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Decision Making1

This document discusses various aspects of decision making including: 1) It defines decision making as the process of analyzing options and making choices about goals and courses of action to respond to opportunities and threats. 2) There are two main types of organizational decision making - programmed decisions which are routine and repetitive, and non-programmed decisions which are unique and non-recurring. 3) The decision making process involves defining the problem, gathering information, evaluating alternatives, selecting an alternative, implementing it, and following up on the results.

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Kapil Krishna
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Download as PPT, PDF, TXT or read online on Scribd
38 views

Decision Making1

This document discusses various aspects of decision making including: 1) It defines decision making as the process of analyzing options and making choices about goals and courses of action to respond to opportunities and threats. 2) There are two main types of organizational decision making - programmed decisions which are routine and repetitive, and non-programmed decisions which are unique and non-recurring. 3) The decision making process involves defining the problem, gathering information, evaluating alternatives, selecting an alternative, implementing it, and following up on the results.

Uploaded by

Kapil Krishna
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Decision making

Group -9
 Kapil krishna
 Karunakar
 Rohit
 Shashi Kiran
 Vaishak

vaishak 1
What is decision making?
“process by which we respond to opportunities
and threats by analyzing options ,and making
decision about goals and courses of action”
Or
“It’s the act of coming to a conclusive point in
order to solve a problem or to choose a best
route”
Or
“An essence to problem solving”

vaishak 2
Organisational 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.

Thereare basically two kinds of decision


makings called upon to make.

vaishak 3
Two kinds of decision making

Programmed and non-programmed


 Programmed decision making.

A repetitive decision that can be handled by


a routine approach.

Shashi kiran 4
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.

shashikiran 5
Non-programmed decisions
Decision that are unique and nonrecurring.

Decision that generate unique responses.

shashikiran 6
Programmed vs. Non-programmed Decision
Characteristics Programmed Non-programmed
decisions decision

Type of problem Structured Unstructured

Managerial level Lower level Upper level

Frequency Repetitive New, unusual

Information Readily available Ambiguous or


incomplete

Time frame Short Relatively long

Solution relies on Procedures,rules, and Judgment and creativity


policies
shashikiran 7
Types of Problems
Structured problems
• Involved goals that clear.
• Are familiar(have occurred before).
• Are easily and completely defined-
information about the problem is available
and complete.

shashikiran 8
Unstructured problems
Problems that are new or unusual and for
which information is ambiguous or
incomplete.

 Problems that will require custom-made


solutions.

shashikiran 9
Characteristics of an Effective
Decision-Making
 It focuses on what is important.
 It is logical and consistent.
 It acknowledges both subjective and objective
thinking and blends analytical with intuitive
thinking.
 It requires only as much information and analysis
as is necessary to resolve a particular dilemma.
 It encourages and guides the gathering of relevant
information and informed opinion.
 It is straightforward ,reliable, easy to use, and
flexible.
karunakar 10
The Decision- Making Process

Evaluate Implement the


Define the
Alternatives chosen
Problem
Alternative

Gather facts and Follow up and


Select the best
develop evaluate the chosen
alternative.
alternatives. alternative.

karunakar 11
Steps in decision making
• Step 1: Identifying the Problem
• Step 2: Identify the Decision Criteria
(Costs, Risks,Outcomes)
• Step 3: Allocating Weights to the Criteria
• (Assigning, correct priority of places)
• Step 4: Developing Alternatives
• Step 5 :Analyzing alternatives
• (strengths andweaknesses )

karunakar 12
Contd..
Step 6: selecting the alternative.
(highest total weight is chosen)
• Step 7: Implementing the Alternative.
Step 8: Evaluating the decision’s
effectiveness.

karunakar 13
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.
Rohit.d 14
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.

Rohit.d 15
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.

Rohit.d 16
Contd….
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.

Rohit.d 17
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.
Kapil krishna 18
Contd…
Consensus mapping- decision made on the basis
of the report presented by the representative of
each group after.

Kapil krishna 19
Thanku…..

20

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