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Decision Making: The Essence of Managers' Job: by Muhammad Iqbal Malik
Decision Making: The Essence of Managers' Job: by Muhammad Iqbal Malik
Decision Making: The Essence of Managers' Job: by Muhammad Iqbal Malik
Key Topics
Introduction
Decision Styles
A discussion on Group Decisions
Part I
Introduction
Organizations
Organizations are systems
Managers
Managers are responsible for effective
and efficient execution of these
organizational functions.
A typical manager performs a number
of functions that are categorized as:
Interpersonal
Informational
Decisional
Managers
One of the key traits that distinguish
managers from operatives is the ability to
make independent decisions.
Part II
Decision-making
What is decision-making?
The word decision is defined as:
Decision-making Process
Identifying a problem
Problem Definition
Problem is a discrepancy (difference)
between an existing and a desired state.
Example:
The manager has resigned, and we need
another manager
Here the phrase manager has resigned
reflects the current state while need
another manager represents a desired
state.
Communication skills
Planning and analytical skills
Professional experience
Weight
Relevant qualifications
Leadership skills
Communication skills
Analytical skills
Professional experience
Developing Alternatives
Involves defining the possible
alternatives (or choices) that would
resolve the problem.
In our case, the alternatives would be
a list of candidates or job applicants.
Analyzing Alternatives
Alternatives are rated and analyzed
on the basis of the criteria
The rating can be based on a specified
scale, say 1 5 etc.
Qualification
Leadership
Communication
Analysis
Experience
Kamran Ashraf
Rahila Mushtaq
Tasaduq Hussain
Zubair Ahmed
Maliha Javed
Qualification
Leadership
Communication
Analysis
Experience
Total
Kamran Ashraf
15
38
Rahila Mushtaq
12
33
12
10
42
Zubair Ahmed
25
16
54
Maliha Javed
12
25
12
12
63
Tasaduq Hussain
Selecting an alternative
Involves choosing the best alternative,
based on the above rating and analysis
Generally implies selecting the
alternative with the highest score.
Evaluation
Evaluation forms an integral part of
any process
Involves evaluation of the outcome
based on the desired goal and criteria
Decision-making Models
Model
Rational/Bounded Rational
So Rational and Bounded Rational Models
are cognitive models that describe how
managers make rational decisions
2. Set goals
External and
internal
Environ. forces
3. Search for
alternative
solutions
6. Implement
the solution
selected
5. Choose 4. Compare
among
and evaluate
alternative
solution
solutions
Intuition
An unconscious process of making
decisions on the basis of experience and
judgment
Intuition
Involves gut feeling
Decision Types
Effective managers make various kinds of
decisions. In general, these decisions are
either
Programmed decisions
Non-programmed decisions
Programmed Decisions
A decision that is repetitive and routine
Non-programmed Decisions
A decision that is novel (new or
unique) or Ill structured
No established methods exist, because
it has never occurred before or
because
It is too complex
Non-programmed Decisions
Organizational
Levels
Nature of
Problems
Nature of
Decision-making
Non-programmed Decisions
Are tough decisions that involve risk
and uncertainty and
call for entrepreneurial abilities
Such decisions draw heavily on the
analytical abilities of the manager
Examples: Moving into a new market,
investing in a new unproven
technology, changing strategic
direction
Decision Styles
Decision-making, though a rational
process does include some subjective
elements
Thus in real organizational settings, the
quality of decision does depend on the
ability, style and approach of the
manager
AI
The decision is made individually, using
the information available to the individual
only
CI
The manager shares the problem with
relevant subordinates individually
GI
The problem is shared to subordinates
as a group
Alternatives are generated and
evaluated collectively
Group Decision-making
The factors requiring group decisions
include:
Involving sensitive issues
High cost alternatives
Involving very high risk factor
Strategic impact
Coordination is easier
Communication is easier
Existence of large alternatives
More information can be processed
Diversity of experience and
perspectives
Unimportant to group
Manager can take decision
Incapability of members
Managers dominance
Data collection
Importance of acceptance
Importance of solution
Complex problem
Democratic process
Better understanding
Whole responsibility
Feedback required
Improving Group
Decision-making
Brainstorming