DECISION MAKING & PROBLEM description.eg.

Decision to transfer or
SOLVING deploy employee. But personal decisions,
DECISION which relate to the manager as an individual
and not as a member of the organization.eg.
- A conscious choice, the individual knows
Resigning
- made after evaluating different 4. Individual and Group Decisions
alternatives or solutions for the purpose of When a decision is taken by an
achieving a certain result individual in the organisation, it is known as
- a process of one alternative from among individual decision. Groups or collective
a set of alternative decisions refer to the decisions which are
CHARACTERISTICS OF A GOOD taken by a group of organizational members
DECISION 5. Policy and Operating Decisions
Policy decisions are of vital
- Based on a complete investigation importance and are taken by the top
- Identify and evaluate each management/whole organization. They affect
alternatives/solutions the entire enterprise. But operating decisions
- Select the best solution/ alternative are taken by the lower management in order
to put into action the policy decisions/not
- Effective strategy for implementation affect entire organization.
TYPES OF DECISION
1. Programmed and Non Programmed CONTINUUM OF DECISION STYLES
Decisions
- A range of action related to the degree of
The programmed decisions are authority used by the manager and to the
of a routine and repetitive nature which area of freedom available to non-
are to be dealt with according to specific managers in arriving at decision
procedures/structured problem/
expected. But the nonprogrammed
decisions arise because of unstructured
problems/no specific
program/procedure eg. group of people
become absent

2. Operational and Strategic Decisions

Tactical or routine decisions are
made repetitively following a certain
established rules, procedures and
White (Resistance to change)
policies/higher. The strategic decisions
relate to policy matters and so require a Grey (Time to make decision)
thorough fact finding and analysis of the
A column
possible alternative/long term decision.
3. Organizational and Personal Decisions - Manager solves the problem and makes
Organizational decisions are those decisions
which a manager takes in his official - Subordinates are not included in decision
capacity/for the organization/job making
A1
- Information about the problem is only
available to the manager.
A2
- You have information from your
subordinates
- The resistance lowers because of the
involvement of the subordinate
C column
- Sharing of problem to your subordinates.
However, the decision making is the
responsibility of the manager.
C1
- Shares problem to your subordinate
individually.
- Approach person A to ask for opinion
and then proceed to ask person B
separately and ask for opinion.
- Collect ideas individually.
C2
- Instead of individually, you share the
problem in a group meeting.
- Get the ideas of everyone but decide on
the decision on your own.
G Column
- Share the problem and involve the
subordinates to decision making.
G1
- Share the problem individually and
together analyse the problem and make a
decision.
G2
- Share the problem with your
subordinates within a group meeting.
Analyze the problem and come up with a
decision.
D1
- Delegate the problem to your subordinate
- Assign the problems to your subordinates
by providing the relevant information to
your subordinates
- Each person delegated by a the problem
will have a sole responsibility of the
decision making,
DECISION MAKING PROCESS
1. Identify the problem or determine
objectives.
2. Gather facts and evaluate information
3. Develop and evaluate alternative
solutions or options
4. Select best alternative
5. Implement solution and follow up
consequences
RISKS
- Anchoring trap
o Whenever you make a decision
then you receive information
(initial impression).
o Basing your decision based on
your initial impression.
- Status-quo trap
o “Status-quo” means current
situation (standard)
o If ever you are bias according to
the standard situation, you
cannot see better alternatives.
- Sunk-cost trap
o Make a choice just to justify your
past choices.
- Confirming evidence trap
o Seek out information just to
support your point of view.
- Framing trap
o Connected to identifying
problem or determining
objectives.
o The way you frame your
understanding to the problem,
there will be error in your initial
frame of the problem.
 - Overconfidence trap in the discussion are with diverse
o When a person is used to being experience and skills.
successful, they become o People are chosen to be the
overconfident to their abilities. problem solving team
- Prudence trap - Nominal method
o “Prudence” means being careful. o Highly structured meeting.
o Over cautious of their decision o Every individual in the meeting
they are about to make. are to write original ideas in
o Thinks of the worst case private and submit it to the
scenario. facilitator.
- Recallability trap o The facilitator will present the
o Decisions based on past events ideas anonymously. The ideas
or based on past events that left a will be voted out by the
great impression on the decision participants.
maker. - Delphi method
o Modified nominal method.
PROBABILITY ANALYSIS o The ideas are solicited through
- A certain individual will analyse what is questionnaires.
the probability of a certain event. o Present to the meeting and voted
out by the participants.
A PRIORI PROBABILITY
- Predictions obtained by deductions based
on assumed conditions.
EMPERICAL PROBABILITY
- Determined from the recording of actual
events over a specific period of time.
SUBJECTIVE PROBABILITY
- Based on the knowledge and experience
of the decision maker.
DECISION MAKING TECHNIQUES
- Group discussion
o Similar to brainstorming
however in group discussion
there is topic and there will be
someone that keep tracks of the
discussion.
- Brainstorming
o Even if the idea is out of topic it
will still be noted. The idea will
be evaluated later.
- Synectics
o Like a group discussion. The
difference is that the individuals