UNIT 2: What is Decision Making?

 Decision making is precisely the study of how real individuals at home or work
actually take decisions, that is, what models they use to structure and interpret
their world.
 Decision making is at the centre of several intellectual discipline; economics,
politics, systems analysis and psychology to cite the main ones
 The thought process of selecting a logical choice from the available options.
When trying to make a good decision, a person must weigh the positives and
negatives of each option, and consider all the alternatives. For effective decision
making, a person must be able to forecast the outcome of each option as well,
and based on all these items, determine which option is the best for that
particular situation.

What is Decision Making in Modern Management?

 Integral part of modern management. Making the correct decision at the correct
time.
 While making a decision, positives and negatives of each option must be
weighed, and all the alternatives are to be considered.
What is Decision Making in Simple Words?

 Making choices from among two or more alternatives.

 The process of identifying and selecting a course of action to solve a specific
problem
 Leads to motivated and dedicated employees
What is Decision Making Process?

 As a set of actions and dynamics factors that begins with the identification of a
stimulus for action and ends with the specific commitment to action.
 Formulating a question to be answered
 Gathering information in order to identify and/or create alternative answers to the
questions
 Predicting the consequences of acting on each of the alternative answers.
 Making a judgment/decision by selecting what appears to be the best alternative
answer of the question.
What are the 7 steps of Decision Making Process?

Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the
decision you must make. This first step is very important.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is
needed, the best sources of information, and how to get it. This step involves both
internal and external “work.” Some information is internal: you’ll seek it through a
process of self-assessment. Other information is external: you’ll find it online, in books,
from other people, and from other sources.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct
new alternatives. In this step, you will list all possible and desirable alternatives.

Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried
out each of the alternatives to the end. Evaluate whether the need identified in Step 1
would be met or resolved through the use of each alternative. As you go through this
difficult internal process, you’ll begin to favor certain alternatives: those that seem to
have a higher potential for reaching your goal. Finally, place the alternatives in a priority
order, based upon your own value system.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that
seems to be best one for you. You may even choose a combination of alternatives.
Your choice in Step 5 may very likely be the same or similar to the alternative you
placed at the top of your list at the end of Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative
you chose in Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has
resolved the need you identified in Step 1. If the decision has not met the identified
need, you may want to repeat certain steps of the process to make a new decision. For
example, you might want to gather more detailed or somewhat different information or
explore additional alternatives.

What is Effective Decision Making Skills?

o Assess the situation

By defining the problem, you can be selective about the information you are going to
use to make your decision.

o Make a decision
The ‘fast’ method is a gut feeling, unconscious and automatic. The ‘slow’ method is
rational, conscious and requires mental effort. These two processes can be used by a
leader to make any number of decisions. Your decision-making will also be influenced
by your leadership style. If it is democratic then your decisions will have to reflect the
opinions of others. If it is autocratic this will be less of an issue

o Review your decision

Reviewing our decisions allows us to mitigate the effects of the poor decision as quickly
as possible, and to reduce the number of future poor decisions by learning from our
mistakes.

o An on-going process
Good leader makes good decisions. However, this is an acquired skill, and as with all
skills it requires deliberate practice with coached feedback to ensure that your expertise
develops. Using decisional aids and being open to feedback on your performance.

Types of Decision Making

 Programmed decisions - Programmed decisions are those which are normally

repetitive in nature and are taken as a routine job and responsibilities.

 Non programmed decisions - Is not a routine or repetitive nature. These are

unique and new and they have a long-lasting effect on the organization.

 Major and minor decisions - Among different decisions some decisions are
considerably more important than others and are prioritized.

 Routine and strategic decisions - Routine decision making means such

decisions, which are taken in respect of the day to day activities of the
organization and which require less thinking and advise. These are of a repetitive
nature. Basic decision making means such decisions which are essential for the
existence of the organization and for which complete study, analysis, power, and
critical thinking are essential.

 Organizational and personal decision - Organizational decisions are those

which an executive takes in his official capacity and which can be delegated to
others. On the other hand, personal decisions are those which an executive
takes in his individual capacity but not as a member of organization.

 Individual and group decisions - When the size of the business unit is small
and the decisions to be taken do not require high, specific and technical
knowledge, then the decisions for various problems are normally taken by the
managers himself. Such decisions are known as individual decision-making
technique.

- Group decision making techniques mean such decisions which are not taken
by a single individual, but by a group. This is known as participating decisions
are known as individual decision making.
  Policy and operating decisions - Policy decisions are those which are taken by
top management and which are of a fundamental character affecting the entire
business. Operating decisions are those which are taken by lower management
for the purpose of executing policy decisions. Operating decisions relate mostly
to the decision marker's own work and behavior while policy decisions influence
work or behavior pattern of subordinates.

 Tactical and Strategic Decision Making - Tactical decisions are those which a
manager makes over and over again adhering to certain established rules,
policies and procedures. They are of repetitive nature and related to general
functioning. Strategic decisions on the other hand are relatively more difficult.
They influence the future of the business and involve the entire organization.
Decisions pertaining to objective of the business, capital expenditure, plant
layout, production etc.
 Policy, Administrative and Executive Decisions - Policy decisions are taken
by top management or administration of an organization. Administrative
decisions are made by middle management and are less important than policy
decisions. Executive decisions are those which are made at the point where the
work is carried out.

Example of Decision Making

Even if you do not yet have management experience, you probably have made
decisions in a professional setting.

 Facilitating a brainstorming session to generate possible names for a new

product.
 Brainstorming possible themes for a fundraising campaign.
 Comparing the strengths and weaknesses of three potential vendors for
processing payroll.
 Comparing the leadership potential of different team members and choosing a
project manager.

What is Decision Making in Business?

 Decision making is central to an understanding of organizations and of business.

Decision making raises questions about our understanding of how organization
works.
 It I part of the broader field of organization studies and organization theory. It has
therefore fallowed a similar pattern of evolution, drawing on a variety of
paradigms and perspectives and being characterized by a multiplicity of theories,
models and methodologies.
 Every day a number of decisions must be made that determine the direction and
efficiency of the organization we work for. Decisions are made concerning
 production, marketing and personnel. Decisions are made affecting costs, sales
and margins.

What is Decision Making Skills?

Making good decisions is a life skill that can be learned. The skills and abilities to
make right and effective decisions are some of the most difficult to learn. It is a lifelong
learning process defined by our personal traits, errors, and experience. We have to
make decisions and choices everywhere and almost all the time in our personal and
business life. Some of them are easy to make and requires a short decision-making
process while others are the hardest choices in our life.

Activity Title: Decision-Making in Critical Scenarios

Objective:

To apply the decision-making process in a simulated real-life scenario that criminology

professionals may face.

Instructions:

1. Read the Scenario: Analyze the following situation carefully.

2. Decision-Making Steps: Guide your analysis and decision-making using the 7-step
decision-making process from the lesson. Document each step in detail.
3. Write Your Analysis: After following the process, write a 500-word essay detailing
your final decision, your thought process, and the potential outcomes.
4. Reflection: End your analysis with a brief reflection on what you learned about your
decision-making process.

Scenario:

You are a senior police officer overseeing a high-profile investigation involving a series of
burglaries in your city. One evening, you receive a report that a suspect fitting the description of
the burglar was seen near a warehouse district.

Upon arrival, your team apprehends two individuals who both claim innocence. One of them
matches the physical description exactly, but there is no hard evidence to confirm their guilt. The
community is growing impatient, demanding quick results, and your superiors are pressuring you
to close the case quickly to prevent further unrest. However, rushing may result in errors and
possibly incriminating the wrong person.

Questions to Address:

 How will you identify and gather the relevant information to make a decision?
  What are your alternative courses of action?
 How will you weigh the potential outcomes for each alternative, considering both the
legal and ethical implications?
 What is your final decision, and why?

Assessment Criteria:

 Clarity in applying the 7-step decision-making process.

 Depth of analysis and consideration of alternative actions.
 Ethical considerations in the decision-making process.
 Quality of reflection on personal decision-making.