Divya ChhabraGBPUA&T, Pantnagar

WHAT DOES THIS PICTURE DEPICTS ??

Square wheels at the place of round wheels More human resource Round wheels in the cart

WRONG DECISIONS

DEPICTIONS:

Definition Recognising the requirement of decision Characteristics of decision making Significance of decision making Process of decision making Techniques used in decision making Types of decision making Styles of decision making Levels of decision making

PRESENTATION LAYOUT

Decision = choice made from available alternatives

Decision Making = process of identifying problems and opportunities and resolving them

“Decision-making is the selection based on some criteria from two or more possible alternatives.”

—George R.Terry

DEFINITION

RECOGNISING THE REQUIREMENT OF DECISION

PROBLEM

• situation in which organizational accomplishment have failed to meet established goals

OPPORTUNITY

• situation in which managers see potential in organizational accomplishments that exceed current goals.

Rational Thinking Process Selective  Purposive  Commitment Evaluation:1. Evaluation of alternatives2. Evaluation of results

CHARACTERISTICS OF DECISION MAKING

Pervasive Function : done at all levels i.e. top, level, middle level and operating level.

Indispensable Component: It determines all management functions and covers every part of the organizational structure.

Evaluation Of Managerial Function Selection Of Best AlternativesEstablishment Of Plans And PoliciesSuccessful Operation Of Business

SIGNIFICANCE OF DECISION MAKING

PROCESS

Pros and Cons- The manager usually chooses the alternative with the strongest pros and the weakest cons

Cost Benefit- involves evaluating each alternative on its monetary costs and benefits. This means that the net present value of each alternative needs to be calculated, and the alternative with the highest net present value is selected.

Other decision-making techniques include the lexicographic and scientific methods.

TECHNIQUES OF DECISION MAKING

1. PROGRAMMED DECISIONS:  Programmed decisions are routine and repetitive the organization typically develops specific ways to

handle them.

2. NON PROGRAMMED DECISIONS: Non programmed decisions are typically one shot

decisions that are usually less structured than programmed decision.

TYPES OF DECISION

3. Major and minor decisions:  some decisions are considerably more important than

others and are prioritized.

4. Organizational and personal decision:   Organizational decision is taken by top executives for

official purpose and affect the organizational activities directly.

Personal decisions are concerned to an employee.

CONTD..

Decision Styles

Differences among people with respect to how they perceive problems and make decisions

Not all managers make decisions the same – Directive style– Analytical style– Conceptual style– Behavioral style

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Directive Style

People who prefer simple, clear-cut solutions to problems

Make decisions quickly May consider only one or two

alternatives Efficient and rational Prefer rules or procedures

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Analytical Style

Complex solutions based on as much data as they can gather

Carefully consider alternatives Base decision on objective, rational

data from management control systems and other sources

Search for best possible decision based on information available

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Conceptual Style

Consider a broad amount of information More socially oriented than analytical style Like to talk to others about the problem and

possible solutions Consider many broad alternatives Relay on information from people and systems Solve problems creatively

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Behavioral Style

Have a deep concern for others as individuals Like to talk to people one-on-one Understand their feelings about the problem

and the effect of a given decision upon them Concerned with the personal development of

others May make decisions to help others achieve

their goals

Leadership- No matter who represents the leadership of an organization, he will ultimately be responsible for a decision that is made at any level.

Management Teams-affect daily operations of an organization. Items such as staffing needs, work flow processes, resources and the handling of day-to-day events fall on the shoulders of managers.

Committees - for particular projects or issues and require sufficient time for research and evaluation. An organization chooses committee members based on expertise in the subject.

Group Consensus-Feedback from all levels of the business can garner different perspectives that will help leaders make a more educated decision.

Individual- Decisions made by an individual are often a reaction to a situation that is perceived to be an emergency.

DECISION MAKING LEVELS OF AN ORGANISATION

Activity for decision making process-CONNECT THESE 9 DOTS WITH 4 STRAIGHT LINES WITHOUT BREAKING THE CONTACT BETWEEN PAPER & PEN

You must have tried such ways to solve that puzzle.. Isn’t??

Correct solution..

THANK YOU