A manager has to make many decisions as part of their role. Effective decision making involves following a process of identifying the problem, setting decision criteria, weighing alternatives, analyzing options, selecting a choice, and implementing it. There are different types of decision making models a manager may use including rational, bounded rational, and intuitive decision making. Managers make decisions across an organization's key functions like planning, organizing, leading, and controlling. Decisions can be programmed, which are routine, or non-programmed, which require custom solutions. Managers also have to make choices under varying conditions of certainty, risk, and uncertainty with incomplete information. They can employ either linear or non-linear thinking styles when evaluating alternatives and arriving at a
1. Summery of Manager as a Decision Maker
After completing this summery we able to make a good decision in our practical life
.Decision making is a choice from many alternatives.
Lets we start with a general exemplify we are confused for purchasing any thing from the
market then if we follow these steps then our decision for parching this thing will be
effective. The step are given (Problem) For example I have a problem for a cell phone now I
wane purchase it,(Decision criteria)then I decide the decision criteria about cell phone that
what’s the maximum feature that I want (Allocate weights)after this I decide important
feature and give the weights or numbering one by one(Developing alternatives)then I develop
all the alternatives about cell phones in the market and wrote it in sequence(Analyze)after that
I will compare all the alternative and see the feature of all(Selection)finally I decide the cell
phone which has good and extra features from others(Implement)now it will implement for
my final selection
Now we see that in an organization, how a manager can make decesion.Firstly we have a
decision making model. In rational decision making the problem is clear and unambiguous,
and and signal well defined goal is to be achieved, all the alternatives are known and final
chaise will maximise.In bounded rational decision we can say that manager make rational
decision but they bound or limited to there abilities. this decision is may be on risk. Intuitive
decision making means making decision on the basis of experience, feelings and judgment.
In organization it is very important to make decision in management four function for
example we think about planning function in this function we make decision about objectives
and forecasting strategies of the organization, and in organizing function we decide about
departmentalization and staff positioning, then in leading function we make decision that
what strategies are best for employees motivation, and in controlling process we make decide
that how we control overall and what decision is to be make in this situation.
There are types of problems in decision making, first one is Programmed decision are
repetitive decisions that can be handled by routine approach and are used when the problem
being resolved is straightforward clear and easily defined these types of problems also called
structured problems, and second is non proggramed decisions are unique decisions that
require a custom made solution and are used when the problems are new and unusual these
are called unstructured problems.
2. Now there are three types of conditions on which basis a manager can make a decision,
Certainty is a situation in a manager can make easily decision because all information’s are
easily available, and Risk is a situation in which a manager can estimate the likelihood of
certain outcomes, Uncertainty is a situation in which a manager is not known about the
information but he also make decision this type of decision making condition is very danger.
Linear and non linear are the decision making styles, the linear style is characterized by a
persons preference for using external data and prospecting this information through rational,
logical thinking. The non linear thinking style is characterized by a preference for internal
sources of information’s and prospecting this information with internal insight and feelings.
The 12 common errors and biases which are include overconfidence, immediate
gratification,anchoring,selective perceptions,confirmation,framing,availability,representation,
randomness, sunk coats, self serving bailsman hindsight