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Security Management
home page > Unit 4: Planning & decision making
Frisch and Clemen (1994) says individuals need 3 basic, interrelated strengths:
- "use consequentialist decision strategies, making decisions on thee desirability and likelihood of various outcomes"
- "thoroughly anticipate and identity the possible consequences of their decision"
- "need to use compensatory
decision rules to assess what they will 'tradeoff' when choosing
particular alternatives over others.
- Intuition and Decision Making
"intuition involves synthesizing bits of information and experiences into an integrated, holistic perception of the issue(s) at hand. When making decisions, decision makers, without conscious thought, draw from these stored experiences and the answer 'flashes' before them. In fact, decision makers may be unable to consciously understand how they arrived at the answer." (Khatri and Ng, 2000)- based on deep understanding of a situation
- subconscious, complex, and quick
- several types (Sauter, 1999):
- illumination: "when individual suddenly is aware of information without really knowing how or why."
- Detection: "when the person's mind is elsewhere and suddenly finds a solution or insight to the problem"
- evaluative: provides "choice or alternatives and occurs when a decision maker has '6th sense"
- can be helpful in crisis situations where decision is needed quickly
- can be dangerous: ignore relevant
facts, play to biases
- Risk Taking
Often thought of negatively, but can be impetus for change, innovation. Some managers may avoid risk by focusing on potential downside.- Fears of risk:
- failure
- success
- what others will think
- uncertainty
- Fears of risk:
- Creativity
"Creativity is a process whereby one becomes aware of problems and has a response or an idea that is novel and adaptive. A creative person uses intuition, combined with spontaneity and risk taking, to come up with a novel solution to a problem."- differs from intuition: need intuition to produce creative ideas (Amitabh and Kleiner, 1995)
- like risk taking, and intuition, well suited to situations where you have little time, great pressure, few precedents, limit facts (and they don't suggest which way to go), alternative solutions with good arguments for each (Jalan and Kleiner, 1995)
Creativity
Kick Starts (how to build your creativity skills)
- Characteristics of creative
people (Perkins, 1981):
- objective, encourage criticism
- open-minded, have potential to see issue from various viewpoints
- high tolerance for complex environments
- passion for work
- effective problem solvers
- risk takers
- Entrepreneurship
Entrepreneurs aren't necessarily those who start new companies (can also, for example, be an intrepreneur, within a company). Characteristics:- opportunity seeker
- determined to succeed
- creative, innovative
- risk takers (and see failure
as learning experience)
- but not excessive risk-takers: they uses specific biases to sort through information, piece things together, allows speedier decision making
- self-confident, resilient
- sometimes the qualities that make an entrepreneur excellent for a start-up are inappropriate for mature organizations