Aim To Acquaint The Students With Steps Involved In Decision Making Process & Factors Influencing Decision Making
Group Members Fawad Hussain Rao Qaiser Rizwan Shaukat Naveed ur Rehman
Sequence Introduction Part – 1 Fundamentals of Decision Making : Fawad Hussain Part – 2 Managerial Decision Making: Rao Qaiser Part – 3 Rational Decision Making : Rao Qaiser Part – 3 Effective Decision Making : Naveed ur Rehman Part – 4 Groups and Decision Making : Rizwan Shaukat Conclusion Questions
Steps In Rational Decision Making Process (6) Evaluate (1) Identify The The Results Problem and Provide Feed Back (5) Implement The (2) Generate Decision Alternatives (4) Make The (3) Evaluate Decision Alternatives
MORE EFFECTIVE DECISION MAKING Barriers to effective decision making. Behavioral tools for effective decision making. Quantitative tools for effective decision making.
BARRIER TO EFFECTIVE DECISION MAKING Barriers are the imperfect or incomplete information, inaccurate identification of problems or alternatives, biases and over commitment or under commitment
IMPERFECT OR INCOMPLETE INFORMATION. Imperfect or incomplete information is to withholding information or misinforming others. INACCURATE IDENTIFICATION OF PROBLEM OR ALTERNATIVES. It means When we ask wrong question we cant get the right answer.
BIASES. In decision making bias refers to situations in which decision- making short cuts are inappropriately applied. OVER COMMITMENT OR UNDER COMMITMENT. It means exhibiting no rational escalation of commitment.
BEHAVIORAL TOOLS FOR EFFECTIVE DECISION MAKING Behavioral tools are the ways in which a person behaves in a situation. these tools are:- Decision timing. Realistic decision constraints. Critical thinking. Experience and expertise. Intuition .
BEHAVIORAL TOOLS Decision Timing. It is the time when the decision is to be made by comparing the benefits and the risks. Realistic Decision Constraints. By understanding constraints one can more realistically select an appropriate and acceptable solution. Critical Thinking Skills. To improve decision making is to develop critical thinking which help us think clearly, logically and analytically about the problems we face.
BEHAVIORAL TOOLS Experience and Expertise With decision making experience comes the ability to make decisions faster managers also need to develop their expertise in decision making so that they can recognize the key elements in each problem Intuition It is the ability to understand something immediately without the need for conscious reasoning. We should be intuitive in decision making.
QUANTITATIVE TOOLS FOR EFFECTIVE DECISION MAKING Quantitative tools are especially valuable when planning production, analyzing inventory levels and considering major budget expenditure. These tools are :- Payoff matrix Decision tree Simulation model
QUANTITATIVE TOOLS PAYOF MATRIX A tool that compare probable outcome of two or more alternatives. DECISION TREE An analytical tool that graphically portrays the logical series of actions and decisions in a problem situation. SIMULATION MODEL A mathematical representation of problems that reflect the relationship between the elements and it is used to project that result of certain actions under various circumstances.
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 Disadvantages Groups can accumulate more knowledge and Groups tend to work more slowly and take facts. more time to reach any decision. Groups may have a broader perspective and To much dependence on group decision making consider more approaches and alternatives. may limit a manager’s ability to act quickly and decisively when necessary. Individuals who participate in group decision making are more likely to be satisfied with the Groups may be dominated by one individual or decision and to support its implementation. a small sub group. The group decision making process serves as Group effort frequently result in compromises an important communication devices. that may not be optimal for organizational effectiveness or performance.
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.