Decision Making −

UNIT 7 DECISION MAKING − Techniques and

Processes
TECHNIQUES AND PROCESSES
Structure
7.1 Introduction
Objectives
7.2 Techniques Used in Different Steps of Decision Making
7.3 Individual versus Group Decision Making
7.4 Overcoming Barriers to Effective Decision Making
7.5 Summary
7.6 Key Words
7.7 Terminal Questions
7.8 Answers

7.1 INTRODUCTION

In this unit, various techniques involved in decision making e.g. brainstorming,

semantics, and nominal grouping are described and discussed. Then the Unit
describes various methods for identification, selection of various alternatives
and implementation of decisions made. Differences and similarities between
individual versus group decision making are then explained, including the
phenomenon of groupthink. Various barriers to effective decision making are
finally enumerated.

Objectives
After studying this unit, you should be able to:

• understand the necessity of identifying and evaluating a reasonable number

of possible alternative courses of action for accomplishing organisation
objectives;
• display familiarity with various means for generating alternative courses of
action;
• decide to what extent participation of others is desirable; when and how
group decision strategies should be used; and
• diagnose roadblocks to effective decision making and develop some
strategies to overcome them.

7.2 TECHNIQUES USED IN DIFFERENT STEPS OF

DECISION MAKING

In the models of decision making, you must have observed that any systematic
approach to decision making starts with a proper definition of the problem.
You will often experience that a problem well defined is a problem half-solved
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Introduction to because the proper definition helped you to search at relevant place for
Management promising alternatives. You would also agree that a “fair” approach to
decision-making demands that parameters (for judging alternatives which are
sometimes referred to as “criteria”, “level of aspiration”, “decision rules”, etc.)
should be explicitly developed before the alternatives are generated and not
after. This imperative minimises the chances of unnecessary compromise
which is the hall-mark of a low-quality decision. However, once you have
developed the criteria, keep them aside and forget about them at the time of
generation of the alternatives. This dissociation of criteria from the alternative-
generation phase will improve your chance of coming up with a reasonably
sufficient number of alternatives. You will understand the importance of
generating a “reasonable” number of alternatives by the simple realisation that
the quality of a decision can be no better than the quality of the alternatives that
you identify.

Identification of Alternatives

Generation of a reasonable number of good alternatives is usually no

problem. Occasionally, however, developing a variety of good alternatives can
be a complex matter requiring creativity, thought, and study. Three means for
generating alternatives are particularly well-known. These are brainstorming,
synectics, and nominal grouping.

Brainstorming: Developed by Alex F. Osborn, brainstorming is the oldest and

best known technique for stimulating creative thinking. It involves the use of a
group whose members is presented with a problem and is asked to develop as
many potential solutions as possible. Members of the group may all be
employees of the same firm or outside experts in a particular field.
Brainstorming is based on the premise that when people interact in a free and
uninhibited atmosphere they will, generates creative ideas. That is, as one
person generates an idea it serves to stimulate' the thinking of others. This
interchange of ideas is supposedly contagious and creates an atmosphere of
free discussion and spontaneous thinking. The objective is to produce as many
ideas as possible in keeping with the belief that the larger the number of ideas
produced, the greater the probability of identifying an acceptable solution.

Brainstorming is governed by four important rules:

1. Criticism is prohibited Judgement of ideas must be withheld until all ideas

have been generated. It is believed that criticism inhibits the free flow of
ideas and group creativity.

2. Freewheeling’ is welcome. The wilder the idea the better. It is easier to

‘tame down’ than to ‘think up’ ideas.

3. Quantity is wanted. The greater the number of ideas, the greater the
likelihood of an outstanding solution.

4. Combination and improvement are sought. In addition to contributing ideas

of their own, group members suggest how ideas of others can be improved,
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 or how two or more ideas can be combined into still another idea. Decision Making −
Brainstorming sessions usually involve six to eight participants and run from Techniques and
thirty minutes to an hour. A one-hour session is likely to produce anywhere Processes
from 50 to 150 ideas. Typically, most ideas will be impractical, but, a few will
merit serious consideration. Brainstorming has given encouraging results in the
field of advertising, in all branches of the Armed Forces, and in various
Central, State, and local agencies.

Brainstorming, however, is not without limitations. It is usually most effective

when a problem is simple and specific. In addition, brainstorming sessions are
time-consuming and, therefore, can be costly. Finally, brainstorming often
produces superficial solutions. This latter limitation, of course, can be
overcome by selecting group members who are familiar with at least one aspect
of the problem being considered.

Synectics: Developed by William J.J. Gordon, synectics is a more recent and

formalised creativity technique for the generation of alternative solutions. The
term synectics is derived from a Greek word meaning “the fitting together of
diverse elements.” The basic intent of synectics is to stimulate novel and even
bizarre alternatives through the joining together of distinct and apparently
irrelevant ideas.

Members of a synectics group are typically selected to represent a variety of

backgrounds and training. An experienced group leader plays a vital role in this
approach. The leader states a problem for the group to consider. The group
reacts by stating the problem as they understand it. Only after the nature of the
problem is thoroughly reviewed and analysed does the group proceed to offer
potential solutions. It is the task of the leader to structure the problem and lead
the ensuing discussion in such a manner as to force group members to deviate
from their traditional ways of thinking. Various methods are employed to
"invoke the preconscious mind". These may include role-playing, the use of
analogies, paradoxes, metaphors, and other thought-provoking exercises. The
intended purpose is to induce fantasies and novel ideas that will modify
existing thought patterns in order to stimulate creative alternatives. It is from
this complex set of interactions that a final solution hopefully emerges. A
technical expert is ordinarily present to assist the group in evaluating the
feasibility of their ideas. Thus, in contrast to brainstorming where the
judgement of ideas is-withheld until, all ideas have been generated, judicial
evaluations of members' suggestions do take place from time to time.

In general, available evidence suggests that synectics has been less widely used
than brainstorming. While it suffers from some limitations as brainstorming (it
can be time-consuming and costly), its sophisticated manner makes it much
more appropriate for complex and technical problems.

Nominal Grouping: Developed by Andre Dellbecq and Andrew-Van de Ven,

nominal grouping differs from both brainstorming and synectics in two
important ways. Nominal grouping does not rely on free association of ideas, 113
Introduction to and it purposely attempts to reduce verbal interaction. From this latter
Management characteristic a nominal group derives its name; it is a group “in name only”.

Nominal grouping has been found to be particularly effective in situations

requiring a high degree off innovation and idea generation. It generally follows
a highly structured procedure involving the following stages:

Stage 1: Seven to ten individuals with different backgrounds and training are
brought together and familiarised with a selected problem such as, “What
alternatives are available for achieving a set of objectives?”

Stage 2: Each group member is asked to prepare a list of ideas in response to

the identified problem, working silently and alone.

Stage 3: After a period of ten to fifteen minutes, group members share their
ideas, one at a time, in a round-robin manner. A group facilitator records the
ideas on a blackboard or flip chart for all to see. The round-robin process
continues until all ideas are presented and recorded.

Stage 4: A period of structured interaction follows in which group members

openly discuss and evaluate each recorded idea. At this point ideas may be
recorded, combined, deleted, or added.

Stage 5: Each group member votes by privately ranking the presented ideas in
order of their perceived importance. Following a brief discussion of the vote, a
final secret ballot is conducted. The group's preference is the arithmetical
outcome of the individual votes. This concludes the meeting.

Nominal grouping has been used successfully in a wide variety of

organisations. Its principal benefit is that it minimises the inhibiting effects of
group interaction in the initial generation of alternative solutions. In this sense,
the search process is pro-active rather than reactive. That is, group members
must generate their own original ideas rather than "hitch-hike" on the ideas of
others. Additionally, the use of a round-robin recording procedure allows risk-
inclined group members to state risky solutions early, making it easier for less
secure participants to engage in similar disclosure. Nominal grouping,
however, also has limitations. Like brainstorming and synectics, it can be time-
consuming and, therefore, costly.

Creative Thinking: There are many ways of searching for information and
alternatives in problem solving. Effective managers use all of their capacities-
analytic and creative, conscious and subconscious-and seek both individual and
group involvement in this stage of decision making process.

As you have seen, the basic requirement at the stage of identification of

alternatives is to become more creative. Creativity involves novel combination
of ideas which must have theoretical or social value or make an emotional
impact on other people. Like the decision making process itself, the creative
process also has three stages as shown in the following exhibit:
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 STAGES IN THE CREATIVE PROCESS Decision Making −
Techniques and
Processes
Stage Type Behaviours

Preparation Conscious Saturation: Investing the problem in all

directions to become fully familiar with it, its
setting, causes, and effects
Deliberation: Mulling over these ideas,
analysing and challenging them, viewing
them from different optics.

Latent Period Unconscious Incubation: Relaxing, switching off, and

turning the problem over to the unconscious
mind.
Illumination: Emerging with possible
answers-dramatic, perhaps off beat, but fresh
and new.

Presentation Conscious Verification: Clarifying and flushing out the

idea, testing it against the criterion of
appropriateness.
Accommodation: Trying the solution out on
other people and other problems.

Evaluation of Alternatives

Evaluation of various identified possible courses of action constitutes the

second step of decision-making. Having identified a `reasonable' number of
alternatives as a manager you should now be in a position to judge the different
courses of action which have been isolated. Each alternative must be evaluated
in terms of its strengths and weaknesses, benefits and costs, advantages and
disadvantages in achieving organisational goals. Since there are usually both
positive and negative aspects of every alternative, most evaluations involve a
balancing or trade-off of anticipated consequences. Needless to say, such
assessments should be as objective as possible.

Evaluation of the relative merits of various alternatives may be performed by a

single manager or by a group. An evaluation may be completely intuitive or it
may be scientific, using analytical tools and procedures associated with what is
known as operations research (OR). More than likely, it will employ a
combination of both approaches. Whatever the basis of evaluation, the more
systematic the assessment, the more likely it is that the resulting judgements
will be accurate and complete.

You will know more about different OR techniques like pay-off matrix,
decision trees, queuing theory, linear programming, simulation, etc. in a
separate Unit which will help you in your task of evaluation of alternatives.
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Introduction to Selection of an Alternative
Management
Once appropriate alternatives have been identified and evaluated, you must
select the one alternative with the greatest perceived probability of meeting
organisational objectives. Of course, it is entirely possible that the decision
maker may be made to go back and identify other alternatives if none are
judged to be acceptable.

Theoretically, if the identification and evaluation of alternatives has been

properly. handled, making a choice should be an easy matter, The most
desirable alternative will be obvious. In practice, however, selection of a course
of action is often the result of a compromise. Enterprise objectives are multiple.
As a consequence, choice of an alternative must be made in light of multiple
and often conflicting objectives. Indeed, the quality of a decision may often
have to be balanced against its acceptability. Resource constraints and political
considerations are examples of confounding factors which must be carefully
weighed. At this point, sound judgement and experience play important roles.

Implementation of Decision

Once a plan (course of action) has been selected, appropriate actions must be
taken to assure that it is implemented. Implementation is crucial to success of
an enterprise. Indeed, it is considered by some to be the key to effective
planning. The best plans in the world are absolutely worthless if they cannot be
implemented. The activities necessary to put plans into operation must be
skillfully initiated. In this respect, no plan is better than the actions taken to
make it a reality.

With selection of a course of action, you must make detailed provisions for its
execution. You must communicate the chosen course of action, gather support
for it, and assign resources to see that it is carried out. Development of a sound
means of implementation is every bit as important as the decision as to which
course of action to pursue. All too often, even the best plans fail as a result of
being improperly implemented.

SAQ 1

Point out the techniques used in different steps of decision making.

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7.3 INDIVIDUAL VERSUS GROUP DECISION MAKING Decision Making −
Techniques and
Processes
You are perhaps aware that in recent times most of the decisions in any large
organisation are usually taken by a group of people (e.g., Board of Directors,
Committees, Task-force, etc.) rather than by a single individual manager,
however, brilliant, bright or powerful the manager may be. Perhaps from your
own experience, you are also aware of some of the obvious advantages and
disadvantages of group decision making like the one given below:

Advantages and disadvantages of group decision making

Advantages Disadvantages

• Groups can accumulate more • Groups often work more slowly

knowledge and facts. than individuals.

• Groups have a broader perspective • Group decision involves

and consider more alternative considerable compromise which
solutions. may lead to less than optimal
decisions.

• Individuals who participate in • Groups are often dominated by

decisions are more satisfied with one individual or a small clique,
the decision and are more likely to thereby negating many of the
support it. virtues of group procedures.

• Group decision processes serve an • Over-reliance on group decision

important communication function making can inhibit management's
as well as a useful political ability to act quickly and
function. decisively when necessary.

Source: Maier, 1967.

7.4 OVERCOMING BARRIERS TO EFFECTIVE

DECISION MAKING

You have just examined different outcomes of a faulty group decision process
under the phenomenon called groupthink. In fact, these "faults" are not
exclusive to group decisions only. You will appreciate that in the early stages
of any decision process, there is' the likelihood that a variety of perceptual
biases may interfere with problem analysis or the identification of possible
solutions. Elbing (1978) has identified several roadblocks that can impede
managerial effectiveness in arriving at the most suitable decision:

• The tendency to evaluate before one investigates. Early evaluation

precludes inquiry into a fuller understanding of the situation. 117
Introduction to • The tendency to equate new and old experiences. This often causes
Management managers to look for what is similar rather than what is unique in a new
problem.

• The tendency to use available solutions, rather than consider new or

innovative ones.

• The tendency to deal with problems at face value, rather than ask questions
that might illuminate reasons behind the more obvious aspects of the
problem.

• The tendency to direct decisions toward a single goal. Most problems

involve multiple goals that must be handled simultaneously.

• The tendency to confuse symptoms and problems.

• The tendency to overlook unsolvable problems and instead concentrate on

simpler concerns.

• The tendency to respond automatically or to act before thinking.

Problems like these often cause managers to act in haste before the facts are
known and often before the actual underlying problem is recognised or
understood. Knowledge of these roadblocks will assist you in your attempts to
analyse problem situations and make reasoned decisions.

In case you are a member or leader of any decision making group, you would
like to overcome the emergence of a groupthink mentality in groups and
organisations. Taking your cue from Janis you can now formulate several
strategies to overcome the barriers:

• Group leaders can encourage each member to be a critical evaluator of

various proposals.

• When groups are given a problem to solve, leaders can refrain from stating
their own position and instead encourage open enquiry and impartial
probing of a wide range of alternatives.

• The organisation can give the same problem to two different independent
groups and compare the resulting solutions.

• Before the group reaches a final decision, members can be required to take
a respite at intervals and seek advice from other wings of the organisation
before returning to make a decision.

• Outside experts can be invited to group meetings and encouraged to

challenge the views of group members.

• At every group meeting, one member could be appointed as a devil's

advocate to challenge the testimony of those advocating the majority
position.
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• When considering the feasibility and effectiveness of various alternatives, Decision Making −
divide the group into two sections for independent discussions and compare Techniques and
results. Processes

• After deciding on a preliminary consensus on the first choice for a course

of action, schedule a second meeting during which members of the group
express their residual doubts and rethink the entire issue prior to finalising
the decision and initiating action.

In other words, if groups are aware of the problems of groupthink, several

specific and relatively simple steps can be taken to minimise the likelihood of
falling victim to this problem. As you already know, recognising the problem
represents half the battle in the effort to make more effective decisions in
organisational settings.

SAQ 2

Point out the two strategies to overcome the barrier to effective decision making.
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7.5 SUMMARY

Many analytical techniques under Management Science are available to help

you take decisions. But when your problems are of the non-programmed
variety, it is not sufficient to be alert and analytical. You have to use your
creative thinking in identifying viable alternatives, judgement and discretion in
evaluating and making a choice. We have also brought the issue of group
decision to your attention as you often make decisions as a member of a group.
You have observed certain inherent advantages of group decision situations. At
the same time, we have drawn your attention to some phenomena like risky-
shift or groupthink which might emerge in the group process and affect the
quality of your decisions. Since you have also reckoned the usual barriers to
effective decision making and have noted some strategies to overcome them,
we are sure this Unit will sharpen your skills of decision making as a manager.
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Introduction to
Management
7.6 KEY WORDS

Brainstorming : A group process, where the members are

presented with a problem and are asked to
develop as many solutions as possible in a
free environment.

Operations research : Use of scientific methods of analysis to

process complex information and arrive at
decisions achieving an optimum balance of
probabilities as well as identifiable facts.

Synectics : A method of generating alternatives by

combining diverse and apparently
irrelevant ideas.

7.7 TERMINAL QUESTIONS

1. What steps should be taken by the organisation to overcome the barriers to
effective decision making?
2. Point out the advantages and disadvantages of group decision making.
3. What do you mean by term “Brainstorming”?

7.8 ANSWERS

Self Assessment Questions

1. Identification of alternatives, evaluation of alternatives, selection of an

alternative and implementation of decision, are the main techniques used in
decision making.

2. Two strategies to overcome the barrier are:-

a) Group leader can encourage each member to be critical evaluator of

various proposals, and
b) Outside experts can be invited to group meetings and encouraged to
challenge the view of group members.

Terminal Questions

1. Organisation should take following steps to overcome the barriers to

effective decision making:

a) Group leaders can encourage each member to be a critical evaluator of

various proposals.

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 b) The organisation can give the same problem of two different Decision Making −
independent groups and compare the resulting solutions. Techniques and
Processes
c) Before the group reaches a final decision, members can be required to
take a respite at intervals and seek advice from other wings of the
organisation before returning to make a decision.
d) Outside experts can be invited to group meetings and encouraged to
challenge the view of group members.
e) When considering the feasibility and effectiveness of various
alternatives, divide the group into two sections for independent
discussions and compare results; and
f) After decision on a preliminary consensus on the first choice for a
course of action, schedule a second meeting during which members of
the group express their residual doubts and rethink the entire issue prior
to finalising the decision and initiating action.

2. Advantages of group decision making:

a) Groups can accumulate more knowledge and facts.

b) Groups have a broader perspective and consider more alternative

solutions.

c) Individuals who participate in decisions are more satisfied with the

decision and are more likely to support it.

d) Group decision processes serve an important communication function

as well as a useful function.

In spite of these advantages, there are following disadvantages of group

decision making:-

a) Group often work more slowly than individuals.

b) Group decision involves considerable compromise which may lead to

less than optimal decisions.

c) Groups are often dominated by one individual or a small clique, thereby

negating many of the virtues of group procedures.

d) Over-reliance on group decision making can inhibit management’s

ability to act quickly and decisively when necessary.

3. Brainstorming

It is developed by Alex F. Osborn, brainstorming is the oldest and best

known technique for stimulating creative thinking. It involves the use of a
group whose member are presented with a problem and are asked to
develop as many potential solution as possible. Members of the group may
be employees of the firm or outside experts in a particular field.
Brainstorming is based on the premise that when people interact in a free 121
Introduction to and uninhibited atmosphere they will generate creative ideas, that is, as one
Management person generates an idea it serves to stimulate the thinking of others. The
interchange of ideas is supposedly contagious and creates an atmosphere of
free discussion and spontaneous thinking. The objective of brainstorming is
to produce many ideas as possible in keeping with the belief that the larger
the number of ideas produced, the greater the probability of identifying an
acceptable solution.

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