Decision making
Decision making is a very important and complex process. In order to aid decision makers make the right choice, quantitative techniques are used that improve the overall quality of decision making. Following are some of the commonly used techniques: Decision Trees Decision Trees are tools that help choose between several courses of action or alternatives. They are: Represented as tree-shaped diagram used to determine a course of action or show a statistical probability. Each branch of the decision tree represents a possible decision or occurrence.…
Decision Making Styles
Decision making style of managers depend greatly on their personality and approach towards problem solving. Every leader or manager has his own individualistic style augmented by his experience, background, and abilities. Directive or AutocraticDecision Making Managers who follow this style assess few alternativesAnd consider limited information while taking any decision.They do not find it important to consult with others or seek information in any form and use their logic and idea while taking decisions. Analytical Decision MakingManagers using analytic decision making style would like to have more information and consider more alternatives before coming to a conclusion. They seek relevant information from their sources and consider factual and detailed information before taking any decision. Such managers are careful decision makers as they have the ability to adapt or cope…
Evaluating Decision Effectiveness
The job of the managers does not end with making decisions. They are also responsible to get favorable results from the decision taken and implemented. The effectiveness of a decision can be understood through a systematic and scientific evaluation system that provides feedback on how well the decision is being implemented, what the results have been, and what amendments and adjustments have been made to get the intended results.
Selecting Alternatives
Once the alternatives are analyzed and evaluated, the manager has to choose the best one. The manager needs to choose the alternative that gives the most advantage while meeting all the required criteria. Sometimes the choice is simple with obvious benefits, at times the optimal solution is a combination of several alternatives. At times when the best alternative may not be obvious, the manager uses probability estimates, research and Analysis aided by his experience and judgment.
Develop Potential Alternatives
Recognizing the limiting factor in a given situation makes it possible to narrow down the search for alternatives and make the best decision possible with the information, resources, and time available. Some methods for developing alternatives are: Brainstorming, where a group works together to generate ideas and alternative solutions. Nominal group technique is a method that involves the use of a highly structured meeting, complete with an agenda, and restricts discussion or Interpersonal communication during the decision‐making process. Delphi technique where the participants do not meet, but a group leader uses…
Identify Limiting Factors
In order to choose the best alternative and make a decision every manager needs to have the ideal resources — information, time, personnel, equipment, and supplies. But this is an ideal situation and may not always be possible. A limiting factor is something that stands in the way of accomplishing a desired objective.
Define the Problem
The first step in the process of decision making is the recognition or identification of the problem, and recognizing that a decision needs to be taken. It is important to accurately define the problem. Managers can do this by identifying the problem separately from its symptoms. Studying the symptoms helps getting closer to the root cause of the problem.
The Changing Roles of Management and Managers
Every organization has three primary interpersonal roles that are concerned with interpersonal relationships. The manager in the figurehead role represents the organization in all matters of formality. The top-level manager represents the company legally and socially to the outside world that the organization interacts with. In the supervisory role, the manager represents his team to the higher management. He acts as a liaison between the higher management and his team. He also maintains contact with his peers outside the organization.
Types of Decisions
Decision making and problem solving is a continuous process of analyzing and considering various alternatives in various situations, choosing the most appropriate course of action and following them up with the necessary actions. There are two basic types of decisions Programmed Decisions Non-programmed Decisions Programmed Decisions Programmed decisions are those that are made using standard operating procedures or other well-defined methods. They are situations that are routine and occur frequently. Organizations come up with specific ways to handle them. Programmed decisions are effective for day-to-day issues such as requests for leave or permissions by employees. Once the decision is taken, the program specifies processes or procedures to be followed when similar situation arises. Creating such programed routines lead to the formulation of rules, procedures and policies, which becomes a standard in the organization. Non-programmed…
