Download - Decisional Process
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Decisional Process
nizational Behavior
Prepared By:-Tejas
BaldaniyaKiran
MakwanaKevin11
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What is the Decision????
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Decision making models
i. Rationality Models
i. Bounded Rationality and Heuristics Models
i. Embedded Models
i. Individual Decision Making
i. Organizational Decision Making
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Rationality models
Economics and financial discipline emphasized the complete rationality of decision
making based on known alternatives.
Evaluated on the basis of calculation of pay-off and known consistent pattern ofpreferences.
Aim:- i.) maximum profitii.) equalizing managerial cost andiii.) equalizing managerial revenue.
Recent models of rational decision based on ABC(activity based costing).
Other model is EVA(economic value added) in which true cost of capital isdetermined.
And another is MVA(market value added) which is difference between market valueand invested capital.
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Bounded rationality and heuristicsmodels
Rational choice models maximizes the profit by examining all the alternatives basedon all information.
However it is UNREALISTIC.
So rationality is bounded and decision-makers identify obvious alternative andchoose one which is acceptable.
It does not discuss how the choice will be influenced.
Cognitive decision theorist suggested that decision-makers rely on heuristics. Heuristics are used for decision making like:-
i.) availability(judgment on available information)ii.) representativeness(judgment on matching against pre-existing category)
iii.) anchoring(judgment on the initial value and then adjusting it if necessary)
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Embedded models
Alternative to the rationality or bounded rationality models are the psychologicaland cultural embedded models.
This models emphasize the role of Values,
Emotions,Intuition andHabits(for individual decision making)
And are Socially,Culturally andPolitical embedded(for organizational decision making)
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Individual decision making
Etziomis concept
Franks concept
Manbridges concept
Flams concept
Katzs concept
Zeys concept
Habit has also been given central place in decision making.
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Organizational decision making
Micro level decision making to Macro level decision making.
Difference between individual decision making and organizational decision making.
Organizational decisions are no more made by individuals than the choice ofindividuals are made by the hand that sign the papers
March and Shapira point out five main areas demonstrating how rationality modelfails to explain the reality.
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1. Most organization in reality make decision and then collect information to validatethe decision.
1. Most organization copy what others do instead of applying a rational decisionmaking process to organizational change.
1. In reality, means are only loosely coupled to ends and loosely coupled to oneanother, unlike the means-end relation concept in the rationality model.
1. Rationality choice theories are unconcerned with the possibility of uncertainty aboutpreferences.
1. Myth, symbols and rituals are important in decision making but not recognize bythe rational models.
. Decision making is politically embedded.
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conclusion
Decision making both at the individual and organizational levels, is influenced byrational as well as psychological, social, cultural and political factors.
Each case of decision making is unique and requires a multi-disciplinary approachto understand and analyze it.
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Decision Making Styles
Decision: - made by individual- in personal matter/roles related to group/organization
Leadership, animportant role
Decision Making styles for Leaders
Leaders :- Responsible for making decisions ingroup/organizationDiffer according:-Their process orientation
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Leaders style(on the centralization-de centralization continuum)
STYLES DESCRIPTION
1. Autocratic/directive -Define & diagnose the problem-Generates, evaluates & choose among alternativesolution
2. Autocratic with groupinformation input
- Define problem- Diagnose cause of problem,
use group info. To determine cause- List potential solution on his own- Obtain data from group to evaluate the
alternatives & make choice from them
3. Autocratic with groupsreview & feedback
- Define problem, Diagnose its cause & select asolution-Then present to group for understanding, review &feedback
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4. Individual consultativestyle
- Define problem-Share definition with individuals-Solicits idea for problem cause & potential solutions-Individuals expertise in evaluation of alternativesolution
-After obtained info. Leader make choice the solution
to implement
5. Group consultative style - Define problem
-Share definition with group-Solicits idea for problem cause & potential solutions-Individuals expertise in evaluation of alternativesolution-After obtained info. Leader make choice the solutionto implement
6. Group Decision Style -Leader Define problem-Share definition with group-Group diagnose the cause of the problem-Group generates, evaluates & choose among the
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7. Participative Style -Group do the entire decision
making process-Leader roles as processfacilitator
8. Leaderless Team -No leader -Person changes from problemto problem
-Group do the entire decisionmaking process
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Individual Decision-making Styles
Styles
1 Deep deliberation
2 Impulsive decision
3 Escape
4 Compliance
5 Safe Playing
6 Procrastination
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CONSENSUS BUILDING
Identify the problem
Identifying alternative strategies
Prioritizing strategies
Selecting and detailing strategy
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Factors Hindering Consensus
Dominating by few
Withdrawal
Tendency to make a quick decision
Testing strengths
Avoiding confrontation
Trading or compromising
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Factors Facilitating Consensus
Concern for others
Listening
Identifying and using resources
Discussing underlying assumptions and logic
Testing consensus and disagreements
Process
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CONSENSUS COMPETENCIES
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Deciding priorities
Analyzing the problem at several levels
Generating alternatives
Discussing the consequences of each alternative
Developing criteria for decision making
Reviewing
PROBLEM SOLVING
2020
T k F ilit ti
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Task Facilitating
Initiative
Information seeking
Giving Information
Summarizing
Expressing opinions
Synthesizing
Focusing on strategies
Time keeping
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Beginning
EndAttention to problem solvingAnd group-building functions
Attention to taskfunctions
LifeofaG
roup
Three Types of Functions During the Life of a Group
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SALES TARGET AT KNBBANK
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OVERVIEW OF CASE STUDY
INTRODUCTION TO KNB BANK
GROWING PRIVATE SECTOR BANK.
SAFE AND SECURE BANKING.
ENTERED INTO JOINT VENTURE WITH A UK BASED INSURANCE
COMPANY.
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PROBLEMS WITH TIRUPURBRANCH
UNDER PERFORMANCE
LOW CUSTOMER SATISFACTION
LACK OF EMPLOYEE PARTICIPATION
PROBLEMS WITH MANAGEMENT
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APPROACH BY KNB BANK
APPOINTMENT OF NEW MANAGER
FIXED TARGETS FOR THE BRANCH
JOINT VENTURE WITH SECURE INSURANCE SERVICES.
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DIVERSIFICATION
HUGE GROWTH OF INSURANCE SECTOR
COMPETITIVE EDGE
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MEETING
DISCUSSED BRANCH PROBLEM
BANKS FORAY INTO INSURANCE SECTOR
ADDITIONAL RESPONSIBILITIES TO EMPLOYEES
LITTLE EMPLOYEE PARTICIPATION
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MEETING
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OUTCOMES OF MEETING
ENFORCEMENT OF SALES TARGET .
JOB ENLARGEMENT OF EMPLOYEES.
NO SUBSTANTIAL INPUTS FROM EMPLOYEES
RESENTMENT AMONG EMPLOYEES
ACTION PLAN WAS REJECTED BY EMPLOYEES
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OUTCOMES OF MEETING
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QUESTIONS FOR DISCUSSIONS
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RAJ MALHOTRA ENCOURAGED EMPLOYEEPARTICIPATION IN THE DECISION MAKING
PROCESS OF HIS BRANCH
TO COPE UP WITH THE NEW CHALLENGE
INCREASE IN DOMAIN KNOWLEDGE OF FINANCIALPRODUCTS
EMPLOYEES MISSED THE OPPORTUNITY TO EXPRESSTHEIR VIEWS.
INNOVATIVE IDEAS FROM THE SUBORDINATES
ABLE TO CONCLUDE MEETING/AGENDA IN AN EFFICIENTMANNER
EFFECTIVE WAY OF COMMUNICATION
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Wh ld lh ld d b ild
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What could malhotra could do to buildconsensus leading to commitment for
action? MAKE AN ACTION PLAN FROM ALL THE EMPLOYEES OF THE
BANK
ABILITY TO DO WORK THROUGH THE OTHERS
MAKE THE QUESTIONNIARE TO JUDGE THE SKILLS OF
EMPLOYEES
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Malhotra attempted to developconsensus but failed. Which processes
impeded consensus building? MAKE THE TWO WAY COMMUNICATION
COACHING, MENTORING
EXAMPLES OF CORPORATES WHICH ARE IN
DIVERSIFICATION MAKE EMPLOYEES AWARE OF MISSION AND VISSION OF BANK
FEEDBACK FROM EMPLOYEES THROUGH A RESULT ORIENTEDWAY
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BENEFITS OF EMPLOYEE PARTICIPATION
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Employee Engagement
Opps for
upwardfeedback
Feelinginformed
Mgtcommitment
toorganisation
Managersfairnessre: issues
Treatingemployees
With t
Engagement
Performance
Intention toStay
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