Decision Making

Decision Making is an intellectual process that involves choice/

choosing from available options.
Simon said that administration is nothing but decision making.
Decision making is important because it helps us in planning, in
optimizing [resources] thereby it helps us in maximizing .Decision
making is key to organizational success.
 Models of Decision Making:
: Models of Decision making deals with organizational decision making,
the decision making can be understood from the perspective of
individual decision making , group decision making .Models will help
understand how the decision is taken or should be taken [one or both
depends on model ] broadly the model in discussion are :
i) Rational Model of Decision Making: It is the root model of
decision making .Under this model the problem is considered
from a logical point of view that means it involves critical
scrutiny, collection of information.
It involves logical correlation of the means with the goal or the
choice of course of action that would be most appropriate as
per the problem .It takes the fresh overview with regard to
solution .In the existing solution is not a guiding
principles .Problem is considered as fresh .The decision under
this model is only taken on the basis of appropriateness that
what is most logically appropriate is chosen.
Simon said H, s absolute rationality.

ii) Normative Model of Decision Making: It assumes certain

limitations in the decision making Envt this could be individual
it could be environmental or both.
 The decision is taken while being within these constraints
 This Model Depicts :
i) Limited processing of information which means, there
is a d threshold or a boundary which manages the
extent to which the information can be managed and
processed by the person.
ii) Judgmental strategies like many shortcuts are used
while making decisions.
 iii) Selection of these solutions or alternative that would
require minimum inputs and resources but are good
enough.
iv) The choices of options are based on the imagining
ability.
 Simon’s theory certain Normative content
 A variant of normative Model i.e. the Administrative
Model

iii) Administrative Model of Decision Making

 It emphasizes on constraints are limitations [multiple .It also
emphasizes taking decisions that involves minimum input
but contribution by many. Finally choosing a course of action
i.e. satisfying.
 The administrative model further emphasizes that the
general tendency within the orgn i.e. towards Routinization
i.e. decision is taken in a routine was / usual way .If its new
problem than the decision is taken by minimize single input
and choosing an option that will address the problem in
above average manner and once only solution that becomes
successful there is tendency within the administration to
develop standard operating procedure [SOP].
 Rational Model Predominantly - is an idealistic and as well a
prescriptive model, as it says the decision is to be taken is
the best decision, it emphasizes on the perfect
decision .Perspective in the way that it’s not saying that
decision are taken in this way rather it emphasizing that
what is a good decision within org how is the decision is
taken and should be directed towards achieving goal.
  Normative And Administrative Model - They have both
descriptive as well as prescriptive model they are also
advocating why a particular decision making is right .It has
also refereed that decision making process should take into
a/c these constraints Envt, limiting factor .It more realistic in
nature but at same time these models are not refuting the
rationality in decision making .The choices made should be
good enough .They have redefined the concept of
rationality.

Political Model of Decision Making

Decisions are not taken in isolation rather it involves various many
stakeholders.
Decisions are not taken through very rigid process or the process
based on rationality rather a decision involves negotiation,
bargaining, dialogue, consensus building etc. Decisions are taken
that are mostly acceptable.
Decision making in an Orgn rarely involves a single issue, it
involves multiple issues.
The decision which is actually taken involves correlation with
multiple times.
Ethical Model of Decision Making
It emphasizes that decision making adhere to effectiveness,
economy, efficiency, professionalism; it should also include
democratic values.
It’s a prescriptive model
It should be goal directly, rational , maximizing output ,
minimizing input , minimal wastage
 Ethical Decision making emphasizes on reality but on the base of
reality you should not be sued away
Civil servant in decision making should resist from being - fanatically
ethical.
Techniques of Decision Making - Group Decision Making & Individual
Decision Making
- More Rational decision making will be more effective and less
rational decision making will be less effective.
- There are techniques though which rationality in decision making
could be increased .So; thereby effectiveness of decision making
can be increased.
- Certain techniques would be brainstorming, nominal group
decision making consensus building, and decision tree.

Brainstorming: It can be done individually but mostly it is used as a

group activity of decision making .It’s a style of decision making in
which decisions makers have to set face to face [Conference]. In this
first af all group leader has to highlight the once highlighted than the
issue will be open for suggestions from members group.
Group Decision making have certain advantage over individual decision
making
i) Multiple skills and capabilities can be accessed issue those are
complex dynamic, can be handled group decision making
strategy requires specialization .
Individualization decision making is better when decision has to
be taken faster and requires any skill.

Limitation of Group Decision Making

 - Costly
- Reaching to a dose can be differential
- Time consuming
Program of Group Think, Power of group over the individual this may
affect individual is participation.
While the solutions are being generated, each and every member is
expected to maintain a sense of neutrality , once all the suggestions ,
ideals are shared , subsequent to that each idea is discussed , after this
the one which will be considered to be best by all will be chosen.

Nominal Group Technique Model of Decision Making

 Conference Style of Decision Making
 Group Leader is to clarify issue to the group / once informed
each member is expected to generate their own solution
[One each]
 Only 1 suggestion is to be given & absolute secrecy is to be
maintained about individual ideas .One by one these
suggestions are than taken up for discussion , at no stage
identity of suggestion given is to be disclosed .Once the
discussion , is over than each member would be asked to
rank the suggestions and the final ranking is to be prepared
based on the rank given by members & than the idea gets
the
1st Rank would be considered as decision of Grp.
Limitation
i) May Effect motivation as no one will be credited for his idea.
ii) Might bring a casual attitude as no one will be discredited for
bad idea.
Adversial Group Decision Making Technique
- Competition Groups are to be formed /created.
- These groups should be allowed to confront each other.
- Based on this relevant info, an idea come & up and becomes
manageable and more appropriate for decision maker to take the
decision.
Delphi Technique of Decision Making
- A core team decision making team is formed within the
organization, comprising the exports those who know the issue &
those who will be finally taking decisions
- The Core group on its preliminary study of the issue would require
identifying the expertise required, who are those experts.
- They have to identify and choose the experts based on the
requirements & resources of orgn.
- Once the expert is identified, the core group will develop
questionnaire, but not to send to all experts at a time, rather to
bring with one or four experts are to be accessed.
- Once the response is received the questionnaire is to be redefined
on the basis of the response
- Same process will go -on till core group is satisfied.
- Through this model expertise can be accessed which is not
necessarily limited to the organization .It is a type of approach
 whereby the experts interact to each other without being face to
face.
- This helps the Orgn to deal with immensely complicated issues
which are futuristic in nature.
Limitations
- Requires Ample Amt of Time.
- If this is immensely challenging may needs specialization than is
not necessarily available within the Orgn [Expertise complicated ,
complex issue which is orgn [Expertise] complicated , complex
issue which is about to merge in the future we are anticipating the
issue

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More Techniques of Decision Making
The Follett’s Work -> Was not directed towards the resolution of
conflict of ideas, but towards the resolution of structural conflict b/w
workers & capitalist .In light of this statement critically evaluate
Follett’s Idea of dynamic administration.
Consensus Mapping
When there are large no of people in decision making and
nominal group technique, brainstorming .Decision makers are not
only at the can’t be employed to but rather all over the org.
 In organization core group of decision makers is created and
entire orgn is divided into small clusters .Once clusters are formed
, core group clarifies the issue with each group and ask for their
suggestions [Solutions ] once this cluster submit their views the
core group develops the straw man map of the decision
[Changeable ,Tentative ].
Strawman Map is sent to each cluster for their opinion of the
same .After receiving opinion of all clusters the [Strawman map is
modified and again sent to all clusters .This process will go on till
core group satisfied that consensus has been reached

 Game Theory - If the issue that is involved in a competitive Envt

with multiple authorities and decision makers partially in control
of consumers decision making.
And consequences are in hand of others in position of decision
making up [Game Theory] helps in this kind of scenario.
Game Theory - famous Example C- Confess N-Non Confess
Prisoner’s Dilemma
A B
C C - Moderate Punishment
C- Lighter Punishment NC- Heavy Punishment
NC - Heavy Punishment C- Lighter Punishment
NC NC - Set Free

In competitive Game Theory Envt, we should have

 1) Knowledge of Decisions by decisions makers’ .they should
acquire more knowledge about decisions of other decision
makers.
2) Should also know multiple consequences of game .But at same
time should evaluate risk and opportunists’ .So based this
evaluation the decision makers should take decisision that
minimize risk and maximizes the opportunity.

Operation Research [OR]

- With help of mathematical, scientific, single formula’s made by
quantifying reality. In this computers are used to quantify large
amt of data in particular relationship .Simulation of data is done
through operations research.
- It is used in such decision making problem that only not is
complex but involves huge data & info and is immensely dynamic
and problem is critical to organization.
- In such type of scenario or is employed.
- Operation Research uses science , tech, method , mathematic ,
methods and formulate in order .He provide solutions for certain
complex , incrackable , critical problems for developing optimal
solutions in complex and critical problems for organization .
- Operation Research: Helps address non- program decisions that
require creative, innovative decision making approach.

This approach success depends on certain factors:

i) Specialization : OR experts will be required
ii) A high level of coordination b/w mangers and OR experts.
 iii) The success of OR experts depends on how much they capture
the actual problems .the State which is accurately captured is
the key to success of OR.
iv) OR is Quantitative Method only when every aspect of reality is
quantifiable, it will be successful .It is difficult to quantify every
attribute especially qualitative characters.
Noise b/w manager perception of reality of OR perception of
reality should be minimum.
Linear Programming Model
- This technique of decision making is mostly used to optimize the
allocation of resources in an operational system to optimize its
use .Since in Org resources are scare, the productivity focuses on
optimizing use of resources.
- This process of optimizing the use of resources in orgn is known as
Linear Programming.
- To maintain High Productivity .In this resources are optimally
allocated.
- In this linear programming there is to bring a relation b/w
resources and optimize use.

ABC Technique: When problems are more and time available is

less.
Under ABC technique it is required to classify the problem areas
into 3 major categories based on importance and significance
- Most significant -A
- Next Significant - B
- Least Significant - C
Proportion can be decided as per reqmt.
 Here we start with A and address to his problems , then go to B if
time is still left then we go for B .In this way if time is exhausted
only the least significant problems remain unattended .
All these techniques are used to enhance rationality in decision
making & enhance effectiveness of decision making.
MORALE
Morale refers to state of mind of highness or lowness, or it’s a
psychology state of mind of enthusiasm and confidence .Moreover it’s
a feeling .it is a positive feeling about one’s ability .the feeling of
happiness, it’s a feeling of happiness.
Moral is significant for No of Reasons:
i) It helps the individuals in the group have positive assessment
of their ability.
ii) It helps individual to achieve and expand their potential.
iii) It helps to build team feeling, thereby by making coordination
& co-operation easy.
iv) It reduces conflict .It increases discipline
v) It help the individual to take risk and remain creative.
vi) It enables individuals and groups to increase productivity.

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In certain cases Morale may be

There are no of studies which indicate that high morale cannot result
into high productivity .High Morale can be misleading.
- Underestimation of Opponent /Completion
 - Overconfidence
- Misinterpretation of Problem.
- It also leads to overestimate our own capability.

High Morale cannot be correlated with high productivity.

But at same time, low moral can be correlated with low
productivity.
In low morale, it leads to more cautious behavior, greater self
awareness, higher effort, proper scrutiny, this ultimately raises
the productivity.
Features Responsible for Influencing Morale:
i) Personnel Administration
ii) Inter-Personal Relationship
iii) Organization & its Envt

a) In an Orgn +ive use of multiple techniques to have sound human

resources .Certain tools and techniques organization employ to
maintain health of human resources, it is known as personnel
training.
 Training
 Recruitment
 Performance Appraisal These are Personnel
 Remuneration Administration Tools.
 Transfer Posting
 Grievance Redressal
- People working without training will be efficient while trained
people know their jobs and its details, confidence will be high.
- Training should be all technical , social, emotional focused
- If personnel administration of a organization is sound it increases
motivation / more if unsound it decreases the morale.

b) Inter -personal Relationship: The human relation within the

individuals of the organizations is it superior and subordinate.
More -Inter personal relationship more over mutual confidence
feeling high morale vice -versa.
I f there in group, there is jealousy, lack of confidence , mutual
differences there will low morale.

c) Environment: Change in environment in doing job .If a group is

operating in difficult Envt morale might be down. If a organization
is working in corrupt morale will be low.
If Envt is conducive, clarity, honesty, morale will be high.
Examples: Perception of people towards police .If perception is
good than Envt is good which will lead to higher morale.

Suggestions for Increasing Morale:-

i) Personnel Administration
ii) Interpersonal Administration
iii) Work Envt