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Principles of Management: Decision Making

This document discusses principles of management and decision making. It explains rational decision making as following steps of planning by considering alternatives and evaluating them. Decisions can involve limitations in time and information leading to safer options. Critical roadblocks must also be considered. Alternatives are evaluated both quantitatively and qualitatively, and selecting alternatives may rely on past data, experimentation, or research. Decisions can be programmed by established rules or non-programmed and novel. Creativity involves developing new ideas through unconscious scanning, intuition, insight, and formulation, while innovation applies ideas differently. Brainstorming aims to generate many radical ideas without criticism to encourage improvement.

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69 views

Principles of Management: Decision Making

This document discusses principles of management and decision making. It explains rational decision making as following steps of planning by considering alternatives and evaluating them. Decisions can involve limitations in time and information leading to safer options. Critical roadblocks must also be considered. Alternatives are evaluated both quantitatively and qualitatively, and selecting alternatives may rely on past data, experimentation, or research. Decisions can be programmed by established rules or non-programmed and novel. Creativity involves developing new ideas through unconscious scanning, intuition, insight, and formulation, while innovation applies ideas differently. Brainstorming aims to generate many radical ideas without criticism to encourage improvement.

Uploaded by

DotRev Ibs
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Principles of Management

L e s s o n Wase 2004-05
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Decision Making

Lesson - 6
1

RATIONAL DECISION MAKING


Decision Making: Selection of a course of action from various
Alternatives -An important function of planning Rationality in Decision Making: Follows steps of Planning:
Premising, Alternatives, Evaluating, Selecting

Limited or Bounded Rationality:


Taking decisions: With limitations in Time, Information etc. May lead to a Play safe path.

Principle of Limiting Factor:


Critical road blocks in the path to achieve the goal,

Wase 2004-05

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EVALUATION OF ALTERNATIVES
Quantitative Factors (Numerical) Qualitative Factors ( Intangible Factors ) Marginal Analysis

Cost Effective Analysis

Wase 2004-05

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SELECTING AN ALTERNATIVE
Experience or Relying on Past Data
Monsoon, Stock Prices, Salary Hikes

Experimentation or No Data scenario


Launch of new product, New businesses

Research and Analysis


Designing an aircraft, Medical science

Wase 2004-05

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DECISIONS
Programmed Decisions
Go by the rule book Lathe operator, Car mechanics, Telephone operators

Non-Programmed Decisions
Unstructured, novel and ill-defined situations new product, new design, new market segment

Wase 2004-05

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DECISIONS IN AN ORGANIZATION
Unstructured Non-Programmed

Hierarchy
Structured Programmed

PROBLEMS
Wase 2004-05
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DECISIONS 6

DECISIONS
Under CERTAINTITY, UNCERTAINTY, RISK

Certainty: Known outcome

Uncertainty: Lack of information, Result?


Risk: Incomplete Factual information available,
Most decision involve many variables Ex. New Business
Wase 2004-05
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Creativity and Innovation


Difference Between Creativity & Innovation.
Creativity: Is the ability and power to develop new ideas

Innovation: Is using these ideas differently

Wase 2004-05

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Creativity and Innovation


Four Phases of Creativity:
- Unconscious Scanning:

- Intuition:
- Insight:

Connecting the conscious to the unconscious Hard work , Flash Test, experiment, criticise

- Logical Formulation:

Wase 2004-05

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Creativity and Innovation

Right
Creative, Spontaneous Unconscious Conscious

Left
Logical/Analytical/ Systematic

Intuition

Contradictory Concepts may Result

Problem
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10

Creativity
Process of Brainstorming Four Golden Rules of Brainstorming: - 1. No ideas are ever to be criticised - 2. The more radical the idea, the better - 3. The quantity of idea production is stressed - 4. The improvement of ideas is encouraged.
Wase 2004-05
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11

End of Lesson - 6

Wase 2004-05

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12

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