What is Management Decision Making?

In simple terms, decision making is the process of making choices by recognizing the problem,
gathering information about feasible solutions, and finalizing the best alternative.

Types of Decision-Making in Management

1. Routine and Basic Decision-making

Routine decision-making, on the other hand, refers to the process of making decisions that are
made regularly and involve choosing between a few options that the decision-maker is familiar
with. Examples of routine decision-making include setting work schedules, ordering supplies,
and approving routine expenses. Managers make routine decisions in the daily functioning of the
organization, and they often delegate these decisions to their subordinates.

Basic decision-making refers to the process of making simple decisions that do not require much
evaluation or analysis. Examples of basic decision-making include setting work schedules,
ordering supplies, and approving routine expenses. Managers make basic decisions in the daily
functioning of the organization, and they often delegate these decisions to their subordinates.

2. Personal and Organizational Decision-making

Personal and organizational decision-making are two distinct types of decisions that managers
make. An organizational decision is made on behalf of the organization and is related to the
organization's operations, policies, or strategic plans. These decisions can be delegated to
subordinates and usually have a significant impact on the organization's success. Examples of
organizational decisions include setting production targets, choosing suppliers, or investing in
new technology.

In contrast, a personal decision is a decision made by a manager that is not related to the
organization in any way. These decisions are related to the manager's personal life within the
organization and cannot be delegated to subordinates. Examples of personal decisions include
what to eat for lunch, what mode of transportation to use for commuting, or what hobby to
pursue outside of work.
3. Individual and Group Decision-making

Individual decision-making is when one person makes a decision in an official capacity, often in
smaller organizations or with an autocratic management style. Examples include a CEO
investing in a new product or a manager firing an employee.

Group decision-making involves a collective of employees and managers making decisions

through a collaborative process. Multiple viewpoints and perspectives are considered. Examples
include a team of managers deciding on a marketing strategy or a board of directors deciding on
a merger or acquisition.

4. Programmed and Non-Programmed Decision-making

Programmed decision-making refers to decisions that are repetitive in nature and follow a
specific set of procedures. These decisions are typically made by lower-level managers and are
implemented on a daily basis. Examples of programmed decisions include setting work
schedules, granting employee leave, and ordering routine supplies. These decisions are not
typically long-term and can be changed at any time.

Non-programmed decision-making, on the other hand, relates to decisions that are not routine
and arise from unstructured problems. These decisions are usually made by upper-level
management and have a long-term impact on the organization. Examples of non-programmed
decisions include launching a new product line, entering a new market, or responding to a crisis
situation.

For example, a programmed decision could be approving routine expenses such as office
supplies or travel expenses, as the process for approval is already in place and does not require
much thought. In contrast, a non-programmed decision could be deciding to invest in a new
technology that requires significant analysis and research to determine if it is viable for the
company's long-term success.

5. Policy and Operating Decision-making

Policy decision-making is the process of making decisions that establish the overall direction,
goals, and objectives of an organization. These decisions are made by top-level executives and
have a long-term impact on the organization as a whole. Examples of policy decisions include
setting strategic goals, defining the company's mission, and determining the organizational
structure.

Operating decision-making, on the other hand, relates to the day-to-day operations of an

organization. These decisions are made by lower-level managers and employees and are focused
on implementing the policies and plans established by the top-level executives. Examples of
operating decisions include managing inventory, scheduling production, and addressing
customer service issues.

6. Tactical and Strategic Decision-making

Tactical decision-making refers to the process of making decisions that help implement the plans
and policies established by higher-level management. These decisions are more short-term in
nature and are usually made by middle and lower-level managers. Examples of tactical decisions
include scheduling production, managing inventory, and resolving customer service issues.

Strategic decision-making, on the other hand, refers to decisions that have a significant impact on
the long-term success of the organization. These decisions are usually made by upper and
middle-level management and require careful analysis and evaluation. Examples of strategic
decisions include entering a new market, developing new products or services, and investing in
new technology.

7. Planned and Unplanned Decision-making

Planned decision-making refers to decisions that are made in advance and are part of an
established process. These decisions are based on predetermined criteria and often involve a
systematic approach to problem-solving. Examples of planned decision-making include
budgeting, project planning, and performance evaluations.

Unplanned decision-making, on the other hand, refers to decisions that are made in response to
unexpected events or situations. These decisions may not follow a predetermined process or have
established criteria. Examples of unplanned decision-making include crisis management,
responding to customer complaints, and adapting to changes in the market or industry.
 Forming: This is where team members first meet. It’s important for team leaders to
facilitate the introductions and highlight each person’s skills and background. Team
members are also given project details and the opportunity to organize their
responsibilities.

 Storming: At this stage, team members openly share ideas and use this as an
opportunity to stand out and be accepted by their peers. Team leaders help teams in
this stage by having a plan in place to manage competition among team members,
make communication easier, and make sure projects stay on track.

 Norming: By now, teams have figured out how to work together. There’s no more
internal competition, and responsibilities and goals are clear. Each person works
 more efficiently because he or she has learned how to share their ideas and listen to
feedback while working toward a common goal.

 Performing: There’s a high level of cohesion and trust between team members.
Teams are functioning at peak efficiency with less oversight from team leaders.
Issues still come up, but at this point, teams have strategies for resolving problems
without compromising timelines and progress.

 Adjourning: Teams complete their project and debrief on what went well and what
could be improved for future projects. Afterwards, team members move on to new
projects. Now let’s look at how to use this model to amplify the strengths within
your remote marketing team so that projects are successful and completed on time.

1. Forming — Getting projects started

Marketing is a collaborative task that requires different people with different expertise.
There’s also a ton of background context in marketing—previous campaigns, style
guides, brand guides, and more. Making sure your new hires have quick access to
everything they need to get up to speed is essential to success with a remote marketing
team. That’s why a company like Buffer, a social media management tool, makes
information easily available for team members no matter where they work. They
experimented with a lot of tools to find the right fit for them, but now they have
exactly what they need. Carefully planning each phase of a project helps team members
understand their role within the team and what’s expected of them. For example, when
you start a new project, your lists of tasks could include the following:

 A team intro meeting. Let’s say your team is working on a project to make it
easier for users to navigate your product. You’ll need a copywriter for your content,
an analyst to track and interpret the data you collect, a designer for website and app
updates, and possibly a product manager. Have an all-hands meeting to introduce
 all of these players, including remote team members (virtually), so everyone knows
where to go for answers. Make sure you schedule the meeting at a time that’s as
close to business hours as possible in each time zone. You don’t want one member
to have to wake up at 3 a.m. in order to be included. This is also a good time to
clarify which times zones everyone works in so people don’t have to wait an entire
day for an answer to important questions.

 A skill-set review. It’s one thing for each team member to have a role. It’s quite
another for team members to understand what specific responsibilities each person
has and how that fits into the larger picture. Full knowledge of the skills that
everyone brings to the table, like development, web design, marketing, or product
knowledge. This background will help the team solve problems faster and get the
right information to the correct person on the first try.

 A project and outcomes overview: People need to know what’s expected and how
they fit into the big picture. Explain what’s expected at intermediate deadlines, such
as when you need to capture and analyze new user data, when to run A/B website
testing , or when to do a soft launch to test updates.

 A project timeline: Finally, let team members know how much time they have to
work on the project, and make this timeline accessible to everyone. Break the
project into smaller parts and assign timelines to each one. For example, the
research stage might take a week or two, while updates to the interface take a
month. Be clear on what needs to be accomplished at each checkpoint.

2. Storming — It’s inevitable, there’s going to be conflict

Disagreements are unavoidable on teams, especially when each person on the team has
a different perspective on how to approach the issues the team encounters. When you
all work in the same location, it can be easier to hash out problems quickly. On a
remote team, you need to be more thoughtful about the tools and the processes that you
use to identify and deal with disagreements.

If you’re updating your product’s interface and team members don’t agree on the best
way to design it, they have to revisit what isn’t working with the current interface and
discuss different ways to resolve the problem. Any insights should be shared in a
public forum so everyone in the company can learn.

3. Norming — Finding the rhythm

When teams work in the same space, it’s easy to see what everyone’s doing. Designers
are talking to product managers to get direction, or product managers meet with
analysts to talk about user data and reports. You can physically see and hear progress
being made. It’s different for remote marketing teams because you can’t see what
people are working on. To remedy this problem, put processes in place that make it
easy for designers, for example, to see how content is developing so that they can
anticipate when they’ll be able to complete their updates.

What team leaders can do to help

With remote teams, it’s easy to run on assumptions until you’re almost up against a
deadline — and then you discover that you didn’t get the outcome you needed. Help
your team check in with each other by holding daily stand-up meetings or mid-week
progress reports to see if everyone is on track and has the materials they need.
4. Performing — High-performance is the name of the game.

5. Adjourning — Success! You made it

This is the time for your team to finally step back to see what they’ve accomplished.
Two things happen at this point:

 Teams review the last few weeks or months to celebrate their successes.

 Teams take an honest look at what didn’t go well and pinpoint where there’s room
for improvement.

At the end of the project, set up an online meeting where team members come together
to discuss the entire project, from the successes to the frustrations. Ask them to prepare
examples beforehand outlining what worked and what didn’t, and then give each
person five minutes to share their thoughts. Document the comments so that it’s easy to
see which trends emerge and what changes need to be made going forward.

Characteristics of effective and great teamwork

Depending on the type of work they do, every team is going to look different. That means the
definition of great teamwork changes too. What makes a good team working in bridge
construction might not be the same as what makes a good team working at a dog café.

But as disparate as those examples are, there are certain characteristics that effective teams share.
Here are nine of them:

 Good communication. Each member of the team should be able to communicate

efficiently and openly with other members of the team. Interpersonal skills are as useful
as writing skills in this context, as flexible teams are expected to switch between
collaborating online and off-.
 Individual talent. Each member should bring their own experience, ambition, and
specialist skills to the table, particularly when working on a high-performance team.
 Unique talents drive overall performance and help to cement a member’s place within the
group.
 Team sense of belonging. Understanding where you fit into the wider team and how
your skills interact with those of others will help create social bonds and build trust and
order within the group.
 Strong leadership. There’s a big difference between managers and leaders. The person
in charge should be able to inspire their team, communicate the company’s vision, and
encourage individuals toward a shared goal.
 Clear structure. A simple and well-understood hierarchy is an important feature of
effective teamwork. Knowing the structure of the team helps with decision-making and
conflict resolution.
 Achievable goals. Unrealistic targets can be like kryptonite to great teamwork. If people
sense that success is impossible, enthusiasm for the work can fall by the wayside. When
negative feelings are shared by teammates, they can become compounded, causing
collaboration to suffer.
 Feedback. Teams need feedback to learn and grow, and leaders who rarely offer it can
unwittingly foster a competitive workplace environment in which teamwork may struggle
to flourish.
 Positive attitude. Confidence is infectious—as long as there’s not too much of it—and a
positive outlook can quickly spread throughout a team. Great teamwork comes about
when leaders and workers believe in the mission of the business and want to see it
succeed.
 Solution-focused teams. Nobody can predict the future, but great teamwork allows
groups to adapt to challenging new conditions, and to remain focused on solutions rather
than dwelling on problems.
Conclusions
Great teamwork happens wherever great teams can be together. Whatever ways your teams
collaborate, you should have an office that fits your company’s unique needs. WeWork
designs workplace solutions with flexibility in mind, creating customized hubs that help foster
better teamwork.

What is the decision making process?

The decision making process is the method of gathering information, assessing alternatives, and,
ultimately, making a final choice.

The 7 steps of the decision making process

Step 1: Identify the decision that needs to be made

When you're identifying the decision, ask yourself a few questions:
 What is the problem that needs to be solved?
 What is the goal you plan to achieve by implementing this decision?
 How will you measure success?
 These questions are all common goal setting techniques that will ultimately help you come up
with possible solutions. When the problem is clearly defined, you then have more information to
come up with the best decision to solve the problem.

Step 2: Gather relevant information

Gathering information related to the decision being made is an important step to making an
informed decision. Does your team have any historical data as it relates to this issue? Has
anybody attempted to solve this problem before?
It's also important to look for information outside of your team or company. Effective decision
making requires information from many different sources. Find external resources, whether it’s
doing market research, working with a consultant, or talking with colleagues at a different
company who have relevant experience. Gathering information helps your team identify different
solutions to your problem.

Step 3: Identify alternative solutions

This step requires you to look for many different solutions for the problem at hand. Finding more
than one possible alternative is important when it comes to business decision-making, because
different stakeholders may have different needs depending on their role. For example, if a
company is looking for a work management tool, the design team may have different needs than
a development team. Choosing only one solution right off the bat might not be the right course of
action.

Step 4: Weigh the evidence

This is when you take all of the different solutions you’ve come up with and analyze how they
would address your initial problem. Your team begins identifying the pros and cons of each
option, and eliminating alternatives from those choices.
There are a few common ways your team can analyze and weigh the evidence of options:
 Pros and cons list
 SWOT analysis
 Decision matrix
 Step 5: Choose among the alternatives
The next step is to make your final decision. Consider all of the information you've collected and
how this decision may affect each stakeholder.
Sometimes the right decision is not one of the alternatives, but a blend of a few different
alternatives. Effective decision-making involves creative problem solving and thinking out of the
box, so don't limit you or your teams to clear-cut options.
One of the key values at Asana is to reject false tradeoffs. Choosing just one decision can mean
losing benefits in others. If you can, try and find options that go beyond just the alternatives
presented.

Step 6: Take action

Once the final decision maker gives the green light, it's time to put the solution into action. Take
the time to create an implementation plan so that your team is on the same page for next steps.
Then it’s time to put your plan into action and monitor progress to determine whether or not this
decision was a good one.

Step 7: Review your decision and its impact (both good and bad)
Once you’ve made a decision, you can monitor the success metrics you outlined in step 1. This is
how you determine whether or not this solution meets your team's criteria of success.
Here are a few questions to consider when reviewing your decision:
 Did it solve the problem your team identified in step 1?
 Did this decision impact your team in a positive or negative way?
 Which stakeholders benefited from this decision? Which stakeholders were impacted negatively?
If this solution was not the best alternative, your team might benefit from using an iterative form
of project management. This enables your team to quickly adapt to changes, and make the best
decisions with the resources they have.
A nonprogrammed decision definition is a decision that does not follow a set procedure, and the
criteria for such decisions is not well-defined. The main characteristics of an unprogrammed
decision are: Information on which decision is based is generally incomplete or ambiguous.

Participative decision making (PDM) is the opportunity for an employee to provide input into
the decision-making process related to work matters (i.e., work organization, task priority) or
organizational issues, for example, when they have a say on promoting new strategy ideas.
Elele and Fields state that PDM is a management initiative based on the ”theory Y”, which
suggests that employees are interested in being committed and performing well if managers
value their contributions in making decisions that affect the nature of work. The diverse
opportunities to participate in the decision-making process can provide mutual benefits for
employees and employers. Some writers have proposed that PDM enhances motivation,
organizational commitment, and job satisfaction. The literature frames employee participation in
different contexts, depending on the political, social, and legal environment of the countries.
What is a participative decision
making style?
A participative decision making style is a way of making
decisions that involves involving your team members in the
process. You ask them for their opinions, suggestions, and
preferences, and you take them into account when making
the final decision. You may also delegate some decisions to
your team, or let them reach a consensus among themselves.
A participative decision making style is based on the
assumption that your team has valuable knowledge, skills,
and insights that can improve the quality and acceptance of
the decision.