Decision making

Decision making

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  Remya Menon
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  What is decision?? A conscious choice among alternatives followed by action to implement the choice  Decision without action is meaningless 2Remya Menon
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  Decision Making Decision makinginvolves –  Complex mix of knowledge  Experience  Creative thinking  Risk taking 3Remya Menon
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  Decision Making Knowledge Emotion Reason Individual factors Imagination Uncertainty Risk Group factors Decision making variables 4RemyaMenon
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  Types of ManagerialDecisions Programmed DecisionsNonprogrammed Decisions  Response to repetitive and routine problems, which is handled by a standard procedure that has been developed by management.  Policies are laid down to handle such situations  “Policy” are the guidelines for managerial action that must be adhered to at all times.  A decision for novel and unstructured problems or for complex or extremely important problems; deserves special attention of top management  No preexisting structure or decision- making procedure in place 5Remya Menon
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  Decision making process Clarifythe problem or opportunity Develop alternative courses of action Evaluate alternatives and select a course of action Implement the selected alternative course of action Monitor consequences of action Feedback 6Remya Menon
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  Implement the SelectedAlternative Course of Action Six steps of effective delegation  Clearly define the task  Provide guidelines to begin or follow  Delegate authority to accomplish the task  Monitor the tasks, but don’t hover  Provide feedback along the way  Reward and recognize efforts as well as results 7Remya Menon
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  Remya Menon 8 Influenceson Individual Decision Makers  The Importance of the Decision  Time Pressures  The Manager’s Values  The Manager’s Propensity for Risk
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  Remya Menon 9 GroupDecision Making In Organizations, a great deal of decision making is achieved through –  Committes,  Teams,  Task forces,  Other kind of groups  Virtual teams or  Employees linked electronically who may or may not have met in person
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  10Remya Menon Techniques forStimulating Creativity Brain storming The Delphi Technique The Nominal Group Technique Three techniques for stimulating creativity are:
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  Remya Menon 11 Techniquesfor Stimulating Creativity Brain storming  A technique for stimulating creativity by using a rigorous set of rules that promote the generation of ideas while avoiding the inhibitions that many people feel in group settings.  The basic rules are :  No idea is too ridiculous  Each idea presented belongs to the group  No idea can be criticized  Widely used in advertising
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  Remya Menon 12 Techniquesfor Stimulating Creativity The Delphi Technique  A technique for stimulating creativity that involves –  soliciting and comparing anonymous judgments  on the topic of interest  through a set of sequential questionnaires  that are interspersed with  summarized information  and feedback of opinions from earlier responses.
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  Remya Menon 13 Techniquesfor Stimulating Creativity  A technique for generating ideas that involves the anonymous contribution of ideas in a group setting.  A group of seven to ten individuals sit around a table but do not speak to one another.  Each person writes ideas on a pad of paper followed by a structured sharing of ideas.  Each person presents one idea.  Recorder writes ideas on a flip chart in full view of entire group.  The output of this phase is a list of ideas  Next phase is structured discussion of each ideas.  The next stage involves independent voting of ideas in which each participant, in private, selects priorities by ranking or voting.  The group decision is mathematically pooled outcome of the individual votes. The Nominal Group Technique
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  Remya Menon 14 InformationTechnology and Decision making Information technology represents the hardware, software, telecommunications, database management, and other technologies used to store data and make them available in the form of information for organizational decision making. Time Timeliness Currency Frequency Time Period Content Accuracy Relevance Completeness Conciseness Scope Performance Form Clarity Detail Order Presentation Media Characteristics of High-Quality Information
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  Remya Menon 15 Toolsfor warehousing and retrieving information Data warehousing The storage of pieces of knowledge, often in the form of stories, for easy access for those who have future need of it Data Mining The use of software to search through the warehouse of stored information for relevant bits. Data Mart A subset of a data warehouse that is easier for people to search for the data and information they need. Search engines Internet services that locate information on the World Wide Web using key words or phrases Software agents Software tools that will perform services for an individual on the World Wide Web
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  Remya Menon 16 Attributesof Useful Information Attribute Description Accessible Information can be obtained easily and quickly. Timely Information is available when needed. Relevant Managers need the information to make a particular decision. Accurate Information is error free. Verifiable Information is confirmed Complete All details needed are available Clear Information is stated in such a way that no facts are misunderstood.
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  Remya Menon 17