decision making
DESCRIPTION
Decision making in the business fieldTRANSCRIPT
Decision Making
PRESENTED BY:
M.MUHAMEDH ASLAM
M.RAJESH KUMAR
A.SYED IBRAHIM
J.THANGARAJ
A.VEERABATHRAN
Decision Making
Decision making is an essential leadership skill. If you can learn how to make timely, well-considered decisions, then you can lead your team to well-deserved success.
“A Manager by profession is a decision maker,
Uncertainty is his opponent , overcoming it is his mission.’’
Decision Making
Decision making is not easy
It must be done amid
ever-changing factors
unclear information
conflicting point of view
Decisions and Decision Making
Decision = Choice made from available alternatives
Decision Making = Process of identifying problems and opportunities and resolving them
Types of Decision making
Programmed Decisions (routine, almost automatic process) Situations occurred often enough to enable decision rules to
be developed and applied in the future (There are rules or guidelines to follow)
Made in response to recurring organizational problems (managers have made decision may times before)
Example: deciding to reorder office supplies
Non Programmed Decisions
Non-programmed Decisions – (Unusual situations that have not been often addressed)
No rules to follow, since the decision is new
These decisions are made based on information, and a managers intuition and judgment
Example: should the firm invest in a new technology?
Major Decisions
Some decision are considerably more important than others
Degree of Futurity of decisions
A decision which has long range impact Major Decision
eg: like replacement of men by machinery Major Decision
Impact of the decision on other functional areas
When it affects all functional area major decision
Minor Decisions
Impact of the decision on one functional area
If the Decision Affects Only one Functional Area It is a Minor Decision
Recurrence of Decision
Whether Or Not to renew the Office subscription such as “Bussiness week”
Become Minor Decision
Routine Decision
Routine Decision are those which are supportive of ,rather than central
to the company’s operations
Eg: Provision for AC better lighting,parking facilities,cafeteria etc are all
Routine decision
Strategic Decision
Strategic Decision require lengthy deliberation and large funds and are taken by managers at high levels
On the other hand lowering the price of the product,changing the product line,installing of an automatic plant etc are all
strategic decision
Individual and Group Decision
Decision may be taken either Individual or by a Group Individual decision taken majorly when problem is on
routine nature Important and strategic decision which may result in
some change in organization are generally taken by group
Advantage & Disadvantage Of Group Decision
Advantage
Increased acceptance by those affected
Easier Communication
Easier coordination
Disadvantage
Group decision take longer
Group can compromise
Group can be dominated
Group can be indecisive
Decision Making Cycle
Define the problem
Clarify Your Objective
Identify Alternatives
Analyse the consequence
Make a Choice
The Decision Making Process
Define the Problem Clarify your objectives Identify alternatives Analyze the consequences Make a choice
Step 1. Define the Problem
1. Start by writing down your initial assessment of the problem.
2. Dissect the problem.
What triggered this problem (as I’ve assessed it)?
Why am I even thinking about solving this problem?
What is the connection between the trigger and the problem?
Step 2. Clarify Your Objectives
1. Write down all the concerns you hope to address through your decision.
2. Convert your concerns into specific, concrete objectives.
3. Separate ends from means to establish your fundamental objectives.
4. Clarify what you mean by each objective.
5. Test your objectives to see if they capture your interests.
Step 3. Identify Alternatives
1. Generate as many alternatives as you can yourself.
2. Expand your search, by checking with other people, including experts.
3. Look at each of your objectives and ask, “how?”
4. Know when to stop.
Step 4. Analyze the Consequences
1. Mentally put yourself into the future.
Process Analysis
Solving problems by thinking through the process involved from beginning to end, imagining, at each step, what actually would happen.
2. Eliminate any clearly inferior alternatives.
3. Organize your remaining alternatives into a table (matrix) that provides a concise, bird's-eye view of the consequences of pursuing each alternative.
Step 5. Make a Choice
Analyses are useless unless the right choice is made.
Under perfect conditions, simply review the consequences of each alternative, and choose the alternative that maximizes benefits.
In practice, making a decision—even a relatively simple one like choosing a computer—usually can’t be done so accurately or rationally.
Infosys inducts key Decision making group
Infosys has promoted three senior employees to a key decision-making council, thereby also providing the first glimpses of the people who will be implementing the turnaround strategy devised by chairman NR Narayana Murthy.
They heads the "cost optimisation" initiative and "new global delivery model" that information technology services companies rely on to have work carried out both at clients' locations and in India.
Conclusion
All decision-making involves elements of risk and reward. For every decision there are risks. Many organisations are structured so that major decisions are taken at the highest levels. This is because decisions at the top can have major effects for the whole organization.