

Main Personality Factors affecting Judgment

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Main influencing factors of Personality among numerous ones are:

Propensity towards risk

Openness to change

Judgment acumen (understand/decide things quickly & well – sharpness)

 

 

Main Personality Factors 1: Propensity toward Risk

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Low High

(Frame, 2012, p.126)

 

 

Main Personality Factors 2: Openness to Cha

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