Decision making

A decision is a choice made from available alternatives.

Thus decision making is the process of identifying problems and opportunities and then resolving them.

Decision making involves effort both before and after the actual choice.

Leads to good decision making

• Programmed Decision-

It involve situations that have occurred often enough to enable decision rules to be developed and applied in future.

• Non-Programmed Decisions-

These decisions are made in response to the situations that are poorly defined, unique, largely unstructured and have important consequences for organization.

Creativity-

It refers to the phenomenon whereby a person creates something new that has some kind of value.

Innovation-

It refers to the creation of better or more effective products, processes, technologies or ideas. In simple words innovation is “ thinking out of the box”.

• Directive - It is used by the people who prefer simple, clear cut solutions to problems.

• Analytical- Managers with an analytical style like to consider complex solutions based on as much data as they can gather.

• Conceptual- It is used by the people who like to consider a broad amount of information. Managers using conceptual style rely on information from both people and systems.

• Behavioral- It is the style adopted by managers having a deep concern for others as individuals. People with behavioral style may make decisions that help others achieve their goals.

“Group decision making is a situation faced when people think or are bought together to solve problems in the anticipation that are ore

effective than individuals.”

Advantages Disadvantages

Make more accurate decisions

Provides more complete information

Generates more alternative

Increase acceptance of solution

Time consuming and less efficient

Can result in minority domination that influence

decision process

Can create ambiguous responsibility for outcome of decision

• Brainstorming- Brainstorming uses a face to face interactive group to spontaneously suggest a wide range of alternatives for decision making.

• Nominal Group Technique- This is a decision making method for use among groups of many sizes, who want to make decision quickly , as by a vote, but want everyone’s opinion taken into account.

• Electronic Brainstorming- It brings people together in an interactive group over a computer network