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1
COMMENTS USERS FILES
PAGE VIEWS CLICKS REVENUE
2014 2015 2016 2017 2018 2019
100,000 100,000 100,000
$100,000.00
DECISION MAKING
2
ACTIVITY: LOST IN THE SEA (Who will
survive?)
Situation: Pretend you are in a
shipwrecked and stranded in a lifeboat.
Given are the things you can carry if you
will be landing in an island
1. Mosquito net
2. Fishing rod
3. Shaving mirror
4.Rope
5.Chocolate bars
6. Water container
7. Can of petrol
8. Bottle of rum
9. Radio
10. Sea chart
2
DECIDE five things out of the
list which you are going to take
with you . Make a list in the
order of your preference. Write
your answer on a coupon bond.
After all had decided the
choices… I will show you the
weight of each things. Write
the weight of your selected
things opposite them then sum
it up. It will be your score.
3
Your score:
1 Shaving mirror. (One of your most powerful tools, because you can use it to
signal your location by reflecting the sun.
10
2 Can of petrol. (Again, potentially vital for signalling as petrol floats on water and
can be lit by your matches.)
9
3 Water container. (Essential for collecting water to restore your lost fluids.) 8
4 Chocolate bars. (A handy food supply.) 7
5 Fishing rod. (Potentially useful, but there is no guarantee that you're able to
catch fish. Could also feasibly double as a tent pole.)
6
6 Rope. (Handy for tying equipment together, but not necessarily vital for
survival.)
5
7 Bottle of rum. (Could be useful as an antiseptic for treating injuries, 4
8 Radio. (Chances are that you're out of range of any signal, anyway.) 3
9 Sea chart. (Worthless without navigational equipment.) 2
10 Mosquito net. 1
3
4
“Trewatha & Newport defines decision making process as :
Decision-making involves the selection of a course of action
from among two or more possible alternatives in order to arrive
at a solution for a given problem”.
Decision making process can be regarded as check and
balance system that keeps the organisation growing both in
vertical and linear directions
Oxford Advanced Learner’s Dictionary defines the term decision
making as the process of deciding about something important,
especially in a group of people or in an organization.
5
DATA
INFORMATION
In an organizational context, it is worthwhile to note that decision making
needs the right kind of information, the complete information and the ability
to synthesize and make sense of the information
“asymmetries ”
of
6
The overriding rule in decision
making is that the decision
maker ought to have
legitimacy and authority over
the people who he or she is
deciding upon. In other words,
decision makers succeed only
when their decisions are
honored and followed by the
people or groups that the
decision impacts.
7
STEPS IN DECISION MAKING
DEFINING
THE
PROBLEM
DEVELOPING
AND
WEIGHING
OPTION
CHOOSING
BEST
POSSIBLE
OPTION.
PLAN AND
EXECUTE
GATHERING
INFORMATION
AND
COLLECTING
DATA
TAKE
FOLLOW
UP ACTION
8
TYPES OF DECISIONS
STRATEGIC DECISIONS
Made by committees of upper
level administrators (school
superintendents,, college
presidents) and important long-
term implications for the
organization. Reflects a
consistent pattern for directing
the organization according to its
philosophy , vision and mission.
Example, growing an enrolment
at a specific annual rate
NON PROGRAMMED DECISIONS
No established procedure for
handling the problem, either
because it involves issues
that have never been
encountered before or
because it is complex or
extremely important.
Example: construction of new
school facilities
PROGRAMMED DECISIONS
Trigger solutions that have already been determined by past
experiences as appropriate for the problem in question
Example: maintaining a necessary grade point average for
academic standing
9
RATIONAL MODEL OF DECISION MAKING
IDENTIFYING THE PROBLEM
FOUR STEPS IN PROBLEM IDENTIFICATION:
1. Measure results
2. Compare results to objectives
3. Determine the significance of the difference
4. Communicate threshold differences to
administration.
GENERATING ALTERNATIVES
All possible alternatives should be included no
matter how ridiculous they may first appear and
choice may be made later The administrator
should seek information regarding each alternative
and its various consequences
EVALUATING ALTERNATIVES
A. Evaluate the value of each alternative,
positive or negative
B. Certainty exists
C. Risks exists
CHOOSE ALTERNATIVES
1. Good alternative
2. Bland alternative
3. Mixed alternative
4. Poor alternative
5. Uncertain alternative
IMPLEMENTING DECISION
Decision maker already considered all
conceivable problems that may be
associated with the implementation of
the decision
EVALUATING DECISION
• Determine extent to which the
solution achieved the objectives.
• Measuring actual performance
against target objectives
1
2
3
4
5
6
10
.
BOUNDED RATIONALITY MODEL
Frequently school administrators are
not aware that problems exist. Even
when they are, they do not
systematically search for all possible
alternative solutions.
Describe the perspective of the
decision maker who would like to
make the best decision but normally
settles for less than the optimal
They are limited by TIME
CONSTRAINTS, COST, and
the ABILITY TO PROCESS
INFORMATION
They generate a partial list of
alternative solutions to the
problem based on EXPERIENCE,
INTUITION. ADVICE FROM
OTHERS AND CREATIVE
THOUGHTS
HERBERT SIMON coined the
term BOUNDED
RATIONALITY MODEL also
referred to as
ADMINISTRATIVE MODEL
11
BOUNDED RATIONALITY MODEL
Decisions will always be based on an
incomplete and inadequate
comprehension of the true nature
of the problem being faced
Decision makers will never
succeed in generating all
positive alternative solutions
for consideration
Alternatives are always
evaluated incompletely
because it is impossible to
predict accurately all
consequences associated with
each alternative
The ultimate decision
regarding which alternative to
choose must be based on
some criterion other than
maximization or optimization
because it is impossible to
determine which alternative
is optimal
Conflicting goals of
different stakeholders
can restrict decisions,
forcing a compromising
solution
1
2
3
4
5
12
GROUP
Share the problem with your subordinates as a group. Together
you generate and evaluate alternatives and attempt to reach
agreement o a solution.
AUTOCRATIC I
Solve the problem or make the
decision yourself using the
information available at the
present time.
AUTOCRATIC II
Obtain necessary information from
subordinates then decides on a
solution to the problem yourself.
They do not play a role in definition
or generating alternative solutions
CONSULTATIVE I
Share the problem with relevant
subordinates individually getting
their ideas and suggestions, then
make the decision yourself. Decision
may or may not reflect subordinate’s
influence
CONSULTATIVE II
Share the problem with subordinates in
a group meeting, obtain ideas and
suggestions , make decisions which may
or may not reflect subordinates
influence
VROOM-YETTON MODEL- FIVE
DECISION MAKING STYLES
13
GROUP DECISION MAKING TECHNIQUE
NOMINAL GROUP TECHNIQUE
DEVIL’S ADVOCACY
BRAINSTORMING
DELPHI TECHNIQUE
Generating ideas and alternative solutions but does
not evaluate..
Concerned with generation of ideas and evaluation
done in a structured manner
Relies completely on a nominal group who does not engage face-to
face discussions. Inputs are solicited by mails allowing a poll of large
numbers of experts
Antidote for groupthink, used as critiquing technique after an alternative
solutions to a problem have been developed
14
Refers to the extent
to which the
decision is effective.
Achieved through a
participatory
decision -making
style than from an
autocratics style..
QUALITY
Refers to the extent to which
decisions are accepted by the
subordinates who must
implement them. Subordinates
involvement in decision making
is advantageous for promoting
acceptance and better quality
decisions
ACCEPTANCE
Refers to the amount of tie
available to the decision
maker to arrive at a
decision. Participatory
decision making is costly in
terms of time-suited for
long term development.
Urgency needs a more
autocratic style
TIMELINESS
15
DECISION EXERCISE (Assignment)
You are the principal of a small rural high school and it is one, week away from the
beginning of the district basketball tournament. The basketball team has a record of
5-0 for the season and is the favorite for championship. You have just caught the
star player of the basketball team, an all state candidate, drinking an alcoholic
beverage at a local restaurant. This is the player’s second offense. According to the
board of education policy, a second offense carries a penalty of a four-week
suspension from the team. The policy has not been consistently enforced by the
various athletic coaches.
Based on the situation, as the school administrator, what will you decide?
1. What type of decision making will you use?
2. Illustrate/explain the steps that you will undertake.
3. Conclude on the effectiveness of your decision
15

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Decision_making(3).pptx

  • 1. 1 COMMENTS USERS FILES PAGE VIEWS CLICKS REVENUE 2014 2015 2016 2017 2018 2019 100,000 100,000 100,000 $100,000.00 DECISION MAKING
  • 2. 2 ACTIVITY: LOST IN THE SEA (Who will survive?) Situation: Pretend you are in a shipwrecked and stranded in a lifeboat. Given are the things you can carry if you will be landing in an island 1. Mosquito net 2. Fishing rod 3. Shaving mirror 4.Rope 5.Chocolate bars 6. Water container 7. Can of petrol 8. Bottle of rum 9. Radio 10. Sea chart 2 DECIDE five things out of the list which you are going to take with you . Make a list in the order of your preference. Write your answer on a coupon bond. After all had decided the choices… I will show you the weight of each things. Write the weight of your selected things opposite them then sum it up. It will be your score.
  • 3. 3 Your score: 1 Shaving mirror. (One of your most powerful tools, because you can use it to signal your location by reflecting the sun. 10 2 Can of petrol. (Again, potentially vital for signalling as petrol floats on water and can be lit by your matches.) 9 3 Water container. (Essential for collecting water to restore your lost fluids.) 8 4 Chocolate bars. (A handy food supply.) 7 5 Fishing rod. (Potentially useful, but there is no guarantee that you're able to catch fish. Could also feasibly double as a tent pole.) 6 6 Rope. (Handy for tying equipment together, but not necessarily vital for survival.) 5 7 Bottle of rum. (Could be useful as an antiseptic for treating injuries, 4 8 Radio. (Chances are that you're out of range of any signal, anyway.) 3 9 Sea chart. (Worthless without navigational equipment.) 2 10 Mosquito net. 1 3
  • 4. 4 “Trewatha & Newport defines decision making process as : Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem”. Decision making process can be regarded as check and balance system that keeps the organisation growing both in vertical and linear directions Oxford Advanced Learner’s Dictionary defines the term decision making as the process of deciding about something important, especially in a group of people or in an organization.
  • 5. 5 DATA INFORMATION In an organizational context, it is worthwhile to note that decision making needs the right kind of information, the complete information and the ability to synthesize and make sense of the information “asymmetries ” of
  • 6. 6 The overriding rule in decision making is that the decision maker ought to have legitimacy and authority over the people who he or she is deciding upon. In other words, decision makers succeed only when their decisions are honored and followed by the people or groups that the decision impacts.
  • 7. 7 STEPS IN DECISION MAKING DEFINING THE PROBLEM DEVELOPING AND WEIGHING OPTION CHOOSING BEST POSSIBLE OPTION. PLAN AND EXECUTE GATHERING INFORMATION AND COLLECTING DATA TAKE FOLLOW UP ACTION
  • 8. 8 TYPES OF DECISIONS STRATEGIC DECISIONS Made by committees of upper level administrators (school superintendents,, college presidents) and important long- term implications for the organization. Reflects a consistent pattern for directing the organization according to its philosophy , vision and mission. Example, growing an enrolment at a specific annual rate NON PROGRAMMED DECISIONS No established procedure for handling the problem, either because it involves issues that have never been encountered before or because it is complex or extremely important. Example: construction of new school facilities PROGRAMMED DECISIONS Trigger solutions that have already been determined by past experiences as appropriate for the problem in question Example: maintaining a necessary grade point average for academic standing
  • 9. 9 RATIONAL MODEL OF DECISION MAKING IDENTIFYING THE PROBLEM FOUR STEPS IN PROBLEM IDENTIFICATION: 1. Measure results 2. Compare results to objectives 3. Determine the significance of the difference 4. Communicate threshold differences to administration. GENERATING ALTERNATIVES All possible alternatives should be included no matter how ridiculous they may first appear and choice may be made later The administrator should seek information regarding each alternative and its various consequences EVALUATING ALTERNATIVES A. Evaluate the value of each alternative, positive or negative B. Certainty exists C. Risks exists CHOOSE ALTERNATIVES 1. Good alternative 2. Bland alternative 3. Mixed alternative 4. Poor alternative 5. Uncertain alternative IMPLEMENTING DECISION Decision maker already considered all conceivable problems that may be associated with the implementation of the decision EVALUATING DECISION • Determine extent to which the solution achieved the objectives. • Measuring actual performance against target objectives 1 2 3 4 5 6
  • 10. 10 . BOUNDED RATIONALITY MODEL Frequently school administrators are not aware that problems exist. Even when they are, they do not systematically search for all possible alternative solutions. Describe the perspective of the decision maker who would like to make the best decision but normally settles for less than the optimal They are limited by TIME CONSTRAINTS, COST, and the ABILITY TO PROCESS INFORMATION They generate a partial list of alternative solutions to the problem based on EXPERIENCE, INTUITION. ADVICE FROM OTHERS AND CREATIVE THOUGHTS HERBERT SIMON coined the term BOUNDED RATIONALITY MODEL also referred to as ADMINISTRATIVE MODEL
  • 11. 11 BOUNDED RATIONALITY MODEL Decisions will always be based on an incomplete and inadequate comprehension of the true nature of the problem being faced Decision makers will never succeed in generating all positive alternative solutions for consideration Alternatives are always evaluated incompletely because it is impossible to predict accurately all consequences associated with each alternative The ultimate decision regarding which alternative to choose must be based on some criterion other than maximization or optimization because it is impossible to determine which alternative is optimal Conflicting goals of different stakeholders can restrict decisions, forcing a compromising solution 1 2 3 4 5
  • 12. 12 GROUP Share the problem with your subordinates as a group. Together you generate and evaluate alternatives and attempt to reach agreement o a solution. AUTOCRATIC I Solve the problem or make the decision yourself using the information available at the present time. AUTOCRATIC II Obtain necessary information from subordinates then decides on a solution to the problem yourself. They do not play a role in definition or generating alternative solutions CONSULTATIVE I Share the problem with relevant subordinates individually getting their ideas and suggestions, then make the decision yourself. Decision may or may not reflect subordinate’s influence CONSULTATIVE II Share the problem with subordinates in a group meeting, obtain ideas and suggestions , make decisions which may or may not reflect subordinates influence VROOM-YETTON MODEL- FIVE DECISION MAKING STYLES
  • 13. 13 GROUP DECISION MAKING TECHNIQUE NOMINAL GROUP TECHNIQUE DEVIL’S ADVOCACY BRAINSTORMING DELPHI TECHNIQUE Generating ideas and alternative solutions but does not evaluate.. Concerned with generation of ideas and evaluation done in a structured manner Relies completely on a nominal group who does not engage face-to face discussions. Inputs are solicited by mails allowing a poll of large numbers of experts Antidote for groupthink, used as critiquing technique after an alternative solutions to a problem have been developed
  • 14. 14 Refers to the extent to which the decision is effective. Achieved through a participatory decision -making style than from an autocratics style.. QUALITY Refers to the extent to which decisions are accepted by the subordinates who must implement them. Subordinates involvement in decision making is advantageous for promoting acceptance and better quality decisions ACCEPTANCE Refers to the amount of tie available to the decision maker to arrive at a decision. Participatory decision making is costly in terms of time-suited for long term development. Urgency needs a more autocratic style TIMELINESS
  • 15. 15 DECISION EXERCISE (Assignment) You are the principal of a small rural high school and it is one, week away from the beginning of the district basketball tournament. The basketball team has a record of 5-0 for the season and is the favorite for championship. You have just caught the star player of the basketball team, an all state candidate, drinking an alcoholic beverage at a local restaurant. This is the player’s second offense. According to the board of education policy, a second offense carries a penalty of a four-week suspension from the team. The policy has not been consistently enforced by the various athletic coaches. Based on the situation, as the school administrator, what will you decide? 1. What type of decision making will you use? 2. Illustrate/explain the steps that you will undertake. 3. Conclude on the effectiveness of your decision 15