DECISION MAKING

Manager is oriented towards decisions rather than towards performing the actions personally; the actions are carried out by

others

Decision can be defined as a course of action consciously chosen from available alternatives for the purpose of achieving

desired results

Decision involves:

Choice from alternatives Mental process at conscious level Purposive

Decision Making Process

Steps

1. Understanding the situation:

Be aware of the factors that set the state for the decision. If time

available allow facts to simmer for a while

2. Recognition/Identification of the right problem:

Do not jump for right answer without knowing the right problem

3. Search for and analysis of available alternatives and their

probable consequences: (creative thinking begins)

Mathematical models, theory of probability, economic concepts.

Use of logic is the key to this step

A premise is a statement of the relationship between a cause

and a consequence

If we do A, then B will result, i.e. evaluate the consequences -

'desired' and 'undesired' consequences

First: Desirable to recognize the premise upon which approach is

based

Second: Test the validity of the premise

Third: Distinguish between value premise and factual premise

4. Evaluation/Analysis of alternatives

Time available vs. sophisticated analysis

5. Selection of the solution

Best solution vs. satisfactory one

Optimization: Decision must be accepted by the organization

6. Implementation: Design and Monitoring

Decision making by individuals

Decision making by groups

COMMITTEE

Cooperative decision making is a process by which a group attempts

to develop a composite mind

Committee: Critical factor in successful committees is the

explicit statement by the appointing authority as its

expected functions

Purpose of Committee

1. Collecting information

2. Secure support

3. Make a decision

4. Negotiate

5. Stimulate

6. Distribute information (sharing)

7. Representation

8. Coordinate

9. Train juniors

Advantages of Committees

1. Opinion of specialists other opinions

2. Interaction of different departments

3. Feeling of participation

4. Training

5. Representations

6. Creative thinking (Brainstorming)

Disadvantages of Committee

Costly considering value of time of each member

Normally require longer time; inadvisable if decision has to be taken promptly

Unwillingness of members to back down from publicly announced position

Personal antipathy to or excessive respect for the opinions of particular individuals

Skill in verbal debate

Bandwagon effects

Buck passing may result no one is held responsible for a decision

Decision Making Process: Role of Creativity

In the decision making process, Creative thinking begins at the stage

of generation of alternatives and continues till the final decision is

made

1. Creativity is:

# The development of new methods of doing things

# Ability to be productive through imaginative skills

# Thinking process which solves problems that had remained

unsolved earlier

# Ability to generate ideas

# An essential element for effective planning

# Present in almost every individual but the extent to which such

capability is effectively used varies person to person

2. Who is a Creative thinker?

Who has:

# Ambition must have a dream

# Perseverance used to hard intellectual work

# Enthusiasm optimism

# Energy stamina

# Knowledge both depth and breadth

# Desire to use imagination for productive purpose

3. Some Psychological Requirements of Creative Thinking:

# Detachment detach your mind from every day concern and try to look at the problem from a distance

# Involvement then put yourself into the problem and try to put yourself into other peoples shoes

# Deferment dont come to quick solution, it may be premature, discipline yourself and dont jump to conclusions

# Speculation try to think of alternative possibilities

# Objectivity detach yourself from the object as the solution to the problem emerges

4. Techniques of Creative Thinking

# Logical thinking

# Linking together different existing ideas or information

# Go through the decision making process

# Brainstorming

# Synectics or joins together different and apparently irrelevant elements

5. Sub process of the Creative Process

# Saturation becoming thoroughly familiar with activities and ideas related to problem

# Deliberation analyzing from several view points

# Incubation letting inner self or the sub-conscious mind work

# Illumination hitting upon bright ideas

# Accommodation adapting and refining