management decision making

MANAGEMENT DECISION MAKING

Koppula.chandrasekher

1st M.B.A-13491E0037

QIS COLLEGE OF Engineering & Technology

Venga mukala palem,ongole-523002,

Prakasam (Dt), A.P

E-Mail@[email protected]

CONTENTS

Interdiction

Types of decision making

Steps of Decision Making Process

Individual , Groups & Decision Making

Decision making tree

Principles of decision making

Characteristics of decision making

Factors involved in decision making Conclusion

WHAT IS DECISION MAKING

It is the process of recognizing a problem, generating an weighing alternatives, coming to a decision, taking action , and assessing the results

TYPES OF PROBLEMS

Crisis Problems Non Crisis Problems Opportunity Problems

TYPES OF DECISIONS & CONDITIONS OF DECISION MAKING

Types of Decisions Programmed Decisions Nonprogrammer Decisions

Conditions of Decision Making Certainty Risk Uncertainty Ambiguity

IMPORTANCE OF DECISION MAKING

Implementation of managerial functionPervasiveness of decision makingEvaluation of managerial performanceHelpful in planning and policies Selecting the best alternativessuccessful:;operating of business

Individual Decision Making

It is quite common that some decisions are taken by a managerindividually while some decisions are taken collectively by a group ofmanagers. Individual decisions are taken where the problem is of routinenature, whereas important and strategic decisions which have a bearingon many aspects of the organization are generally taken by a group..

Group decision making is preferred these days because it contributes for better coordination among the people concerned with the implementation of the decision.Decisions may also be further classified under major and minordecisions and simple and complex decisions. However, a detailed description of these types is not necessary because they are almost all similar to the already discussed programmed and non-programmed decisions in respect of importance and impact.

GROUPS AND DECISION MAKING

Decision making is often an individual activity but there are many times when groups become involved in the process.

Employee Participation in Decision Making Manager have a great deal of latitude when deciding to handle decision making alone or to

involve others in the process.

Group Decision – Making Formats

Interacting Group.

Nominal Groups.

Delphi Groups.

Impact of group Decision Making Group decision making has both benefits and limitation as compared with individual decision

making.

Benefits of Groups Decision When attacking a problem, group members are able to contribute more knowledge and

information than individuals.

ADVANTAGES AND DISADVANTAGES OF GROUP DECISION MAKING

Advantages

Groups can accumulate more knowledge and facts.

Groups may have a broader perspective and consider more approaches and alternatives.

Individuals who participate in group decision making are more likely to be satisfied with the decision and to support its implementation.

The group decision making process serves as an important communication devices.

Disadvantages

Groups tend to work more slowly and take more time to reach any decision.

To much dependence on group decision making may limit a manager’s ability to act quickly and decisively when necessary.

Groups may be dominated by one individual or a small sub group.

Group effort frequently result in compromises that may not be optimal for organizational effectiveness or performance.

PRINCIPLES OF DECISION MAKINGPurpose-driven

Educational

voluntary

Self design

Flexible

Respectable

Accountable

Time limited and

achievable

CHARACTERISTICS Decision making is a continuous process

It involves a choice and therefore presupposes the existence of alternatives

Decision making is always purposive in that decisions should aim at achieving some purposes

It is an intellectual process supported by sound-reasoning andjudgment

Decision-making is all pervasive in the sense that all levelsof managers take decisions, though at the impact and scope ofdecisions vary.

TOOLS FOR EFFECTIVE GROUP DECISION MAKING

Brain Storming

An informal interactive group technique in which members generate many alternatives with out passing judgment on their value.

Devil’s Advocate

A technique in which one or more group members deliberately challenge the group’s view to the problem, the alternatives, and their evaluation.

Dialectic process

A technique in which individuals or groups present and defend opposing solution to a particular problem to drive an improved solution.

FACTORS INVOLVED IN DECISION MAKING

Risk analysisAttitude towards riskPreference theory

Conclusion

If you have any queries and suggestions?

please send to my Mail ID

Mail –id :[email protected]