decision making -mastering the art rajesh

8/8/2019 Decision Making -Mastering the Art RAJESH

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Your First Step

Boost Your Value

Catch And Carry

Performance Counts

The Right to Decision-Making

Current Updates

Volume : 6

Season : 3

Focus

To Be or Not To Be?

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Your First Step

Nothing is more difficult, and therefore more precious,

than to be able to decide. - Napoleon Bonaparte

Decisions! Decisions! Decisions! It seems like every time we turn around,

we have to make more decisions. The question is, "Are you a good decision- maker?

If you aren't (or don't think you are), there is no need to worry. Decision-making is askill that can be learnt by anyone. Although some people may find this particular skill easier than others, a similar

process needs to be followed for decision- making.

Everybody makes decisions. Some have a short-term impact, for example, deciding what to wear to office.

Other decisions may be more complex and have a longer-term impact, such as 'What am I going to do after

I complete my degree'.

Making a decision is not always easy. To make sure you get the right outcome that you target for, you may needto consider lots of factors.

Wise decisions are decisions that are made using a definite process. Decisions are based on the values

and perceptions of the decision-maker and include carefully- considered alternatives and options along with

periodic reassessments of the decision and its effects.

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Decision-making process:

Decision making typically follows a six-step process:

1. Identify the problem or opportunity

2. Gather relevant information

3. Develop as many alternatives as possible

4. Evaluate alternatives to decide which is best

5. Decide on and implement the best alternative

6. Follow-up on the decision and take corrective action if needed.

In step 1, the decision maker must be sure s/he has an accurate grasp of the situation. The need to

make a decision has occurred because there is a difference between the desired outcome and what is

actually occurring. Before proceeding to step 2, it is important to pinpoint the actual cause of the situation,

which may not always be obviously apparent.

In step 2, the decision- maker gathers as much information as possible because having all the facts gives

the decision- maker a much better chance of making the appropriate decision. When an uninformed decision

is made, the outcome is usually not very positive, so it is important to have all the facts before proceeding.

In step 3, the decision- maker attempts to come up with as many alternatives as possible. A technique known

as "brainstorming," whereby group members offer any and all ideas even if they sound totally ridiculous, is

often used in this step.

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In step 4, the alternatives are evaluated and the best one is selected. The process of evaluating the

alternatives usually starts by narrowing the choices down to two or three and then choosing the best one. This

step is usually the most difficult, because there are often many variables to consider. The decision- maker

must attempt to select the alternative that will be the most effective given the available amount of information,

the legal obstacles, the public relations issues, the financial implications, and the time constraints on making

the decision.

In Step 5 is performed once the decision has been made. Implementation often requires some additionalplanning time as well as the understanding and cooperation of the people involved. Communication is

very important in the implementation step, because most people are resistant to change simply because they

do not understand why it is necessary to change. The decision- maker should communicate the reasons behind

the decision to the people involved in order to ensure smooth implementation of the decision.

In step 6, after the decision has been implemented, the decision -maker must follow up on the decision to see

if it is working successfully. If the decision that was implemented has corrected the difference between the

actual and desired outcome, the decision is considered successful. However, if the implemented decision hasnot produced the desired result, a decision must be made once again. The decision- maker can decide to give

the decision more time to work, choose another of the generated alternatives, or start the whole process over

from the beginning.

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10 ATTRIBUTES OF EFFECTIVE DECISION- MAKERS

1. Knowledge: This is the most important requirement for making sound decisions

2. Initiative: Good decision- makers assume personal responsibility for starting and finishing the

process of decision -making

3. Seek advice: Good decision -makers know they need help and want to help others

4. Focus on important data: Decision -makers seek pertinent facts and data in appropriate amounts

5. Comprehensive view: Decision- makers must consider every possible alternative

6. Currency: Make decisions that are in line with current corporate views

7. Flexibility: Decision- maker remains open-minded and flexible

8. Judgement: Understand that proper procedures do not always result in sound decisions

9. Calculated risk- taking: Weigh risks, responsibilities, rewards and results

10. Self-knowledge: Recognise own capabilities, biases, and limitations

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Boost Your Value

When 10,000 honeybees fly the coop to hunt for a new home, usually a tree

cavity, they have a unique method of deciding which site is right: With great

efficiency they narrow down the options and minimise bad decisions.

DECISION- MAKING STYLES

1. Style A--autocratic The manager makes the decision alone. Discussion is limited to collecting relevantinformation.

2. Style C--consulting The manager shares the decision issue with one or more subordinates--seeking ideas,

opinions, and suggestions--and then makes a decision. All suggestions are considered carefully and objectively

by the manager. The final decision may or may not be influenced by subordinate input.

3. Style G--group process Manager and subordinates work together (as a group) until they arrive at a

consensus decision. (All group members have an equal opportunity to air their opinions and argue for their point

of view.) All suggestions are considered carefully and objectively by each group member. All group membersaccept the final decision and are committed to supporting its implementation.

4. Style D--delegating The manager sets the parameters, then delegates the final decision to one or more

subordinates. The manager is not involved in making the final decision but supports the decision.

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As the manager moves from Style A to Style D, his influence over the final decision drops from 100% to almost zero.

No matter which style is used, the manager retains ultimate responsibility and accountability! Thus, it's important to

understand when to use various styles in order to maximise potential success.

The success of a manager is not a matter of luck or fortune. It's a composite of knowledge, skills, effort, and

personal attributes. Sometimes described as movers, shakers, goers, and doers, effective managers also make

effective decisions. Marvin identifies what he believes to be the 12 most common characteristics of effective

decision- makers.

Effective decision- makers are:

Synoptic. They focus on the big picture, considering all possible opportunities and potentials.

Dissatisfied. They have an inherent preoccupation to make the best better.

Sensitive. They exercise acute sensitivity continuously and consistently towards others and their environment.

Catalytic. They make things happen and assume personal responsibility to do so.

Opportunistic. They take advantage of opportunities and even create opportunities where there seemingly

are none.

Skill-directed. They do not play trial and error; they rely on things they do well and make the most of available

inputs and resources.

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Innovative. They are creative and they draw upon the creativity and strengths of others.

Forward thinking. They look to the future and search for (more) opportunities.

Resourceful. They utilise the expertise and ideas of others, involving them in decision-making as appropriate.

Evaluative. They know what they are doing, asking the right questions and pursuing the answers to those

questions.

Expedient. They get things done.

The professional manager will compare his decision-making characteristics to that of effective decision -makers.

Doing so enables one to identify areas in which he can strive for growth, enhancing decision-making skills. Dare

to improve yourself and your decision-making skills. Make a decision to do so and act!

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As a leader, you need to be open to new ideas and cultivate the intelligence and experience of the employees

in your organization. Team decision making is one avenue for you to do that. But whatever you do in the name

of a "great new idea," remember that too much of a good thing is just that ... too much! With good business

common sense, new ways of managing can add a whole new dimension to results you achieve in the day-to-

day operations of your firm. For information on How are Teams Best Utilized in the Decision Making

Process write to [email protected]


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Catch And Carry

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Making good decisions is a crucial skill at every level. - Peter Drucker

People at different levels in a company have different types of decision-making

responsibilities.

Strategic, tactical, and operational decisions:

Strategic decisions, which affect the long-term direction of the entire company, are made typically by

top managers. Examples of strategic decisions might be to focus efforts on a new product or to increase

production output. These types of decisions are often complex and the outcomes uncertain, because available

information is often limited. Managers at this level must often depend on past experiences and their instincts

when making strategic decisions.

Tactical decisions, which focus on more intermediate-term issues, are typically made by middle managers. The

purpose of decisions made at this level is to help move the company closer to reaching the strategic goal.

Examples of tactical decisions might be to pick an advertising agency to promote a new product or to provide an

incentive plan to employees to encourage increased production.

Operational decisions focus on day-to-day activities within the company and are made typically by lower-level


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managers. Decisions made at this level help to ensure that daily activities proceed smoothly and therefore help to

move the company towards reaching the strategic goal. Examples of operational decisions include scheduling

employees, handling employee conflicts, and purchasing raw materials needed for production.

It should be noted that in many "flatter" organisations, where the middle management level has been eliminated,

both tactical and operational decisions are made by lower-level management and/or teams of employees.

Group decisions

Groups bring a broader perspective to the decision-making process. When people participate in decision- making

they are more likely to be satisfied with the decision and support it, thus facilitating its implementation. Group

decision- making provides the opportunity for discussion to help answer questions and reduce uncertainty for

decision -makers who may not be willing to take risks alone.

Group decision- making has many benefits as well as some disadvantages. The obvious benefit is that there is

more input and therefore more possible solutions to the situation can be generated.

Another advantage is that there is a shared responsibility for the decision and its outcome, so one person does

not have total responsibility for making a decision. The disadvantages are that it often takes a long time to reach

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a group consensus and that group members may have to compromise in order to reach a consensus. Many

businesses have created problem-solving teams whose purpose is to find ways to improve specific work activities.

The group decision- making technique is based on the Vroom-Yetton leadership model. Use this technique to

select an appropriate style and approach for making decisions that involve a group of people.

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The Vroom-Yetton Contingency Model allows leaders to follow a very direct and clear pattern of questioning

and leadership decision making to determine how best to work with subordinates and address a problem.

Vroom and Yetton differentiated leadership within their model into five different managerial decision styles. For

information on Vroom-Yetton Contingency Model write to [email protected]


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Performance Counts

If you as a manager want to lead effectively, you need to be able to make good

decisions. If you can learn to do this in a timely and well-considered way, then you

can lead your team to spectacular and well-deserved success. However, if you

make poor decisions, your team risks failure and your time as a manager will

probably be brutally short.

The most popular techniques are Pareto Analysis, Paired Comparison Analysis, Grid Analysis, Weighing the pros

and cons, Force Field Analysis, Six Thinking Hats, and the Cost/Benefit Analysis. Others include the Decision

Tree and Influence Diagram , which have graphical representations as effective decision-making tools. Any

decision methodology might be helpful in providing some insights, however, the ultimate responsibility is yours in

even deciding what technique to use and what decision to make.

1. Pareto Analysis

Pareto analysis is a very simple technique that helps you to choose the most effective changes to make. It usesthe Pareto principle the idea that by doing 20% of work you can generate 80% of the advantage of doing the

entire job*. Pareto analysis is a formal technique for finding the changes that will give the biggest benefits. It is

useful where many possible courses of action are competing for your attention. Pareto analysis not only shows

you the most important problem to solve, it also gives you a score showing how severe the problem is.

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2. Paired Comparison Analysis

Paired Comparison Analysis helps you to work out the importance of a number of options relative to each other.

Paired Comparison Analysis helps you to set priorities where there are conflicting demands on your resources.

It is also an ideal tool for comparing "apples with oranges" completely different options such as whether to invest

in marketing, a new IT system or a new piece of machinery. These decisions are usually much harder than

comparing three possible new IT systems, for example.

3. Grid AnalysisGrid Analysis (also known as Decision Matrix Analysis)is a useful technique for making a decision. Being able

to use Grid Analysis means that you can take decisions confidently and rationally, at a time when other people

might be struggling to make a decision.

4. Weighing the pros and cons of a decision

PMI stands for 'Plus/Minus/Interesting'. It is a valuable improvement to the 'weighing pros and cons' technique

used for centuries. PMI is a good way of weighing the pros, cons and implications of a decision. When you

have selected a course of action, PMI is a good technique to use to check that it is worth taking.

5. Force Field Analysis

Force Field Analysis is a useful technique for looking at all the forces for and against a decision. In effect, it is a

specialised method of weighing pros and cons. By carrying out the analysis you can plan to strengthen the forces

supporting a decision, and reduce the impact of opposition to it.

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6. Six Thinking Hats

"Six Thinking Hats" is a powerful technique that helps you look at important decisions from a number of different

perspectives. It helps you make better decisions by pushing you to move outside your habitual ways of thinking.

As such, it helps you understand the full complexity of a decision, and spot issues and opportunities which you

might otherwise not notice.

7. Cost/Benefit Analysis

Cost Benefit Analysis is a relatively simple and widely used technique for deciding whether to make a change. Asits name suggests, you simply add up the value of the benefits of a course of action, and subtract the costs

associated with it.

These decision- making techniques help you to make the best decisions possible with the information you have

available. They help you to map out the likely consequences of decisions, work out the importance of individual

factors, and choose the best courses of action.

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A 2004-2005 Teradata Report on Enterprise Decision-Making showed that over 70% of the respondents in

their survey said that poor decision-making is a serious problem for their business. For information on What

Makes a Good Decision Maker - The Three Ingredients For Success write to

[email protected]


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Microsoft Word

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icrosoft Word

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Current Updates

1. Title: The Right to Decision-Making

Teaser: Who takes the call?

Please click on the embedded document to

view the article.

2. Title: To Be or Not To Be?

Teaser: Decisions are consequential.

Heres how leaders can prevent

them from becoming inconsequential

Please click on the embedded document to

view the article.

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The Right to

Decision-Making

To Be or Not To Be?


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Post Your Query

The Knowledge Helpdesk at Gyandhara specializes in answering your Queries in

The areas of Management. This service is being utilized by ABG executives to:

- Enhance workplace effectiveness

- Save precious time & effort by outsourcing your requirement for information/knowledge to us.

Where can I post my Query???

Send your Query to [email protected] we will send you our response within 48 Working Hours.

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Fun Corner

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A man stands dangerously on shopping cart to

reach a box

of stupid os cereal on top shelf


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Microsoft Word

Document

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Test Your IQ

Crossword: Soccer

Crossword

Across

1. Covers the middle of the field

3. Tries to keep the other teamfrom scoring

4. The governing body of world

soccer

6. A pass that results in a goal

8. The team that has the ball

10. Uses head to pass the ball

11. Scores the goals

Down

2. To kick the ball along by

yourself3. Score

5. The team that does not

have the ball

7. To make a goal

9. To dribble the ball

Click on the word document to

open the crossword in a new

window. Fill in the boxes, save the

word document and email it to

[email protected]

as an email attachment to win

early bird prizes.


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Online Courses at GVC

For more info on GVC

Course Title : Rational Problem Solving and Decision-making

SIMULATION

Description : Robofac, Inc. is a leading supplier of robotic systems for

factory automation. The company has had recent success adapting their

technology for more specialized applications, including medical, with the

highly successful introduction of their voice-controlled, laser surgery arm.

Their marketing department is investigating the feasibility of developing

"consumer" robots. You, the Product Manager, must work with the VP of

Marketing, the head of Design, and the head of Engineering to determine

whether or not this is a good business decision and to analyze if

Robofac's infrastructure can absorb the project using only existing

resources. In this simulation, part two of two, the emphasis is on rational

problem solving and decision-making.


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Assess Yourself

Which of the following statements are true

1. Wise decisions are decisions that are made using a definite process.

2. Good decision- makers assume personal responsibility for starting and

finishing the process of decision -making.3. The professional manager will not compare his decision-making characteristics to that of effective

decision makers.

4. If you as a manager want to lead effectively, you need not be able to make good decisions.

5. PMI stands for 'Plus/Minus/Interesting'.

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Bibliography

wsjclassroom.com, mindtools.com, reachout.com, news.cornell.edu, Themanagementor.com


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Answers of Gyandhara Vol-5 Crossword on Punchlines That Sell Products

Across

1. HP

5. CIPLA

9. VISA

13. TATASKY

16. CALVINKLEIN

17. LEVIS

18. AMULMACHO

Down

2. PEPSI

3. GILLETTE

4. ADIDAS

6. DISHTV

7. NIKE

8. PRIYAGOLD

10. AIRTEL

11. BMW

12. RAYMONDS

14. NOKIA

15. CISCO

Crossword Answers


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GYANDHARA Congratulates YOU!!

Early bird participants who have sent correct answers to Listen & communicate : Ensure You

Understand And You Are Understood (Vol-5) Crossword:

1. M Jhunjunwala, Essel Mining & Industries Ltd

2. Vatsal Shah, Indian Rayon Industries Ltd

3. Joseph Azavedo, Corporate Audit

4. Santosh Bansal, VSF, Grasim

5. Shweta Gupta, Thai Rayon Company

6. Shikha Agrawal

7. Ameya Kane, Branch Head - Ghatkopar

8. Kalai

9. Mahima Pal, Category Commercial Supermarkets

10. Jatin,Accounts


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Answers : Assess Yourself

5

4

3

2

1

TruePMI stands for 'Plus/Minus/Interesting'..

FalseIf you as a manager want to lead effectively, you need not be able to make good

decisions.

FalseThe professional manager will not compare his decision-making characteristics to that of

effective decision -makers.

TrueGood decision- makers assume personal responsibility for starting and finishing the

process of decision -making.

TrueWise decisions are decisions that are made using a definite process.

decision making -mastering the art rajesh

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