Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 166 views

    Decision Making: - An Essence To Problem Solving

    Uploaded by

    Amanjot Sachdeva
    The document discusses decision making processes. It defines decision making as selecting courses of action to solve problems and create value. There are typically four steps: identifying problems, generating alternatives, evaluating options, and implementing/monitoring solutions. Both programmed and non-programmed decisions are discussed, along with factors like uncertainty and risk. Group decision making has advantages like more information but also disadvantages like delays. Common decision-making errors and techniques for improving decisions are also outlined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Decision Making: - An Essence To Problem Solving

    Uploaded by

    Amanjot Sachdeva
    166 views19 pages
    The document discusses decision making processes. It defines decision making as selecting courses of action to solve problems and create value. There are typically four steps: identifying problems, generating alternatives, evaluating options, and implementing/monitoring solutions. Both programmed and non-programmed decisions are discussed, along with factors like uncertainty and risk. Group decision making has advantages like more information but also disadvantages like delays. Common decision-making errors and techniques for improving decisions are also outlined.

    Original Title

    DECISION MAKING

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses decision making processes. It defines decision making as selecting courses of action to solve problems and create value. There are typically four steps: identifying problems, generating alternatives, evaluating options, and implementing/monitoring solutions. Both programmed and non-programmed decisions are discussed, along with factors like uncertainty and risk. Group decision making has advantages like more information but also disadvantages like delays. Common decision-making errors and techniques for improving decisions are also outlined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    166 views19 pages

    Decision Making: - An Essence To Problem Solving

    Uploaded by

    Amanjot Sachdeva
    The document discusses decision making processes. It defines decision making as selecting courses of action to solve problems and create value. There are typically four steps: identifying problems, generating alternatives, evaluating options, and implementing/monitoring solutions. Both programmed and non-programmed decisions are discussed, along with factors like uncertainty and risk. Group decision making has advantages like more information but also disadvantages like delays. Common decision-making errors and techniques for improving decisions are also outlined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 19

    DECISION MAKING

    - An essence to problem solving


    WHAT IS DECISION MAKING?
    “ the process of responding to a problem by searching
    for and selecting a solution or course of action that
    will create value for organisational stakeholders”.
    MANAGERIAL DECISION MAKING
    FOUR STEPS IN THE DECISION MAKING PROCESS

    DECISION MAKING

    STEP 3
    STEP 4
    STEP 1 STEP 2
    EVALUATE
    IMPLEMENT
    IDENTIFY GENERATE & CHOOSE
    & MONITOR
    THE ALTERNATIVE AMONG
    THE CHOSEN
    PROBLEM SOLUTIONS ALTERNATIVE
    SOLUTION
    SOLUTIONS

    PROBLEM SOLVING
    STEPS IN AN EFFECTIVE DECISION MAKING PROCESS

    SCAN THE ENVIRONMENT FOR CHANGING CIRCUMSTANCES


    IDENTIFY THE PROBLEM CATEGORIZE THE SITUATION AS A PROBLEM (OR NONPROBLEM)
    DIAGNOSE THE PROBLEM'S NATURE & CAUSES
    RESTRICT CRITICISM OF ALTERNATIVES

    GENERATE ALTERNATIVE FREEWHEEL TO STIMULATE THINKING


    SOLUTIONS OFFER AS MANY IDEAS AS POSSIBLE
    COMBINE & IMPROVE ON IDEAS
    EVALUATE FEASIBILITY
    EVALUATE QUALITY

    EVALUATE & CHOOSE AN EVALUATE ACCEPTABILITY


    ALTERNATIVE EVALUATE COSTS
    EVALUATE REVERSIBILITY
    EVALUATE ETHICS
    PLAN THE IMPLEMENTATION OF THE SOLUTION
    IMPLEMENT & MONITOR
    BE SENSITIVE TO THE DECISION'S EFFECTS ON OTHERS
    THE CHOSEN SOLUTION
    DEVELOP FOLLOW UP MECHANISMS
    Types of Programmed Decisions
     Policy
    • A general guideline for making a decision about a
    structured problem.
     Procedure
    • A series of interrelated steps that a manager can use to
    respond ( applying a policy) to a structured problem.
     Rule
    • An explicit statement that limits what a manager or
    employee can or cannot do.
    DIFFERENCES IN DECISION MAKING
    SITUATIONS
    NONPROGRAMMED DECISIONS : Decisions for which
    Predetermined Decision Rules are impractical because the situations
    are novel and / or relatively unstructured

    UNCERTAINTY A condition in which the decision maker must


    choose a course of action without complete knowledge of the
    consequences that will follow implementation
    RISK The possibility that a chosen action could lead to losses rather
    than the intended results

    e.g. : Faced with rapid change & declining US $, Annette Roux, Head
    Chantiers Beneteau in France opened plant in Carolina to
    manufacture Sailboats
    Programmed vs. Non-programmed
    Decisions :
    Characteristics Programmed Non-programmed
    decisions decisions
    Type of problem Structured Unstructured
    Managerial level Lower level Upper level
    Frequency Repetitive New,unusual
    Information Readily available Ambiguous or
    incomplete
    Time frame for Short Relatively long
    solution
    Solution relies on Procedures, rules, Judgment and
    and policies creativity
    EXAMPLES OF MANAGERIAL DECISION MAKING
    SITUATIONS

    TYPE OF PROGRAMMED NON PROGRAMMED


    ORGANISATION DECISION DECISION
    Determine
    Fast food Identify location for
    supplies to be
    restaurant new franchise
    ordered
    Decide if students
    Choose new
    University meet graduation
    academic programs
    requirements
    Determine union
    Automaker employee pay Select new car design
    rates
    Decision-making styles
     Dimensions of decision-making styles
    • Ways of thinking
    • Rational, orderly, and consistent.
    • Intuitive, creative, and unique.

     Tolerance of ambiguity
    • Low tolerance: require consistency and order.
    • High tolerance: multiple thoughts simultaneously.
    Decision-Making Styles (cont’d)
     Types of Decision Makers

    • Directive
    Use minimal information and consider few alternatives.
    • Analytic
    Make careful decisions in unique situations.
    • Conceptual
    Maintain a broad outlook and consider many
    alternatives in making decisions.
    • Behavioral
    Avoid conflict by working well with others and being
    receptive to suggestions.
    Individual Models of Decision-Making
    Cognitive style
    Underlying personality dispositions toward the treatment of
    information, selection of alternatives, and evaluation of
    consequences.
    Systematic decision makers
    People who approach a problem by structuring it in terms of
    some formal method.
    Intuitive decision makers
    People who approach a problem with multiple methods in an
    unstructured manner, using trail and error to find a solution.
    Organizational models of decision making
    Models of decision making that take into account the
    structural and political characteristics of an organization.
    Organizational Models of Decision-Making

    Bureaucratic models of decision making


    where decisions are shaped by the organization’s standard
    operating procedures(SOPs).

    Political models of decision making


    where decisions result from competition and bargaining
    among the organization’s interest groups and key leaders.

    “Garbage can” model


    where states that organizations are not rational and that
    decisions are solutions that become attached to problems
    for accidental reasons.
    GROUP DECISION MAKING
    ADVANTAGES & DISADVANTAGES OF GROUP DECISION MAKING

      ADVANTAGES   DISADVANTAGES

    MORE INFORMATION AND


    IT IS USUALLY MORE TIME
    1 KNOWLEDGE 1
    CONSUMING
    IS FOCUSED ON THE ISSUE

    DISAGREEMENTS MAY DELAY


    AN INCREASED NUMBER AND
    2 2 DECISIONS AND CAUSE HARD
    DIVERSITY OF ALTERNATIVES
    FEELINGS

    GREATER UNDERSTANDING THE DISCUSSION MAY BE


    3 AND ACCEPTANCE OF THE 3 DOMINATED BY ONE OR A FEW
    FINAL DECISION ARE LIKELY GROUP MEMBERS

    MEMBERS DEVELOP GROUPTHINK MAY CAUSE


    4 KNOWLEDGE AND SKILLS FOR 4 MEMBERS TO OVEREMPHASIZE
    FUTURE USE ACHIEVING AGREEMENT
    Common decision-Making
    errors and Biases
    Overconfidence
    Immediate
    Hindsight Gratification

    Self-serving Anchoring
    Decision-Making Effect
    Errors & Biases
    Sunk costs
    Selective
    Perception
    Randomness
    Confirmation
    representation
    framing
    Availability
    OVERCOMING BARRIERS TO EFFECTIVE
    DECISION MAKING
    ACCEPTING THE PROBLEM CHALLENGE
    1.COMPLACENCY : A condition in which individuals either do not
    see the signs of danger or opportunity or ignore them
    e.g. : It occurs when an individual immediately accepts a job offer
    that looks good, without assessing the situation thoroughly
    2.DEFENSIVE AVOIDANCE : A condition in which individuals either
    deny the importance of a danger or an opportunity or deny any
    responsibility for taking action
    e.g. : All three forms came into play when officials at Barings Bank in
    London ignored warning signs that
    –Singapore based 28 year old Nicholas Leeson was taking unwarranted
    risks
    –Led to loss > $1 billion & collapse of the Bank
    3. PANIC: A reaction in which individuals become so upset that
    they frantically seek a way to solve a problem.

    4. DECIDING TO DECIDE: A response in which decision makers


    accept the challenge of deciding what to do about a problem and
    follow an effective decision making process
    GUIDELINES FOR DECIDING TO DECIDE
    APPRAISE CREDIBILITY OF INFORMATION
    Is the source in a position to know the truth ?
    Is there any evidence, and how good is it ?
    ASCERTAIN IMPORTANCE OF THREAT OR OPPORTUNITY
    How likely is a real danger or opportunity ?
    If a threat, how severe might the losses be ?
    DETERMINE THE NEED FOR URGENCY
    Is the threat or opportunity likely to occur soon ?
    If some action is urgent, can part be done now & rest later ?
    Guideline for making decision more
    effective
     Categorical interpretation- the problem should be defined
    properly.
     Application of limiting factor- limiting factor should be
    taken into account in order to analyze the external S & W.
     Adequate information- more quantity of reliable
    information leads to effective decision making.
     Considering other views- various views at the same point
    are taken into account for quality decision.
     Timeliness- decision should be ,made at proper time to
    meet the competitive advantages.
    Techniques for improving decision making
     Brainstorming – idea generation for decision making.
     Nominal group technique (NGT)- problem outlined,
    presentation of solution in written form, discussion over
    written solutions, and final decision.
     Delphi technique- decision made on the basis of
    questionnaire filled by the respondents.
     Consensus mapping- decision made on the basis of the
    report presented by the representative of each group after
    Divya Suryavanshi
    Roll no : 8396

    You might also like