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decision making

The document discusses Organizational Decision-Making (ODM), outlining the types of decisions managers face, including programmed and non-programmed decisions. It details the decision-making process, including steps such as identifying problems, establishing criteria, and evaluating outcomes. Additionally, it highlights decision-making styles and techniques to improve decision-making effectiveness.

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Aparna Sharma
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5 views

decision making

The document discusses Organizational Decision-Making (ODM), outlining the types of decisions managers face, including programmed and non-programmed decisions. It details the decision-making process, including steps such as identifying problems, establishing criteria, and evaluating outcomes. Additionally, it highlights decision-making styles and techniques to improve decision-making effectiveness.

Uploaded by

Aparna Sharma
Copyright
© © All Rights Reserved
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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Presented by:-

Aparna Sharma
Msc.(N)2nd year
230424006
Organisational Decision
making
• Organizational Decision-Making (ODM) refers to
the process of making decisions within an
organization, involving both single-actor and
multiple-actor decisions aimed at achieving
effectiveness through continuous relations.
• There are basically two kinds of decision that
managers called upon to make:

Programmed and non-


programmed
Types of Problems and
Decisions
• Structured problems
 Involved goals that clear.
Are familiar(have occurred before)
Are easily and completely defined-
information about the problem is
available and complete.

• Programmed decision
 A repetitive decision the can be
handled by a routine approach.
Problems and Decisions
( cont’d)
• Unstructured problems
 Problems that are new or unusual and for
which information is ambiguous or
incomplete.
 Problems that will require custom-made
solutions.
• Non-programmed decisions
 Decision that are unique and
nonrecurring.
 Decision that generate unique responses.
Types of Programmed
Decisions
• Policy
* a general guideline for making a decision
about a structured problem.
• Procedure
* A series of interrelated steps that a
manager can use to respond ( applying a
policy) to a structured problem.
• Rule
* an explicit statement that limits what a
manager or employee can or cannot do.
Programmed vs. Non-
programmed Decisions
Characteristics Programmed Non-programmed
decisions decisions
Type of problem Structured Unstructured

Managerial level Lower level Upper level

Frequency Repetitive New,unusual

Information Readily available Ambiguous or


incomplete
Time frame for Short Relatively long
solution
Solution relies on Procedures,rules, and Judgment and creativity
policies
The Decision-
Making Process

Implement
the chosen
Alternative

Gather facts and Select the best Follow up and


develop alternative. evaluate the chosen
alternatives. alternative.
Decision Making Process

• Identify a problem and decision criteria


and allocating weights to the criteria.
• Developing, analyzing, and selecting an
alternative that can resolve the
problem.
• Implemented and selected alternatives.
• Evaluating the decision’s effectiveness.
Step 1: Identifying the
Problem
• Problem
* A discrepancy between an existing and
desired state of affairs.
• Characteristics of Problems
* A problem becomes a problem when a
manager becomes aware of it.
* there is a pressure to solve the
problem.
* the manager must have the authority,
information, or resources needed to solve
the problem.
Step 2: Identify the
Decision Criteria
• Decision criteria are factors that are
important ( relevant) to resolving the
problem.
* Costs that will be incurred (investment
required).
* Risks likely to be encountered
( chance of failure).
* Outcomes that are desired ( growth of
the firm).
Step 3: Allocating
Weights to the Criteria

• Decision criteria are not of equal


importance:
* Assigning a weight to each item.
* Places the items in the correct priority
order of their importance in the decision
making process.
Step 4: Developing
Alternatives
Step 6: selecting the
alternative

• Choosing the best alternative


* The alternative with the highest total
weight is chosen.
Step 7: Implementing the Alternative
• Putting the decision to and gaining
comment from those whose will carry
out the decision.
Step 8: Evaluating the
decision’s effectiveness
• The soundness of the
decision is judged by
its outcomes.
* How effectively was
the problem resolved
by outcomes resulting
from the chosen
alternatives?
* if the problem was
not resolve, what went
wrong?
Decision-Making Styles
(cont’d)
• Types of Decision Makers
Directive
Use minimal information and consider
few alternatives.
Analytic
Make careful decisions in unique
situations.
Conceptual
Maintain a broad outlook and consider
many alternatives in making decisions.
Behavioral
Avoid conflict by working well with
others and being receptive to
suggestions.
Characteristics of an
Effective Decision-Making

• It focuses on what is important


• It is logical and consistent.
• It encourages and guides the gathering
of relevant information and informed
opinion.
• It is straight forward,reliable, easy to
use, and flexible.
Managers and Decision-Making
Classical model of management
Traditional description of management that focused on
its formal functions of planning, organizing,
coordinating, deciding and controlling.

Behavioral models
Descriptions of management based on behavioral
scientists observations of what managers actually do in
their jobs.
Techniques for improving decision making

 Brainstorming – idea generation for decision making.


 Nominal group technique (NGT)- problem outlined,
presentation of solution in written form, discussion over
written solutions, and final decision.
 Delphi technique- decision made on the basis of
questionnaire filled by the respondents.
 Consensus mapping- decision made on the basis of the
report presented by the representative of each group after
THANK
YOU!

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