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.