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Decision-Making Techniques: Traditional and Modern Techniques

Traditional decision-making techniques in organizations include standard procedures and rules that provide consistency for routine decisions. Organizational structure also determines decision-making authority based on a manager's role and access to necessary information. Modern techniques address more complex business environments through approaches like heuristic techniques that break problems into smaller parts and participative decision-making that involves employees at various levels.

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Ayan Ashraf Mohammed
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236 views

Decision-Making Techniques: Traditional and Modern Techniques

Traditional decision-making techniques in organizations include standard procedures and rules that provide consistency for routine decisions. Organizational structure also determines decision-making authority based on a manager's role and access to necessary information. Modern techniques address more complex business environments through approaches like heuristic techniques that break problems into smaller parts and participative decision-making that involves employees at various levels.

Uploaded by

Ayan Ashraf Mohammed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Decision-Making Techniques: Traditional and

Modern Techniques

• Traditional Techniques of Decision-Making:


• (a) Standard Procedures and Rules:
• Every organization develops standard procedures and rules for taking routine and
repetitive decisions. Whenever needed, a manager refers to the standard procedures and
rules before taking simple decisions. An effort is made to have consistency in routine
decisions. Routine decisions do not require application of special skill and knowledge so
such decisions can be taken without much difficulty.
• (b) Organizational Structure:
• A relationship is established between a superior and a subordinate. This relationship
comes out of organizational structure. Persons at different organizational structures are
assigned work to be done by them. For taking up this work, managers need authority to
take decisions. The authority to take decisions needs proper information back up. All
managers or decision making centres are linked to information system for supplying
information when needed.
Modern Techniques of Decision-Making:

• Modern business is facing drastic changes in working. The decision-making is becoming more and more complex these
days. The changing and challenging business environment requires special attention for decision making process.
• Some techniques followed at present are discussed as follows:
• (a) Heuristic Techniques:
• This technique is based on the assumption that in a complex and changing business situation strategic problems cannot
be solved by applying rational and scientific techniques. In an uncertain environment and conflicting interests the
problem will have to be fragmented into small components for taking a realistic view.
• By splitting the problem into small parts and analyzing each part separately, a decision can be reached. It is a trial and
error method based on rules of thumb. Heuristic techniques are developed by managers to deal with various
components at different stages. Computers can easily be used for solving complex and strategic problems. This
technique is a more refined way of trial and error method because it is developed by applying analytical and creative
approach.
• (b) Participative Decision-Making:
• It is method of applying democratic means for decision making process. In traditional managerial techniques, decisions
are taken at top levels of management and these are intimated to lower levels for implementation. In participative
decision-making, employees at various levels are involved in making various decisions. When subordinates are made a
part of decision making, it not only helps in getting the advantage of their practical experience but also helps in
implementing decisions properly. The subordinate staff feels motivated and encouraged and takes active interest in the
working.

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