Short presentation on Decision making. Decision making variables, Types of managerial decision, Decision making process and Techniques for Stimulating Creativity

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2. What is decision??
 A conscious choice among
alternatives followed by action to
implement the choice
 Decision without action is
meaningless
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3. Decision Making
Decision making involves –
 Complex mix of knowledge
 Experience
 Creative thinking
 Risk taking
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4. Decision
Making
Knowledge
Emotion
Reason
Individual
factors
Imagination
Uncertainty
Risk
Group
factors
Decision making variables
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5. Types of Managerial Decisions
Programmed DecisionsNonprogrammed Decisions  Response to repetitive and routine
problems, which is handled by a
standard procedure that has been
developed by management.
 Policies are laid down to handle such
situations
 “Policy” are the guidelines for
managerial action that must be
adhered to at all times.
 A decision for novel and unstructured
problems or for complex or extremely
important problems; deserves special
attention of top management
 No preexisting structure or decision-
making procedure in place
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6. Decision making process
Clarify the
problem or
opportunity
Develop
alternative
courses of
action
Evaluate
alternatives
and select a
course of
action
Implement
the selected
alternative
course of
action
Monitor
consequences
of action
Feedback
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7. Implement the Selected Alternative Course of Action
Six steps of effective delegation
 Clearly define the task
 Provide guidelines to begin or follow
 Delegate authority to accomplish the task
 Monitor the tasks, but don’t hover
 Provide feedback along the way
 Reward and recognize efforts as well as
results
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Influences on Individual Decision Makers
 The Importance of the Decision
 Time Pressures
 The Manager’s Values
 The Manager’s Propensity for Risk

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Group Decision Making
In Organizations, a great deal of decision making is achieved through –
 Committes,
 Teams,
 Task forces,
 Other kind of groups
 Virtual teams or
 Employees linked electronically who may or may not have met in person

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Techniques for Stimulating Creativity
Brain storming
The Delphi Technique
The Nominal Group
Technique
Three techniques for stimulating creativity are:

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Techniques for Stimulating Creativity
Brain storming
 A technique for stimulating creativity by using a
rigorous set of rules that promote the
generation of ideas while avoiding the
inhibitions that many people feel in group
settings.
 The basic rules are :
 No idea is too ridiculous
 Each idea presented belongs to the group
 No idea can be criticized
 Widely used in advertising

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Techniques for Stimulating Creativity
The Delphi Technique
 A technique for stimulating creativity that
involves –
 soliciting and comparing anonymous
judgments
 on the topic of interest
 through a set of sequential
questionnaires
 that are interspersed with
 summarized information
 and feedback of opinions from earlier
responses.

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Techniques for Stimulating Creativity
 A technique for generating ideas that involves the
anonymous contribution of ideas in a group
setting.
 A group of seven to ten individuals sit around a table but
do not speak to one another.
 Each person writes ideas on a pad of paper followed by a
structured sharing of ideas.
 Each person presents one idea.
 Recorder writes ideas on a flip chart in full view of entire
group.
 The output of this phase is a list of ideas
 Next phase is structured discussion of each ideas.
 The next stage involves independent voting of ideas in
which each participant, in private, selects priorities by
ranking or voting.
 The group decision is mathematically pooled outcome of
the individual votes.
The Nominal Group
Technique

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Information Technology and Decision making
Information technology represents
the hardware, software,
telecommunications, database
management, and other
technologies used to store data and
make them available in the form of
information for organizational
decision making.
Time
Timeliness
Currency
Frequency
Time Period
Content
Accuracy
Relevance
Completeness
Conciseness
Scope
Performance
Form
Clarity
Detail
Order
Presentation
Media
Characteristics of High-Quality
Information

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Tools for warehousing and retrieving information
Data warehousing
The storage of pieces of knowledge, often in the form of stories, for easy access for those
who have future need of it
Data Mining
The use of software to search through the warehouse of stored information for relevant
bits.
Data Mart
A subset of a data warehouse that is easier for people to search for the data and
information they need.
Search engines
Internet services that locate information on the World Wide Web using key words or
phrases
Software agents
Software tools that will perform services for an individual on the World Wide Web

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Attributes of Useful Information
Attribute Description
Accessible Information can be obtained easily and quickly.
Timely Information is available when needed.
Relevant
Managers need the information to make a particular
decision.
Accurate Information is error free.
Verifiable Information is confirmed
Complete All details needed are available
Clear
Information is stated in such a way that no facts are
misunderstood.

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