Decision making


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Decision making

  1. 1. 1Decision Making and Control• Decision Making• How to Make GoodDecisions• Problem Solving• Building DecisionMaking Skills• Controlling
  2. 2. 2Elements in Managerial Decisions• Decision: A conscious choiceamong alternative coursesof action.• Therefore the 3 elementsare:– A conscious choice amongalternatives– A specific purpose– A course of action
  3. 3. 3Approaches to Decision Making• Rational (LogicalApproach)• Intuitive Approach• Unable to decide(Indecisive Approach)• Impulsive Approach
  4. 4. 4Kinds of Decisions a Supervisor Makes• Routine data baseddecisions• Serious decisions havingimportant consequences• Emergency decisionsrequiring distinctiveness• Problem- Solving• Decisions beyond yourauthority* It is essential to recognize which decisions need to be made now and are mostimportant
  5. 5. 5A Simple Version of Decision Making(The Logical Approach)• Define the problem (conditionsand limitations) and the set ofobjectives• Analyze the problem: fact finding• Develop alternative solutions:brainstorming• Decide on the best solution• Convert the decision into action• Follow up
  6. 6. 6Pattern of Problem Solving• Describe the problem• Search out the cause, getthe facts• Define the real problemand set objectives• Develop alternativesolutions• Decide on the best solution• Implement the decision• Follow up
  7. 7. 7Participative Problem Solving• Argument for Group Decision Making :– You get more info. And expertise relevant tothe decision– You get more good ideas and can generatemore and better alternatives– People thinking together can arrive at betterdecisions because of the stimulation andinterplay of different points of view– Participants are more committed to carryingout– Coordination and communication are simplerand better because everyone understands
  8. 8. 8Participative Problem Solving• Criticism of group decisionmaking:– It takes longer in a group– There is usually a dominator in agroup– Group participants get involved inwinning arguments and showingoff– If consensus is required peoplemay conform to get the meetingover– Consensus leads to mediocredecisions
  9. 9. 9Group Decision Making Works Best When:• Members are accustom toworking together as a teamand having differing expertiseand point of view but commongoals• The leader is skillful at keepingthe meeting on target• The group is rewarded formaking good decisions
  10. 10. 10Solving Peoples Problems• Personal problems are notyours to resolve butLISTENING can help.• Keep your own emotionsout of it.• Try to identify the realproblem.• If possible eliminate friction(ex. Food Expeditor).
  11. 11. 11Win-Win Problem Solving• Win-Lose: You win, worker loses• Lose-Win: You lose, worker wins(retreat and appeasement, nostand)• Lose-Lose: The compromise• Win-Win problem solving meansyou find a decision that satisfiesboth of you.– Include worker from thebeginning: From defining theproblem to carrying out anagreement
  12. 12. 12Guidelines for Building Decision MakingSkills• Be sure of your authority formaking decisions• Accept responsibility fully• Distinguish whats important• Make the decision at the time it isneeded• Be alert to signs of problemsneeding solutions• Keep an open mind
  13. 13. 13Guidelines for Building Decision MakingSkills• Don’t solicit advise but doconsult your supervisor when aproblem is beyond your abilityto solve• Make sure that you are notpart of the problem• Learn from your mistakes• Evaluate your decisions whencarried out
  14. 14. 14Controlling• Controlling: process by whichsupervisors measure, evaluate, andcompare results to goals, and standardspreviously agreed upon, and takecorrective action when nessicary.• Major area is COST.• Productivity: efficiency which whichinputs are converted into outputs.• Productivity standards: definedacceptable quantity of work expected.• Use control techniques.
  15. 15. 15Controlling Techniques• Require records and reports• Develop and enforce performancestandards• Develop and enforce productivitystandards Develop and enforcedepartmental policies and procedures• Observe and correct employee actions• Train and retrain employees• Discipline when appropriate• Be a good role model