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Decision making in the business field

Decision making in the business field

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    Decision making Decision making Presentation Transcript

    • Decision Making PRESENTED BY: M.MUHAMEDH ASLAM M.RAJESH KUMAR A.SYED IBRAHIM J.THANGARAJ A.VEERABATHRAN
    • Decision Making  Decision making is an essential leadership skill. If you can learn how to make timely, well-considered decisions, then you can lead your team to well-deserved success.  ―A Manager by profession is a decision maker, Uncertainty is his opponent , overcoming it is his mission.’’
    • Decision Making  Decision making is not easy It must be done amid ever-changing factors unclear information conflicting point of view
    • Decisions and Decision Making  Decision = Choice made from available alternatives  Decision Making = Process of identifying problems and opportunities and resolving them
    • Types of Decision making  Programmed Decisions (routine, almost automatic process)  Situations occurred often enough to enable decision rules to be developed and applied in the future (There are rules or guidelines to follow)  Made in response to recurring organizational problems (managers have made decision may times before) Example: deciding to reorder office supplies
    • Non Programmed Decisions  Non-programmed Decisions – (Unusual situations that have not been often addressed)  No rules to follow, since the decision is new  These decisions are made based on information, and a managers intuition and judgment Example: should the firm invest in a new technology?
    • Major Decisions  Some decision are considerably more important than others  Degree of Futurity of decisions A decision which has long range impact Major Decision eg: like replacement of men by machinery Major Decision  Impact of the decision on other functional areas When it affects all functional area major decision
    • Minor Decisions  Impact of the decision on one functional area If the Decision Affects Only one Functional Area It is a Minor Decision  Recurrence of Decision Whether Or Not to renew the Office subscription such as ―Bussiness week‖ Become Minor Decision
    • Routine Decision  Routine Decision are those which are supportive of ,rather than central to the company’s operations  Eg: Provision for AC better lighting,parking facilities,cafeteria etc are all Routine decision
    • Strategic Decision  Strategic Decision require lengthy deliberation and large funds and are taken by managers at high levels  On the other hand lowering the price of the product,changing the product line,installing of an automatic plant etc are all strategic decision
    • Individual and Group Decision  Decision may be taken either Individual or by a Group  Individual decision taken majorly when problem is on routine nature  Important and strategic decision which may result in some change in organization are generally taken by group
    • Advantage & Disadvantage Of Group Decision  Advantage  Increased acceptance by those affected  Easier Communication  Easier coordination  Disadvantage  Group decision take longer  Group can compromise  Group can be dominated  Group can be indecisive
    • Decision Making Cycle Define the problem Make a Choice Analyse the consequence Clarify Your Objective Identify Alternatives
    • The Decision Making Process  Define the Problem  Clarify your objectives  Identify alternatives  Analyze the consequences  Make a choice
    • Step 1. Define the Problem 1. Start by writing down your initial assessment of the problem. 2. Dissect the problem.  What triggered this problem (as I’ve assessed it)?  Why am I even thinking about solving this problem?  What is the connection between the trigger and the problem?
    • Step 2. Clarify Your Objectives 1. Write down all the concerns you hope to address through your decision. 2. Convert your concerns into specific, concrete objectives. 3. Separate ends from means to establish your fundamental objectives. 4. Clarify what you mean by each objective. 5. Test your objectives to see if they capture your interests.
    • Step 3. Identify Alternatives 1. Generate as many alternatives as you can yourself. 2. Expand your search, by checking with other people, including experts. 3. Look at each of your objectives and ask, ―how?‖ 4. Know when to stop.
    • Step 4. Analyze the Consequences Mentally put yourself into the future. 1.  Process Analysis  Solving problems by thinking through the process involved from beginning to end, imagining, at each step, what actually would happen. 2. Eliminate any clearly inferior alternatives. 3. Organize your remaining alternatives into a table (matrix) that provides a concise, bird's-eye view of the consequences of pursuing each alternative.
    • Step 5. Make a Choice  Analyses are useless unless the right choice is made.  Under perfect conditions, simply review the consequences of each alternative, and choose the alternative that maximizes benefits.  In practice, making a decision—even a relatively simple one like choosing a computer—usually can’t be done so accurately or rationally.
    • Infosys inducts key Decision making group  Infosys has promoted three senior employees to a key decision-making council, thereby also providing the first glimpses of the people who will be implementing the turnaround strategy devised by chairman NR Narayana Murthy.  They heads the "cost optimisation" initiative and "new global delivery model" that information technology services companies rely on to have work carried out both at clients' locations and in India.
    • Conclusion All decision-making involves elements of risk and reward. For every decision there are risks. Many organisations are structured so that major decisions are taken at the highest levels. This is because decisions at the top can have major effects for the whole organization.