HOSPITAL ORGANIZATIONS AND MANAGEMENT

THEORY
TOPIC:
TOPIC: DECISION
DECISION MAKING
MAKING
AMITABHA
AMITABHA GUPTA
GUPTA
SWAMI
SWAMI VIVEKANANDA
VIVEKANANDA UNIVERSITY
UNIVERSITY
WHAT IS
DECISION
MAKING
 Decision-making is an integral
part of
modern management. ... 
 Decisions play important roles
as they determine both
organizational
and managerial activities.
 A decision can be defined as a
course of action purposely
chosen from a set of
alternatives to achieve
organizational
or managerial objectives or
goals.
CHARACTERISTICS OF
DECISION MAKING
 1. Decision–making is a selection process and is
concerned with selecting the best type of
alternative.
 2. The decision taken is aimed at achieving the
organizational goals.
 3. It is concerned with the detailed study of the
available alternatives for finding the best
possible alternative.
 4. Decision making is a mental process. It is the
outline of constant thoughtful consideration.
 5. It leads to commitment. The commitment
depends upon the nature of the decision whether
short term or long term.
DECISION MAKING PRINCIPLES
 1. Rational Thinking: t is invariably based on rational
thinking. Since the human brain with its ability to learn,
remember and relate many complex factors, makes the
rationality possible.
 2. Process:
 It is the process followed by deliberations and reasoning.
 3. Selective:
 It is selective, i.e. it is the choice of the best course
among alternatives. In other words, decision involves
selection of the best course from among the available
alternative courses that are identified by the decision-
maker.
DECISION MAKING PRINCIPLES
 4. Purposive:
 It is usually purposive i.e. it relates to the end. The
solution to a problem provides an effective means to the
desired goal or end.
 5. Positive:
 Although every decision is usually positive sometimes
certain decisions may be negative and may just be a
decision not to decide. For instance, the manufacturers of
VOX Wagan car once decided not to change the model
(body style) and size of the car although the other rival
enterprise (i.e. the Ford Corporation) was planning to
introduce a new model every year, in the USA.
DECISION MAKING PRINCIPLES
 6. Commitment:

 Every decision is based on the concept of commitment. In

other words, the Management is committed to every
decision it takes for two reasons- viz., (/) it promotes the
stability of the concern and (ii) every decision taken
becomes a part of the expectations of the people involved
in the organisation.
 7. Evaluation:

 Decision-making involves evaluation in two ways, viz., (i)

the executive must evaluate the alternatives, and (ii) he
should evaluate the results of the decisions taken by him.
7 DECISION-
MAKING PROCESS
STEPS

 1. Identify the Problem:

 To make a decision, you must
first identify the problem you
need to solve or the question
you need to answer.
 Clearly define your decision.
 If you misidentify the problem
to solve, or if the problem
you’ve chosen is too broad,
you’ll knock the decision train
off the track before it even
leaves the station.
2. GATHER
RELEVANT
INFORMATION

 Once you have identified your

decision, it’s time to gather the
information relevant to that
choice.
 Do an internal assessment,
seeing where your organization
has succeeded and failed in
areas related to your decision.
 Also, seek information from
external sources, including
studies, market research, and, in
some cases, evaluation from
paid consultants.
3. IDENTIFY THE ALTERNATIVES

 With relevant information now at your fingertips,

identify possible solutions to your problem.
 There is usually more than one option to consider
when trying to meet a goal—for example, if your
company is trying to gain more engagement on
social media, your alternatives could include
paid social advertisements, a change in your
organic social media strategy, or a combination
of the two.
4. WEIGH THE EVIDENCE

 Once you have identified multiple alternatives,

weigh the evidence for or against said
alternatives.
 See what companies have done in the past to
succeed in these areas, and take a good hard look
at your own organization’s wins and losses.
 Identify potential pitfalls for each of your
alternatives, and weigh those against the possible
rewards.
5. CHOOSE AMONG ALTERNATIVES

 Here is the part of the decision-making process where you,

you know, make the decision.
 Hopefully, you’ve identified and clarified what decision
needs to be made, gathered all relevant information, and
developed and considered the potential paths to take.
 You are perfectly prepared to choose.
6. TAKE ACTION

 Once you’ve made your decision, act on it! Develop a plan

to make your decision tangible and achievable. 
 Develop a project plan related to your decision, and then set
the team loose on their tasks once the plan is in place.
7. REVIEW YOUR DECISION

 After a predetermined amount of time—which you defined

in step one of the decision-making process—take an honest
look back at your decision.
 Did you solve the problem? Did you answer the question?
Did you meet your goals?
DECISION
MAKING MAP
  Gives More Information
 Good decision-making process acquires enough
information before taking any action. In decision making,
there is a large number of peoples involved. It is
undertaken by the whole group rather than by a single
individual. Each person gives his perspective to handle a
ADVANTAGES particular situation.
OF DECISION  Increase People’s Participation

MAKING  Decision making in the organisation is done by a group of

peoples working in the organisation. It is not carried out by
a single individual rather than by a group of people. Each
people actively participates in decision making of the
organisation. They are free to present their creative ideas
without any boundations.
  Provide More Alternatives
 Companies are able to get different alternatives for a
particular situation through group decision making. There
are different people working as a group for proper
ADVANTAGES decisions. Each person looks differently to a particular
problem.
OF DECISION  Improves The Degree Of Acceptance And Commitment
MAKING  Companies always face the chances of conflict among its
staff working in the organisation. Through group decision
making each person gets equal right to share his views
and ideas.
  Improves The Quality Of Decisions
 Decision making helps in taking quality decisions at the
right time. There are different experts engaged by
organisations in their decision-making group. These
ADVANTAGES peoples have through knowledge and creative thinking.
 Helps In Strengthening The Organisation
OF DECISION
 It helps in improving the strength of the organisation.
MAKING Decision making provides a platform to each individual
working in an organisation to equally represent their ideas.
Everybody gets an equal right to take part in managing the
organisation.
  Costly
 The first and foremost disadvantage of decision making is that it is
too expensive to process. Decision making in organisations involves
different peoples for taking proper action. Putting different people
together in one requires large efforts. Also, it is too hard to analyse
the different perspectives provided by people in a group. It all
DISADVANTA requires large funds to systematically collect information from
different people.
GES OF
DECISION  Time-Consuming
 Decisions are of no use if they are not taken timely. Decision making
MAKING involves a series of steps to be followed to arrive at a particular
conclusion. There are different people taking part in decision making.
It takes times and efforts to plan, organise and coordinate different
people for meeting and have quality discussions. All these things
make prove to be time-consuming and may delay in taking proper
action.
  Individual Domination
 This is another disadvantage of the decision-making process in an
organisation. There may be a possibility that all members are not
treated equally in a group created for decision making. Few peoples
DISADVANTA may try to control the whole affairs and may dominate over whole
discussions in meetings. People differ in their knowledge and
GES OF experience in dealing with situations. This enables some people in
dominating over whole group and demoralising other peoples.
DECISION  Ambiguous Responsibility
 Another disadvantage of decision making is that responsibility is not
MAKING clear. In the case of individual decision making, responsibility is on a
single person. But in the case of group decision making, the whole
group is involved and responsibility is not clear. This reduces the
scope of accountability to one person.