SUBJECT : MANAGEMENT THEORY AND PRACTICE

SUBMITTED TO: PROFESSOR SAJID MEHMOOD

SUBMITTED BY: HUSNAIN ALI SADDIQUE
SEMESTER : MBA 7TH
ROLL NUMBER: 14074220-041
CHAPTER : 19,20
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

Decision choice made from available alternatives

Decision Making process of identifying problems and opportunities and resolving them
HOW DO YOU MAKE DECISION IN ORGANIZATION
1. Create a constructive environment.
2. Investigate the situation in detail.
3. Generate good alternatives.
4. Explore your options.
5. Select the best solution.
6. Evaluate your plan.
7. Communicate your decision, and take action.
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

FIVE TECHNIQUES FOR EFFECTIVE DECISION MAKING:

1 Brainstorming :It is a combination of group problem-solving and discussions
2. Nominal group technique :In a nominal group technique, the team divides itself into
smaller groups and generates ideas .
 Team members then discuss and vote on the best possible choice. The choice that receives
the maximum votes is accepted as the group decision.
3. Multi-voting:It starts with a round of voting where an individual casts his vote for the
shortlisted options. Each individual can cast one vote at a time.
4. Delphi method:In this method of decision-making, the facilitator allows team members
to individually brainstorm and submit their ideas
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

5. Electronic meeting : Here, the decision-making process takes place virtually with the
help of technology. For instance, we can have a Skype call
CATAGORIES OF DECISIONS:
Programmed Decisions
Individuals naturally make programmed decisions on a daily basis. For example, in an
emergency, most people automatically decide to call 9-1-1
Unprogrammed Decisions
An individual may make an unprogrammed decision when she visits a new restaurant, is
unfamiliar( un known) with the menu and the menu is in a language she does not
understand
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

THREE DECISION MAKING MODELS

CLASSICAL MODEL THEORY
Clear-cut problem and goals
Condition of certainty
Full information about
Alternatives and their outcomes
Rational choice by individual
For maximizing outcomes
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

Administrative Model
Decision goals often are vague, conflicting and lack consensus among managers;

Rational procedures are not always used

Managers’ searches for alternatives are limited

looks to past experience

POLITICAL MODEL
Closely resembles the real environment in which most managers and decision makers
operate
Useful in making non-programmed decisions
Disagreement and conflict over problems and solutions are normal
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

SIX STEPS IN DECISION MAKING

1 ACCEPTANCE OF DECISION REQUIREMENT
2 INVESTIGATION AND ANALYSIS OF CAUSES
3 DEVELOPMENT OF ALTERNATIVES
4 SELECTION OF DESIRE ALTERNATIVES
5 IMPLEMENTATION OF CHOOSEN ALTERNATIVES
6 EVALUATION AND FEEDBACK
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

Certainty
all the information the decision maker needs is fully available
Risk
decision has clear-cut goals
good information is available
future outcomes associated with each alternative are subject to chance
Uncertainty
managers know which goals they wish to achieve
information about alternatives and future events is incomplete
managers may have to come up with creative approaches to alternatives
Ambiguity
by far the most difficult decision situation
goals to be achieved or the problem to be solved is unclear
alternatives are difficult to define
information about outcomes is unavailable
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

DECISION STYLES IN ORGANIZATION:

Directive style
People who prefer simple, clear-cut solutions to problems, Make decisions quickly, May
consider only one or two alternatives
Analytical style
Carefully consider alternatives
Base decision on objective, rational data from management control systems
Search for best possible decision based on information available
 CHAPTER 19
DECISION MAKING IN ORGANIZATIONS

CONCEPTUAL STYLE:
Consider a broad amount of information
More socially oriented than analytical style
Like to talk to others about the problem and possible solutions
Consider many broad alternatives
BEHAVIORAL STYLE:
Have a deep concern for others as individuals
Like to talk to people one-on-one
 CHAPTER 20
HUMAN RESOURCE PLANNING

INTRODUCTION
HRP offers an accurate estimate of the number of employees required with matching skill
requirements to meet organizational objectives.
OBJECTIVES OF HUMAN RESOURCE PLANNING
Forecast personnel requirements
Cope with changes
Use existing manpower productively
Promote employees in a systematic way
 CHAPTER 20
HUMAN RESOURCE PLANNING

IMPORTANCE OF HUMAN RESOURCE PLANNING

Create a talent pool
Prepare people for future
Cope with organizational changes
Cut costs
Help succession planning
 CHAPTER 20
HUMAN RESOURCE PLANNING

Forecasting the demand for human resources

External challenges
Economic developments
Political, legal, social, technological changes
Competition
Organizational decisions
Workforce factors
 CHAPTER 20
HUMAN RESOURCE PLANNING

THE PROCESS OF HRM

External Challenges: Liberalisation, privatisation and globalisation (LPG era)
have created huge demand for people in software, finance marketing, and
manufacturing fields.
Organizational Decisions: Decisions such as expansion, diversification, and
relocation leading to demand for people possessing requisite skills
Workforce Factors: Such as retirement, resignation, and termination etc creating
manpower gaps
 CHAPTER 20
HUMAN RESOURCE PLANNING

FORECOSTING TECHNIQUES

Expert forecasts
Trend analysis
Workforce analysis
Workload analysis
 CHAPTER 20
HUMAN RESOURCE PLANNING

A VARIETY OF HR PLAN

Recruitment plan
Redeployment plan
Redundancy plan
Training plan
Productivity plan
Retention plan
 CHAPTER 20
HUMAN RESOURCE PLANNING

RESPONSIBILITY FOR HUMAN RESOURCE PLANNING

HRP is a top management job. HR plans are usually made by the HR division in
consultation with other corporate heads. Any deviations from the formulated plans and
their causes must be looked into, from time to time in order to assess whether the plans
require revision or modification.
 CHAPTER 20
HUMAN RESOURCE PLANNING

LIMITATION OF HUMAN RESOURCE PLANNING

HR professionals are basically confronted with three problems while preparing and
administering HR plans:
accuracy,
inadequate top management support,
lopsided focus on quantitative aspects.
 CHAPTER 20
HUMAN RESOURCE PLANNING

Internal labour supply:

A manpower inventory in terms of the size and quality of personnel available
(their age, sex, education, training, experience, job performance, etc) is usually
prepared by HR departments. Several techniques are used while ascertaining the
internal supply of manpower (a supply of employees to fill projected vacancies
can come from within the firm or from new hires )
 CHAPTER 20
HUMAN RESOURCE PLANNING

External Labour supply:

External hires need to be contacted when suitable internal replacements are not available. A
growing number of firms are now using computerised human resource information systems
to track the qualifications of hundreds or thousands of employees. HRIS can provide
managers with a listing of candidates with required qualifications after scanning the data
base.