Decision making is the central management activity, but its importance cannot be ascertained without pointing out the differences which individual managers face in making decisions.
All management decisions are not the same.
We know that, in practice, those occupying different positions within the organization and therefore performing a different set of management tasks, are confronted with very different types of decision.
So we need some kind of classification of decision types, in order that we can differentiate one decision from another.
This document provides an overview of strategic planning and decision-making processes for organizations. It discusses strategic management, organizational goals and plans, the planning process, management by objectives (MBO), and SWOT analysis. Some key points covered include:
- Strategic management involves formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives.
- Organizations establish strategic, tactical, and operational goals and plans at different levels. Strategic plans outline long-term decisions, tactical plans implement strategic plans, and operational plans focus on short-term goals.
- The planning process involves establishing objectives, developing premises, evaluating alternatives, selecting a course of action, and developing derivative plans.
- M
Planning is a primary managerial activity that involves defining goals, establishing strategies, and developing plans. There are different levels and types of planning including strategic, operating, tactical, and unit plans. The benefits of planning include providing direction, allocating resources, determining budgets, assigning roles and responsibilities, and enabling better control. The strategic planning process involves analyzing the internal and external environment, formulating strategies, developing action plans, implementation, and review. Mission, vision, values and goals set the context for planning by describing the organization's purpose and desired future state.
Chapter 6 Decision Making The Essence Of The Manager S Jobmanagement 2
The document outlines the key aspects of the managerial decision-making process, including identifying problems, criteria, alternatives, and selecting the best alternative. It discusses rational and bounded rational decision making approaches and the role of intuition. Managers must make programmed decisions for well-structured problems and non-programmed decisions for poorly structured problems under conditions of certainty, risk, or uncertainty using different decision-making styles.
Importance and Process of Decision Making_By Parakramesh JaroliParakramesh Jaroli
This document discusses decision-making and its importance for managers. It defines decision-making as the process of selecting among options to achieve objectives. It then outlines 10 reasons why decision-making is important: 1) to perform management functions like planning, organizing, directing, and controlling, 2) to ensure success of the management process, 3) for the success of the enterprise, 4) as a mark of a manager's existence, 5) for evaluating managers, 6) for solving problems, 7) to limit risk, 8) for optimum utilization of resources, 9) to achieve objectives effectively, and 10) to face challenges. The document also presents the basic steps in the decision-making process.
This document outlines the key aspects of decision-making as discussed in Chapter 6. It begins by defining decision and decision-making process. It then describes the eight steps in the decision-making process as identifying the problem, identifying decision criteria, allocating weights, developing alternatives, analyzing alternatives, selecting an alternative, implementing the alternative, and evaluating the decision's effectiveness. It also discusses rational decision-making and its assumptions, as well as the concepts of bounded rationality, satisficing, and escalation of commitment in decision-making. The document provides examples and exhibits to illustrate decision-making concepts.
The document discusses objectives and decision making. It defines objectives and describes the characteristics and types of business objectives. It also outlines the management by objectives (MBO) cycle, which involves defining organizational and employee objectives, continuous monitoring, performance evaluation, feedback, and performance appraisal. Finally, it describes the seven steps of the decision making process: identify the decision, gather information, identify alternatives, weigh the evidence, choose among alternatives, take action, and implement the decision.
The document discusses planning and decision making. It describes the benefits and pitfalls of planning, how to make an effective plan, and how planning is used at different management levels from strategic to operational. It also outlines the steps of rational decision making, including defining problems, identifying criteria, generating alternatives, and choosing an optimal solution. Finally, it discusses limits to rational decision making and factors in group decision making.
Planning and decision making are important executive functions. Planning involves formulating strategies to achieve desired goals, while decision making is choosing between alternatives. There are different types of plans - tactical, strategic, operational, and contingency plans - each with their own purpose. Good planning is focused, actionable, and aligned. Decision making allows managers to better utilize resources and face challenges. Planning provides alternatives for decision makers to evaluate in addressing problems and achieving objectives. The two functions are interrelated, as decision making is at the core of planning implementation.
This document provides an overview of strategic planning and decision-making processes for organizations. It discusses strategic management, organizational goals and plans, the planning process, management by objectives (MBO), and SWOT analysis. Some key points covered include:
- Strategic management involves formulating, implementing, and evaluating cross-functional decisions to achieve organizational objectives.
- Organizations establish strategic, tactical, and operational goals and plans at different levels. Strategic plans outline long-term decisions, tactical plans implement strategic plans, and operational plans focus on short-term goals.
- The planning process involves establishing objectives, developing premises, evaluating alternatives, selecting a course of action, and developing derivative plans.
- M
Planning is a primary managerial activity that involves defining goals, establishing strategies, and developing plans. There are different levels and types of planning including strategic, operating, tactical, and unit plans. The benefits of planning include providing direction, allocating resources, determining budgets, assigning roles and responsibilities, and enabling better control. The strategic planning process involves analyzing the internal and external environment, formulating strategies, developing action plans, implementation, and review. Mission, vision, values and goals set the context for planning by describing the organization's purpose and desired future state.
Chapter 6 Decision Making The Essence Of The Manager S Jobmanagement 2
The document outlines the key aspects of the managerial decision-making process, including identifying problems, criteria, alternatives, and selecting the best alternative. It discusses rational and bounded rational decision making approaches and the role of intuition. Managers must make programmed decisions for well-structured problems and non-programmed decisions for poorly structured problems under conditions of certainty, risk, or uncertainty using different decision-making styles.
Importance and Process of Decision Making_By Parakramesh JaroliParakramesh Jaroli
This document discusses decision-making and its importance for managers. It defines decision-making as the process of selecting among options to achieve objectives. It then outlines 10 reasons why decision-making is important: 1) to perform management functions like planning, organizing, directing, and controlling, 2) to ensure success of the management process, 3) for the success of the enterprise, 4) as a mark of a manager's existence, 5) for evaluating managers, 6) for solving problems, 7) to limit risk, 8) for optimum utilization of resources, 9) to achieve objectives effectively, and 10) to face challenges. The document also presents the basic steps in the decision-making process.
This document outlines the key aspects of decision-making as discussed in Chapter 6. It begins by defining decision and decision-making process. It then describes the eight steps in the decision-making process as identifying the problem, identifying decision criteria, allocating weights, developing alternatives, analyzing alternatives, selecting an alternative, implementing the alternative, and evaluating the decision's effectiveness. It also discusses rational decision-making and its assumptions, as well as the concepts of bounded rationality, satisficing, and escalation of commitment in decision-making. The document provides examples and exhibits to illustrate decision-making concepts.
The document discusses objectives and decision making. It defines objectives and describes the characteristics and types of business objectives. It also outlines the management by objectives (MBO) cycle, which involves defining organizational and employee objectives, continuous monitoring, performance evaluation, feedback, and performance appraisal. Finally, it describes the seven steps of the decision making process: identify the decision, gather information, identify alternatives, weigh the evidence, choose among alternatives, take action, and implement the decision.
The document discusses planning and decision making. It describes the benefits and pitfalls of planning, how to make an effective plan, and how planning is used at different management levels from strategic to operational. It also outlines the steps of rational decision making, including defining problems, identifying criteria, generating alternatives, and choosing an optimal solution. Finally, it discusses limits to rational decision making and factors in group decision making.
Planning and decision making are important executive functions. Planning involves formulating strategies to achieve desired goals, while decision making is choosing between alternatives. There are different types of plans - tactical, strategic, operational, and contingency plans - each with their own purpose. Good planning is focused, actionable, and aligned. Decision making allows managers to better utilize resources and face challenges. Planning provides alternatives for decision makers to evaluate in addressing problems and achieving objectives. The two functions are interrelated, as decision making is at the core of planning implementation.
Managers at different levels engage in planning for different timeframes and scopes. Upper-level managers plan strategies for the long-term future of the entire organization, while lower-level managers plan for their subunits in the shorter term. There are four basic steps to planning: establishing goals, defining the current situation, identifying aids and barriers, and developing action plans. Planning involves two main types of plans - strategic plans that implement the organization's mission, and operational plans that provide details on accomplishing strategic plans. Effective planning is linked to controlling by comparing actual results to planned budgets, programs, and standards.
Prime therapeutics has seen declining profits and must cut costs by downsizing staff. To make ethical decisions, they will use the 5 Whys method to understand the root causes of declining profits and potential solutions. Any staffing decisions must avoid targeting people based on attributes like race, religion, or orientation. Moving forward, Prime will communicate its status quarterly using the PDCA model to gain employee buy-in for changes through open communication.
This document discusses planning and decision making in managerial processes. It defines planning as setting organizational goals and strategies to achieve them. Decision making involves choosing between alternatives. Planning reduces uncertainty and waste by looking ahead and coordinating work. Managers at all levels are involved in planning, organizing, leading, and controlling, but spend different amounts of time on each based on their level. The decision making process involves 6 steps - identifying the situation, alternatives, evaluating alternatives, selecting the best option, implementing it, and evaluating results. Planning and decision making are key managerial functions for achieving organizational goals effectively and efficiently.
This document discusses the principles of management and types of decision making. It defines decision making as
It describes the main types of decisions as programmed vs non-programmed, operational vs strategic, organizational vs personal, and individual vs group. Programmed decisions are routine while non-programmed decisions are exceptional situations. Operational decisions focus on short-term efficiency while strategic decisions have long-term impact. Organizational decisions are made in the manager's role, while personal decisions may still impact the organization. Individual decisions are for routine matters, while group decisions are preferred for important strategic decisions.
The document outlines the steps in the decision making process as defined by Ponmuthu S. and Daniel R. The 8 step process includes: 1) defining the problem and goals, 2) identifying decision criteria, 3) allocating weights to criteria, 4) gathering alternatives, 5) evaluating alternatives, 6) selecting the best alternative, 7) implementing the alternative, and 8) evaluating the decision's effectiveness. Key aspects of each step are described, such as using decision criteria, assigning weights based on importance, evaluating alternatives based on factors like feasibility and costs, and monitoring the implemented alternative. The overall process is meant to help decision makers systematically analyze problems and select optimal solutions.
This document discusses different types of leadership styles and planning processes. It describes autocratic, democratic, and laissez-faire leadership styles. It also outlines the planning process, including setting goals and developing strategic, tactical, and operational plans. Effective planning involves determining goals and means for achieving them across multiple levels of the organization. Barriers to planning include difficulties with accurate assumptions and rapid change, as well as internal and external inflexibilities.
Decision making the essence of managers job MBABabasab Patil
Managers make decisions as an essential part of their job. The document outlines the steps in the decision-making process, including identifying the problem, criteria, alternatives, analysis, selection, implementation, and evaluation. It also discusses rational and bounded rational decision making approaches, as well as the role of intuition. Managers face both well-structured and poorly-structured problems, and make programmed and nonprogrammed decisions under conditions of certainty, risk, and uncertainty, using different decision-making styles.
This document discusses various techniques that can be used in decision making processes. It begins by defining what a decision is and outlining the typical steps in a decision making process. It then describes several quantitative and qualitative techniques that can be employed at different stages of decision making, including marginal analysis, break even analysis, financial analysis, paired comparison analysis, Pareto analysis, ratio analysis, operation research techniques, nominal group technique, brainstorming, grid analysis, and force field analysis. The document concludes by emphasizing the importance of weighing pros and cons when making decisions and accepting responsibility for the consequences of decisions.
Decision making is a fundamental aspect of management that involves choosing between alternative courses of action to achieve desired results. Managers must make decisions to solve problems, and monitor the consequences to determine if further decisions are needed. There are different types of decisions like basic one-time decisions, routine repetitive decisions, programmed structured recurring decisions, and non-programmed unique situation decisions. Decision making can also be classified as personal, organizational, strategic, operational, problem-solving, opportunity-based, structured, unstructured, crisis-based, research-based, initiative, and referred. The typical decision making process involves awareness of a problem, diagnosing and stating the problem, developing alternatives, analyzing alternatives, selecting the best solution, and implementing and
The document discusses various aspects of planning including definitions, elements, nature and scope, importance, advantages, limitations, essentials, types, and steps in the planning process. Planning is defined as a conscious determination of courses of action based on purpose, knowledge, and estimates to make future decisions. The key elements of planning include objectives, resources, actions, responsibilities, and timelines. Planning aims to reduce uncertainty and facilitates control while allowing for innovation. Effective planning requires clear objectives, information systems, forecasting, flexibility, and cost-benefit analysis.
The document summarizes techniques for group decision making and disadvantages of group decisions. It discusses three techniques: nominal group technique which stimulates creative decision making when agreement is lacking; Delphi technique which allows experts in different locations to share opinions; and dialectical inquiry which approaches decisions from opposing viewpoints. It also lists five disadvantages of group decisions: they require more time; can be influenced by social pressure; may be dominated by minorities; individual goals may be prioritized over group goals; and groupthink can occur where members isolate themselves.
This document discusses decision making. It defines decision making as identifying and selecting a course of action to solve problems. The key aspects covered include:
- The importance of decision making for achieving objectives, optimizing resources, and improving efficiency and employee motivation.
- The process of decision making, which involves identifying the problem, analyzing alternatives, selecting the best solution, implementing it, and ensuring feedback.
- Techniques for both programmed and non-programmed decision making, including linear programming, decision trees, brainstorming, and quality circles.
- The relationship between planning and decision making, with decision making being core to planning and plans requiring decisions.
The document discusses managerial decision making. It defines decision making as identifying and resolving problems and capitalizing on opportunities. There are 7 steps in the decision making process: 1) identifying problems/opportunities, 2) setting objectives, 3) generating alternatives, 4) evaluating alternatives, 5) making a decision, 6) implementing strategies, and 7) monitoring/evaluating. It also discusses rational and behavioral models of decision making and techniques for improving group decision quality like brainstorming.
Planning involves setting goals and developing strategies to achieve those goals. It is a primary managerial activity that defines an organization's goals, establishes strategies to achieve those goals, and develops integrated plans. Planning can be informal and short-term or formal, written, long-term, and involve shared organizational goals. Managers plan to provide direction, reduce uncertainty, minimize waste, and set standards for control. Planning benefits include persistence, direction, intensified effort, and creation of task strategies. Potential pitfalls include a false sense of certainty, impedance of change, and detachment of planners. Effective planning involves setting SMART goals, developing commitment, creating action plans, tracking progress, and maintaining flexibility. Rational decision making is
This document discusses corporate planning and strategy formulation. It provides details on:
1) The corporate planning process which involves establishing strategic objectives, assessing capabilities and the environment, identifying gaps, and evaluating and selecting strategies.
2) Key considerations in strategy selection including internal consistency with objectives and resources, external consistency with the business environment, and criteria like high return and low risk.
3) Typical strategic issues that plans address such as expanding or contracting product lines, manufacturing capacity, and entering new markets.
Chapter 5 planning and decision making (part 1)klcullen-lester
The document discusses planning and decision making. It covers the key aspects of planning including setting goals, developing commitment, creating an action plan, tracking progress, and maintaining flexibility. It also discusses decision making, noting that the number of decisions managers make has increased over time. When making decisions, using groups can provide benefits like additional perspectives and information, but can also lead to disadvantages like groupthink. The document provides tips for avoiding groupthink when making group decisions.
This document provides an overview of key concepts from a chapter on managerial decision-making. It covers:
1) The eight-step process for rational decision-making including identifying the problem, criteria, alternatives, analysis, selection, implementation, and evaluation.
2) Factors that influence managerial decision-making such as bounded rationality, escalation of commitment, and intuition.
3) Types of decisions including programmed versus non-programmed and structured versus unstructured problems.
4) Decision-making conditions like certainty, risk, and uncertainty and approaches for uncertain situations.
5) Biases and styles that influence decision-making.
The document outlines concepts and models to help
This document discusses decision making environments and techniques. It describes three types of decision making environments: decision making under certainty, uncertainty, and risk. It also discusses decision trees, Bayesian analysis, and utility theory as tools for decision making under uncertainty and risk. The key techniques covered are expected value analysis, maximax/maximin criteria, and expected opportunity loss criterion for decision making under risk.
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PDF CONTAINS SOME SHORT NOTES ON JAVA INCLUDING CONCEPTS OF JFC ,EVENTS,RMI,ETC
JTREE,JINTERNAL FRAME,SOME PROGRAMS
QUESTION AND ANSWER
Managers at different levels engage in planning for different timeframes and scopes. Upper-level managers plan strategies for the long-term future of the entire organization, while lower-level managers plan for their subunits in the shorter term. There are four basic steps to planning: establishing goals, defining the current situation, identifying aids and barriers, and developing action plans. Planning involves two main types of plans - strategic plans that implement the organization's mission, and operational plans that provide details on accomplishing strategic plans. Effective planning is linked to controlling by comparing actual results to planned budgets, programs, and standards.
Prime therapeutics has seen declining profits and must cut costs by downsizing staff. To make ethical decisions, they will use the 5 Whys method to understand the root causes of declining profits and potential solutions. Any staffing decisions must avoid targeting people based on attributes like race, religion, or orientation. Moving forward, Prime will communicate its status quarterly using the PDCA model to gain employee buy-in for changes through open communication.
This document discusses planning and decision making in managerial processes. It defines planning as setting organizational goals and strategies to achieve them. Decision making involves choosing between alternatives. Planning reduces uncertainty and waste by looking ahead and coordinating work. Managers at all levels are involved in planning, organizing, leading, and controlling, but spend different amounts of time on each based on their level. The decision making process involves 6 steps - identifying the situation, alternatives, evaluating alternatives, selecting the best option, implementing it, and evaluating results. Planning and decision making are key managerial functions for achieving organizational goals effectively and efficiently.
This document discusses the principles of management and types of decision making. It defines decision making as
It describes the main types of decisions as programmed vs non-programmed, operational vs strategic, organizational vs personal, and individual vs group. Programmed decisions are routine while non-programmed decisions are exceptional situations. Operational decisions focus on short-term efficiency while strategic decisions have long-term impact. Organizational decisions are made in the manager's role, while personal decisions may still impact the organization. Individual decisions are for routine matters, while group decisions are preferred for important strategic decisions.
The document outlines the steps in the decision making process as defined by Ponmuthu S. and Daniel R. The 8 step process includes: 1) defining the problem and goals, 2) identifying decision criteria, 3) allocating weights to criteria, 4) gathering alternatives, 5) evaluating alternatives, 6) selecting the best alternative, 7) implementing the alternative, and 8) evaluating the decision's effectiveness. Key aspects of each step are described, such as using decision criteria, assigning weights based on importance, evaluating alternatives based on factors like feasibility and costs, and monitoring the implemented alternative. The overall process is meant to help decision makers systematically analyze problems and select optimal solutions.
This document discusses different types of leadership styles and planning processes. It describes autocratic, democratic, and laissez-faire leadership styles. It also outlines the planning process, including setting goals and developing strategic, tactical, and operational plans. Effective planning involves determining goals and means for achieving them across multiple levels of the organization. Barriers to planning include difficulties with accurate assumptions and rapid change, as well as internal and external inflexibilities.
Decision making the essence of managers job MBABabasab Patil
Managers make decisions as an essential part of their job. The document outlines the steps in the decision-making process, including identifying the problem, criteria, alternatives, analysis, selection, implementation, and evaluation. It also discusses rational and bounded rational decision making approaches, as well as the role of intuition. Managers face both well-structured and poorly-structured problems, and make programmed and nonprogrammed decisions under conditions of certainty, risk, and uncertainty, using different decision-making styles.
This document discusses various techniques that can be used in decision making processes. It begins by defining what a decision is and outlining the typical steps in a decision making process. It then describes several quantitative and qualitative techniques that can be employed at different stages of decision making, including marginal analysis, break even analysis, financial analysis, paired comparison analysis, Pareto analysis, ratio analysis, operation research techniques, nominal group technique, brainstorming, grid analysis, and force field analysis. The document concludes by emphasizing the importance of weighing pros and cons when making decisions and accepting responsibility for the consequences of decisions.
Decision making is a fundamental aspect of management that involves choosing between alternative courses of action to achieve desired results. Managers must make decisions to solve problems, and monitor the consequences to determine if further decisions are needed. There are different types of decisions like basic one-time decisions, routine repetitive decisions, programmed structured recurring decisions, and non-programmed unique situation decisions. Decision making can also be classified as personal, organizational, strategic, operational, problem-solving, opportunity-based, structured, unstructured, crisis-based, research-based, initiative, and referred. The typical decision making process involves awareness of a problem, diagnosing and stating the problem, developing alternatives, analyzing alternatives, selecting the best solution, and implementing and
The document discusses various aspects of planning including definitions, elements, nature and scope, importance, advantages, limitations, essentials, types, and steps in the planning process. Planning is defined as a conscious determination of courses of action based on purpose, knowledge, and estimates to make future decisions. The key elements of planning include objectives, resources, actions, responsibilities, and timelines. Planning aims to reduce uncertainty and facilitates control while allowing for innovation. Effective planning requires clear objectives, information systems, forecasting, flexibility, and cost-benefit analysis.
The document summarizes techniques for group decision making and disadvantages of group decisions. It discusses three techniques: nominal group technique which stimulates creative decision making when agreement is lacking; Delphi technique which allows experts in different locations to share opinions; and dialectical inquiry which approaches decisions from opposing viewpoints. It also lists five disadvantages of group decisions: they require more time; can be influenced by social pressure; may be dominated by minorities; individual goals may be prioritized over group goals; and groupthink can occur where members isolate themselves.
This document discusses decision making. It defines decision making as identifying and selecting a course of action to solve problems. The key aspects covered include:
- The importance of decision making for achieving objectives, optimizing resources, and improving efficiency and employee motivation.
- The process of decision making, which involves identifying the problem, analyzing alternatives, selecting the best solution, implementing it, and ensuring feedback.
- Techniques for both programmed and non-programmed decision making, including linear programming, decision trees, brainstorming, and quality circles.
- The relationship between planning and decision making, with decision making being core to planning and plans requiring decisions.
The document discusses managerial decision making. It defines decision making as identifying and resolving problems and capitalizing on opportunities. There are 7 steps in the decision making process: 1) identifying problems/opportunities, 2) setting objectives, 3) generating alternatives, 4) evaluating alternatives, 5) making a decision, 6) implementing strategies, and 7) monitoring/evaluating. It also discusses rational and behavioral models of decision making and techniques for improving group decision quality like brainstorming.
Planning involves setting goals and developing strategies to achieve those goals. It is a primary managerial activity that defines an organization's goals, establishes strategies to achieve those goals, and develops integrated plans. Planning can be informal and short-term or formal, written, long-term, and involve shared organizational goals. Managers plan to provide direction, reduce uncertainty, minimize waste, and set standards for control. Planning benefits include persistence, direction, intensified effort, and creation of task strategies. Potential pitfalls include a false sense of certainty, impedance of change, and detachment of planners. Effective planning involves setting SMART goals, developing commitment, creating action plans, tracking progress, and maintaining flexibility. Rational decision making is
This document discusses corporate planning and strategy formulation. It provides details on:
1) The corporate planning process which involves establishing strategic objectives, assessing capabilities and the environment, identifying gaps, and evaluating and selecting strategies.
2) Key considerations in strategy selection including internal consistency with objectives and resources, external consistency with the business environment, and criteria like high return and low risk.
3) Typical strategic issues that plans address such as expanding or contracting product lines, manufacturing capacity, and entering new markets.
Chapter 5 planning and decision making (part 1)klcullen-lester
The document discusses planning and decision making. It covers the key aspects of planning including setting goals, developing commitment, creating an action plan, tracking progress, and maintaining flexibility. It also discusses decision making, noting that the number of decisions managers make has increased over time. When making decisions, using groups can provide benefits like additional perspectives and information, but can also lead to disadvantages like groupthink. The document provides tips for avoiding groupthink when making group decisions.
This document provides an overview of key concepts from a chapter on managerial decision-making. It covers:
1) The eight-step process for rational decision-making including identifying the problem, criteria, alternatives, analysis, selection, implementation, and evaluation.
2) Factors that influence managerial decision-making such as bounded rationality, escalation of commitment, and intuition.
3) Types of decisions including programmed versus non-programmed and structured versus unstructured problems.
4) Decision-making conditions like certainty, risk, and uncertainty and approaches for uncertain situations.
5) Biases and styles that influence decision-making.
The document outlines concepts and models to help
This document discusses decision making environments and techniques. It describes three types of decision making environments: decision making under certainty, uncertainty, and risk. It also discusses decision trees, Bayesian analysis, and utility theory as tools for decision making under uncertainty and risk. The key techniques covered are expected value analysis, maximax/maximin criteria, and expected opportunity loss criterion for decision making under risk.
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PDF CONTAINS SOME SHORT NOTES ON JAVA INCLUDING CONCEPTS OF JFC ,EVENTS,RMI,ETC
JTREE,JINTERNAL FRAME,SOME PROGRAMS
QUESTION AND ANSWER
Mis chapter 2 infomation, management and decision makingAjay Khot
The document discusses three models of decision making: the classical model, administrative model, and Herbert Simon's model. It also covers attributes of information and their relevance to decision making. The chapter focuses on models of decision making, including individual and organizational models. It discusses the intelligence, design, and choice phases of Herbert Simon's model of decision making.
The document discusses farm management and outlines the functions of management including planning, implementation, control, and adjustment. It then discusses strategic farm management, identifying the steps as defining the mission, formulating goals, assessing resources, surveying the environment, identifying strategies, and implementing plans. Finally, the document discusses tactical decision making and characteristics of decisions in agriculture.
1. The document summarizes different approaches to management throughout history including the classical, quantitative, behavioral, and contemporary approaches.
2. It discusses key figures and theories such as Frederick Taylor's scientific management, Henri Fayol's 14 principles of management, Max Weber's bureaucracy theory, and the Hawthorne Studies' findings on the influence of social factors.
3. The document also covers management perspectives from an Islamic and early Arab context, noting the influence of factors like tribal life, the prophet Muhammad, and the complexity of cultural influences on Arab management thought and practice over time.
Managerial decision making involves responding to opportunities and threats by analyzing options and choosing courses of action. There are two types of decisions - programmed decisions which are routine, and non-programmed decisions which are unusual situations with no set rules. The classical model assumes all information is available, but the administrative model recognizes information is often incomplete. Effective decision making involves framing the problem, generating alternatives, evaluating alternatives, choosing an alternative, implementing it, and learning from feedback. Group decision making can reduce biases but risks groupthink; techniques like devil's advocacy and diversity can improve it. Organizational learning and creativity help decision making by challenging assumptions and encouraging new ideas.
Internal assignment no 1(MBA208) ANIL KUMARANIL KUMAR
The document discusses strategic management and the strategic management process. It outlines 5 key stages in the strategic management process: goal setting, analysis, strategy formation, strategy implementation, and strategy monitoring. It also discusses findings from research that show many organizations fail at executing strategies successfully. Additionally, the document provides details on different types of mergers, including horizontal, vertical, conglomerate, concentric, forward, reverse, and subsidiary mergers, and provides examples of each type.
The document discusses decision making and the decision making process. It defines decision making as the selection of a course of action from alternatives based on criteria. There are 6 main steps to the decision making process: 1) identifying and diagnosing the problem, 2) identifying alternatives, 3) evaluating alternatives, 4) choosing an alternative, 5) implementing the decision, and 6) evaluating the decision. Decision types include strategic, programmed, non-programmed, organizational, personal, and group decisions. The evaluation and implementation stages are critical to ensuring the effective selection and success of the chosen decision.
The document discusses decision making in management. It provides details on:
1. The group members involved in the decision making process.
2. Key aspects of decision making including defining problems, evaluating alternatives, and implementing and monitoring decisions.
3. Types of decisions like strategic, tactical, and operational and factors to consider under uncertainty like risk analysis and decision trees.
This document provides an overview of decision support systems (DSS) and related concepts. It defines DSS as computer-based systems that support business or organizational decision-making through the use of data, documents, knowledge, analytical models, and tools. The document discusses different types of decisions, levels of decision making, and models of decision making. It also describes the key components of a DSS, including data management, model management, user interface, and knowledge base subsystems. Finally, it outlines different types of DSS such as data-driven, model-driven, and knowledge-driven systems.
This document discusses decision making, including defining what a decision is, describing types of decisions, examining decision-making models and processes, and identifying common difficulties. A decision involves choosing between two or more alternatives to achieve a purpose. Decisions can be programmed/non-programmed, major/minor, routine/strategic, individual/group, and simple/complex. Effective decision making is an essential managerial skill that involves carefully evaluating multiple alternatives.
This document contains discussion questions and general questions related to business strategies, leadership, and management. It includes questions about how economic trends have affected industries, identifying remote/industry environments that influence company strategy, and examples of leadership styles and management techniques. The document also provides a link to an online tutorial for additional information.
This document defines and explains various key concepts in management. It defines management as a process of designing and maintaining an environment where individuals work together in groups to efficiently accomplish goals. The five main managerial functions are identified as planning, organizing, staffing, leading, and controlling. Other concepts defined include productivity, organizing, leading, coordination, conceptual skills, goals, policies, procedures, budgets, management by objectives, planning premises, decision making, risk analysis, and social responsiveness.
1. Decision making involves identifying problems, gathering relevant information, identifying alternatives, weighing the evidence, choosing among alternatives, taking action, and reviewing the decision. It is a continuous process that aims to solve problems and meet goals.
2. Effective communication of decisions and participation in decision making from concerned individuals can improve the decision making process. Decisions must be clearly conveyed and input should be gathered from those affected.
3. There are various types of decisions including programmed vs non-programmed, organizational vs personal, major vs minor, and individual vs group decisions. Different decision types are handled differently within an organization.
This document discusses the decision making process in organizations and its importance. It describes decision making as identifying problems, gathering relevant information, developing alternative solutions, analyzing alternatives, selecting the best option, implementing the decision, and reviewing the decision. The summary discusses the types of decisions as programmed/non-programmed, operational/strategic, organizational/personal, and individual/group decisions. It also outlines the seven step decision making process as identifying the problem, collecting information, identifying alternatives, developing solutions, implementing the decision, taking action, and reviewing the decision.
In this paper we discuss the decision making process in an organization for effectiveness. In this process including six important steps useful for organization effectively done. In such complex and fast changing organization environment, manager and employees are faced with many problem and they have make decision. Decision making is an integral part of the management of any organization. (Pearce II & Robinson- 1989) indicate that decision making is inevitable because to explicitly avoid making a decision is in itself to make a decision. Managers are usually making many decision some of them strategic and other operational. Decision making is referred to as the heart of the management process (Mann 1976). Decisions are long, complex, highly unstructured and risky and have great impact on the future on organization. Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.
Strategic, Strategic Management and Business Policyashnanehta
This presentation gives a detailed account of
- What is strategy?
- What are the various levels of strategy?
- Stories of exemplar strategies
- Criteria for Strategic Decision Making
- Phases of strategic Management
- Elements of strategic Management
- Implementation of strategic management model
Here is a handout containing the PowerPoint Presentation contents of the of the Presentation version of this subject.
Decision Making in Terms of Engineering Management.
Vskills manufacturing technology management professional sample materialVskills
Strategic management involves formulating goals and implementing initiatives based on internal and external environmental assessments. There are four phases to strategic management processes: defining vision/mission/objectives, strategy formulation, implementation, and evaluation. Strategic decision making considers opportunities/threats and involves committing resources. Mintzberg identified four strategic decision making modes: entrepreneurial, adaptive, planning, and logical incrementalization. Environmental analysis monitors opportunities/threats in the external environment through continuous scanning.
This document discusses policy-based management and strategic planning. It defines policy-based management as an administrative approach that establishes policies to deal with situations that may occur. Policies provide rules and consistency. The document outlines different types of policies, including originated, appealed, implied, and externally imposed. It then discusses strategic planning, including defining mission and objectives, analyzing strengths, weaknesses, opportunities and threats, formulating strategies, implementation, and evaluation. Strategic planning determines long-term goals and commits to courses of action. The document emphasizes that strategy emerges through planned and adaptive actions in response to the environment.
This document summarizes planning techniques and tools discussed in a presentation. It discusses short-term plans that guide activities within an organization, strategic plans that define organizational goals, and standing plans that are ongoing. Forecasting and contingency planning are described as attempting to predict the future and having alternative plans. Scenario planning prepares for different future scenarios. Benchmarking compares performance internally or externally. Participatory planning includes affected people. Decision-making requires the right information and abilities; there are structured, unstructured, certain, and uncertain conditions; and an 8-step process is outlined. In the end, groups are instructed to apply the decision-making process to an organizational problem.
This document discusses decision making in business. It begins by stating that decisions are made consciously or subconsciously in daily life and must be made scientifically in business since they affect operations. It then defines decision making as selecting between alternative courses of action to solve a problem. The document outlines the key features and steps of the decision making process, which includes identifying the problem, diagnosing causes, setting objectives, gathering information, generating alternatives, evaluating options, selecting a choice, implementing it, and monitoring the results. It also describes different types of decisions as either programmed, routine decisions or non-programmed unique decisions.
Importance & Steps in Decision Making_Parakramesh Jaroli_Pacific UniversityParakramesh Jaroli
The document discusses the importance and steps of decision making. It states that decision making is important for performing management functions like planning, organizing, directing and controlling. It also allows managers to solve problems, limit risks, utilize resources optimally and achieve objectives. The key steps in decision making are: 1) identifying problems, 2) diagnosing problems, 3) establishing objectives, 4) identifying constraints, 5) finding alternatives, 6) evaluating alternatives, 7) selecting an appropriate alternative, and 8) implementing the decision. Effective decision making is essential for the success of management and organizations.
This document discusses strategy implementation and organizational structure. It provides details on analyzing change during implementation, different types of organizational structures including functional, divisional/decentralized, and strategic business unit structures. The key points are:
1) Strategy implementation involves managing forces during action and requires motivation/leadership skills.
2) Organizational structure consists of organizing people efficiently to achieve goals and can be centralized/decentralized.
3) Common structures include functional (by department), divisional (by product/market), and strategic business unit (groups divisions with commonalities). Each structure has advantages and disadvantages for implementation.
Management Accounting studies the preparation and use of cost accounting information for managerial decision-making and control purposes. This course provides students with the tools needed to understand and address the important problems facing management accountants today. In order to keep up with the class, students should go over the relevant chapters and problems prior to each class. This must then be followed by a more in-depth review of the material and practice of problems after the class.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
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Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
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How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
MATATAG CURRICULUM: ASSESSING THE READINESS OF ELEM. PUBLIC SCHOOL TEACHERS I...NelTorrente
In this research, it concludes that while the readiness of teachers in Caloocan City to implement the MATATAG Curriculum is generally positive, targeted efforts in professional development, resource distribution, support networks, and comprehensive preparation can address the existing gaps and ensure successful curriculum implementation.
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
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2. Decision making is the central management activity, but its importance cannot be
ascertained without pointing out the differences which individual managers face in
making decisions.
All management decisions are not the same.
We know that, in practice, those occupying different positions within the organization and
therefore performing a different set of management tasks, are confronted with very
different types of decision.
So we need some kind of classification of decision types, in order that we can
differentiate one decision from another.
PRENTED BY: VIQAR A.USMANI 2
3. TYPES OF MANAGEMENT DECISION
We might categorise decisions by ascertaining which part of the
organisation has responsibility for the decision.
This would develop a kind of “organisation tree” of decisions which would
correspond closely to the company’s organisational structure.
The problem with doing this is that it would involve us in the specific
management content,
for example, quality controllers, brand managers, personnel managers, and
so on.
We need to identify the general dimensions of decisions, which portray their
essential character without resort to their specific substance.
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4. General Dimensions of Decisions
Three dimensions are particularly useful to differentiate management
decisions:
A. How much of the organisation the decision encompasses,
i.e. whether the decision is Strategic or Operational.
B. How well defined the decision is,
i.e. whether the decision is Unstructured or Structured.
C. How connected the decision is with others,
i.e. whether the decision is Dependent or Independent.
PRENTED BY: VIQAR A.USMANI 4
5. Strategic and Operational Decisions
A manager who is in charge of a small manufacturing
unit might, over a period of time, make several
decisions.
These will include such things as:
o Should a machine which is starting to give trouble be
replaced or should the maintenance people patch it
up?
o Should a further experienced worker be taken on or
should a younger person be hired to train up?
o Should order A or order B be given priority in this
week’s schedule?
PRENTED BY: VIQAR A.USMANI 5
6. Strategic and Operational Decisions
The manager in the same organisation who has executive control
over the whole company might, over the same period of time, also
make many decisions.
For example:
o Should the company buy out one of its small raw materials
suppliers that is in financial difficulties?
o Should the company take on more long-term debt or raise
capital on the stock market?
o Should the company set up a manufacturing plant in Europe
rather than export its products?
PRENTED BY: VIQAR A.USMANI 6
7. Strategic and Operational Decisions
The set of decisions made by the first manager are operational in nature.
None of them, if badly made, will drive the firm immediately out of business, their
consequences are immediate and relatively predictable.
Operational decisions are concerned with the process of turning given resource inputs
into required outputs.
In general, operational decisions are carried out mostly by managers in the lower and
middle reaches of the organisational hierarchy.
The second manager’s set of decisions are strategic in nature.
They involve the future of the whole organisation, are important, probably long term in
their effects, and cannot be made in a “routine” manner.
Strategic decisions are usually-one-offs, characterised by a high degree of risks
and/or uncertainty.
Strategic decisions differ from operational decisions in that they:
Relate the organisation to its environment. Involve a large part of the organisation
PRENTED BY: VIQAR A.USMANI 7
8. The term strategic then depends on how we choose to define “the organisation”.
The first manager in our example, who is in charge of the small manufacturing unit,
can make decisions which are strategic in terms of the unit, if not the whole
company.
If the manager decides to change the working pattern of the unit from a two shift to a
three shift day, then that decision is strategic for the unit.
It changes the unit’s position in its environment and affects the whole unit.
Some writers believe the strategic-operational dimension of management decision
making to be the most important in determining the character of a decision.
Anthony, develops a framework which includes the strategic and operational ends of
our dimension, but also includes an intermediate category.
His three categories are:
strategic planning,
management control, and
operational control
PRENTED BY: VIQAR A.USMANI 8
9. Strategic Planning is defined as:
.. . the process of deciding on objectives of the organisation, on
changes in these objectives, on the resources to obtain these
objectives, and on the policies that are to govern the acquisition,
use, and disposition of these resources.
Management Control is defined as:
...the process by which managers assure that resources are
obtained and used effectively and efficiently in the accomplishment
of the organisation’s objectives.
Operational Control is defined as:
. .. the process of assuring that specific tasks are carried out
effectively and efficiently.
PRENTED BY: VIQAR A.USMANI 9
10. In Anthony’s framework the term “planning ‘is used to describe strategic
level decisions, whereas intermediate and operations level decisions are
termed control activities.
This implies that strategic decisions set the intended direction of the
organisation, are broad in scope, are relatively unconstrained, and occur
fairly infrequently.
Operational control decisions, on the other hand, are concerned with the
detailed implementation of higher level plans, the detection of any
deviation from these plans, and the relatively frequent readjustment of
resources.
PRENTED BY: VIQAR A.USMANI 10
11. Unstructured and Structured Decisions
Some decisions are clear, well defined, distinct, and unambiguous.
Other decisions are ill-understood, fuzzy, and difficult to tackle.
These are the differences between structured and unstructured decisions.
From the purely practical viewpoint the dimension is perhaps the most
important in determining the ease with which a decision can be made.
Consider the statements in next slides from two managers who describe a particular
decision to be taken.
PRENTED BY: VIQAR A.USMANI 11
12. Decision 1.
I have to choose a new packaging machine for our existing products.
There are only two types of machine in the market, both of which are fairly similar to
our existing machine, which can no longer keep up with production requirements.
Both types have been on the market for some years and are considered reliable by
the industry. I will choose the machine which gives the best after-tax discounted
return, calculated over a five year period. This will involve collecting details of each
machine, such as purchase price and running costs, from the manufacturers, and
using this information in a predetermined formula which our accounts department
issues for all such decisions. I will then place an order for the chosen machine and
inform the departmental foreman as to when it should arrive.
PRENTED BY: VIQAR A.USMANI 12
13. Decision 2.
I need to decide what our product range should look like in two years’ time. The
reports coming back from our salespeople indicate, that some of the products are
beginning to be less attractive than our competitors’ products. Whether we can
merely update some of our existing products, or alternatively go for a totally new
product range, I do not know. Since the decision will affect several other areas of the
company, I will have to consult and take advice from managers in other functional
areas. I suppose that any decision will have to be broadly in line with what they feel is
feasible. The new product range will have to provide the basis for the long term
security of the company, without requiring a level of immediate funding which will
threaten the company’s short term survival.
PRENTED BY: VIQAR A.USMANI 13
14. The first decision is structured.
It is structured in the sense that it is well defined.
The decision maker knows the extent of the decision, and the options
between which a choice has to be made are clear.
Neither is the decision novel.
Evaluation criteria have been previously thought through and are explicit
and unambiguous.
A decision maker, therefore, has a well understood and agreed procedure
to follow in order to reach a choice.
In other words, the decision is “programmable”.
PRENTED BY: VIQAR A.USMANI 14
15. The second decision is unstructured.
The decision body is not clearly defined, either in terms of who is
Involved in the decision or what their objectives might be.
The options to be considered are not immediately apparent, because
the decision is unlikely to have occurred before in this form, or under
these exact circumstances.
Also, because of the novelty of the decision, the decision maker does
not have a clear view of how to tackle the decision.
PRENTED BY: VIQAR A.USMANI 15
16. Dependent and Independent Decisions
The third important way to categorise decisions is in terms of their degree of dependency
on other decisions.
The degree of dependency of a decision can be measured on two scales;
• a scale representing influence of past and possible future decisions, and
• a scale representing the degree of influence across other areas of the organisation.
PRENTED BY: VIQAR A.USMANI 16
17. The first scale concerns past and future decisions.
Many decisions are influenced by other decisions that have been taken in the
past. Sometimes past decisions have determined the resource constraints
within which we can work on the present decision.
Sometimes past decisions have contributed to a slowly developing set of
policies which in effect constrain what is considered to be appropriate and
feasible.
Sometimes the degree of previous support for a decision can be such that any
change can prove embarrassing.
For example, the decision on when to call a halt to a project which is not
proving particularly successful, but which has consumed large amounts of
resources, can be very difficult.
A decision can also be affected by considerations of future decisions.
PRENTED BY: VIQAR A.USMANI 17
18. Decision Types and Decision Elements
Each of our three dimensions represents a continuum rather than a
straightforward dichotomy, and decisions may be placed anywhere on each
continuum.
This means that there are, theoretically, an infinite number of decision types.
However, in order to examine the way in which the elements of decisions vary
with decision type, we can make a generalisation which greatly simplifies the
task.
This is that strategic decisions tend to be unstructured and dependent,
whereas operational decisions tend to be structured and independent.
This crude generalisation is borne out 'when we see the characteristics of each
decision element for the two categories of decision as shown in Figure in next slide.
PRENTED BY: VIQAR A.USMANI 18
20. Interpreting this figure needs some care.
We are not trying to say that all operational decisions are also structured
and independent, and all strategic decisions are also unstructured and
dependent, but there does tend to be some connection between the three
dimensions.
There are, for example, far more strategic decisions which are dependent
than there are strategic decisions which are independent.
There are more unstructured strategic decisions than structured strategic
decisions, and so on.
So, for instance, while the decision options of a strategic decision are
less likely to be immediately apparent than in an operational decision, a
decision which is strategic and unstructured and dependent is very
unlikely to have decision options which are immediately apparent.
PRENTED BY: VIQAR A.USMANI 20
21. THE DECISION ENVIRONMENT
Core and Boundary Decisions
Some management decisions are located deep inside the organisation.
Inputs to the decision come from within the organisation, and any outputs go back into it.
They tend not to be affected, except in the long term, by changes in the environment of
the organisation.
Even then, any change tends to be through a process of adaptation, rather than
innovation.
We shall call these decisions core decisions.
Core decisions can be taken at all levels throughout the organisation, their very nature
means that core decisions are operational rather than strategic, and most are carried out
lower down the hierarchy.
All core decisions are operational - not all operational decisions are core
PRENTED BY: VIQAR A.USMANI
21
22. Other management decisions, far from being core, are located at the boundaries of the
organisation.
In a world of corporate refocusing, down sizing, and outsourcing, a critical strategic
decision that many senior managers make is determining their firm's boundary.
"Which business activities should be brought within the boundary of the firm?" and
"Which business activities should be outsourced?"
These are essential strategic questions in determining a firm's boundary.
Firms that bring the wrong business activities within their boundaries risk losing
strategic focus and becoming bloated and bureaucratic.
Firms that fail to bring the right business activities within !heir boundaries risk losing their
competitive advantages and becoming "hollow corporations”.
Fortunately, a well-developed approach exists for determining a firm's boundary Called
transactions costs economics, this approach specifies the conditions under which firms
should manage a particular economic exchange within their organizational boundary as
well as the conditions under which it should be outsourced.
PRENTED BY: VIQAR A.USMANI 22
23. PRENTED BY: VIQAR A.USMANI 23
Not only is this approach well developed, it is remarkably simple, and many of its
prediction. and prescriptions have received empirical support.'
Indeed in its most popular version this approach requires managers to consider only
a single characteristic of an economic exchange .
The level of transaction specific investment, in order to decide.
24. Those managers involved with boundary decisions are concerned to manage the
interface between the organisation and its environment.
And this relationship might be at a strategic or at an operational level.
For example, the personnel manager with a recruitment problem might be making
operational-boundary decisions, bringing in recruits on a regular basis to meet the
ongoing needs of the organisation.
If, on the other hand, the decision involves the recruitment of a new Managing Director,
then it might well become a strategic boundary one.
Characteristically, boundary decisions carry a higher degree of uncertainty than core
decisions.
PRENTED BY: VIQAR A.USMANI 24
25. Functional Area and Boundary Decisions
Every functional area of an organisation is likely to be concerned both with core and
boundary decisions, but some functional areas will lay stress on one particular type.
For example, since the role of the marketing function is concerned with the market
for its products or services, it tends to be concerned with boundary more than core
decisions. Some of these are operational, such as sales force organisation.
Others are strategic, deciding product mix for example.
Yet the crucial and obvious importance of product and market policy for the health of
any organisation often means that the marketing function is especially influential in
the strategic area.
Thus the emphasis on the marketing function tends to be on strategic/boundary
decisions.
The operations function, as its name implies, is generally associated with decisions
which are at the operational level.
The scheduling and control of production for example.
Because of its responsibility for the day-to-day tasks of the organisation, its
emphasis is largely operational.
PRENTED BY: VIQAR A.USMANI 25
26. The Decision Environment
The intention in identifying the distinction between core and boundary decisions is
to illustrate how much decision making is at the boundary of the organisation and
therefore must be concerned with its environment.
Yet concern with the environment in which organisations operate is a relatively
recent phenomenon.
Classical ideas about organisations tended to look inwards, focusing on the search
for the “perfect organisation” where successful operation is achieved through good
organisation and proper work methods;
where “efficiency” of internal operation is seen as the way to overall effectiveness.
If the correct principles of management are adhered to, then the organisation will
always gain best advantage, whatever is going on in the outside world.
More modern views would see the organisation as an “open system”, taking
resources from and giving products and services' back to the wider environment,
adapting and reacting to changing opportunities, threats and challenges in that
environment.
PRENTED BY: VIQAR A.USMANI 26
27. Some of the changes that have faced business enterprises in recent years
include:
Loss of control over energy sources, and the use of energy as a political
and economic weapon, such as the oil embargo of the early 1970s.
The increasing rate of technological development, as in micro-processor
developments, causing rapid diminution of product life-times.
An increasingly critical focus on the social responsibilities of the business
organisation in such areas as safety and pollution.
Political influence over international trading relationships, such as
membership of the European Economic Community or East-West trade
embargoes.
The changing role of government in the affairs and activities of work
organisations.
PRENTED BY: VIQAR A.USMANI 27
28. Environment
An organization's environment is to think of it as being the totality of circumstances
(of whatever kind) under which the organisation operates.
Everything outside of the boundary of that organisation is part of its environment.
Whilst some environmental factors will have a major role to play in creating and
shaping any particular decision, much of the total potential environment can often
be regarded as being effectively inactive.
So in order to understand the nature of the organisation-environment relationship
better, we need to distinguish between:
the “specific” environment.
the “general” environment.
PRENTED BY: VIQAR A.USMANI 28
29. The Specific Environment:
We can separate from the total environmental picture those elements with which the
organisation relates directly and on a more or less regular basis.
These elements can be called the specific environment.
For example, a large supermarket has daily contact with such elements of its
environment as its customers, its suppliers, and the security company who guards the
takings.
The General Environment:
Any one organisation will operate with a particular specific environment, and, as a
consequence, face up to a unique set of pressures.
Many underlying environmental features, however, must of necessity be common to a
large number of organisations at the same time.
Economic recession, for example, can paint the backcloth for the activities of whole
industries and, for that matter, whole economic systems.
These common features form a general environment within which organisations and,
therefore managers, have to operate.
PRENTED BY: VIQAR A.USMANI 29
30. Hall has categorized the seven major areas of this general environment as:
1. Technical
2. Legal
3. Political
4. Economic
5. Demographic
6. Ecological
7. Cultural
Considerable change and movement has occurred in all of these areas in the past,
and clearly will continue to do so in the future.
Unfortunately, such changes are sometimes seen by managers as being less
relevant and certainly less significant than those short-term problems deriving from
the specific environment.
There are a number of reasons for this discussed in the next slide.
PRENTED BY: VIQAR A.USMANI 30
31. Short-term problems have to be dealt with in the short term, and may absorb
so much energy that little is left for longer term issues. We naturally tend to
link immediacy with importance.
Trends in the general environment are difficult to identify and to isolate. They
are less “solid” and tangible than issues in the specific environment.
Many organisations, particularly small ones, may not have the resources to
channel into monitoring the general environment, even when the need to do
so is recognized.
PRENTED BY: VIQAR A.USMANI 31
32. Complexity, Change and Perceived Uncertainty:
Two further aspects of an organization's decision environment which affect the
context of a decision are:
(a) whether the environment is simple or complex and
(b) whether the environment is static or dynamic.
Simple environments are those which have relatively few elements and those
which do exist are probably similar to each other and well understood.
A complex environment has a large number of factors all of which may be quite
different from one another, and their interrelationship difficult to comprehend.
A static environment is one that is stable and unchanging over time
A dynamic environment is subject to a certain amount of change which possibly
may be difficult to forecast.
These dimensions of the environment can make considerable differences to the
perceived uncertainty of any organisation.
PRENTED BY: VIQAR A.USMANI 32
33. The Extent of Information Available
The way in which uncertainty might manifest itself in a decision is usually as a lack
of information.
In some decisions there is an abundance of information.
All the possible options can be fully described, the uncontrollable factors have a
history which enables the decision maker to predict their probability of occurrence
with reasonable confidence, and the various attributes of all the possible
consequences can be documented.
On the other hand, some decisions may take place in circumstances where very
little is known about the options, possible states of nature, or resultant
consequences.
Thus the extent of information available can be regarded as an important aspect of
a decision’s context.
The extent of information may depend on the time available to collect it.
Time, effort and money can sometimes change a situation of little information into
one where the information is regarded as adequate.
PRENTED BY: VIQAR A.USMANI 33
34. The Time Available
The time available to collect information will itself be determined by the context of a
decision.
And here the time available to make a decision is the gap between when it
becomes clear that a decision must be made, and the time when the decision
needs to be made.
For Example,If a sealed tender to contract is required by a particular date, then, if
management do not make a decision by that date, their opportunity to choose
effectively disappears, and the decision is made by default.
At other times, the due date of the decision is less clear.
For example, suppose a retail chain store is buying a new outlet.
There might be several possible sites currently available.
As time passes without a decision being made, some of these sites could be sold
to other buyers and become unavailable.
At the same time other sites could become available which were not options at the
beginning of the decision process.
PRENTED BY: VIQAR A.USMANI 34
35. In some decisions the timing of the decision, and therefore the time avail-
able, can be a decision in itself.
Many decisions have a timing element to them.
A manager wishing to introduce a new payment scheme, for example, has
to decide not only which payment scheme to introduce, but also when to
introduce it.
A company wishing to expand its production capacity has to decide both
who is promoted, and when it is an expedient time to make the
announcement.
Thus, in many decisions, the time available to make the decision and the
decision itself are interrelated.
PRENTED BY: VIQAR A.USMANI 35
36. The Decision Stimulus
The time available also determines what is perceived to be the stimulus to the
decision. In decisions where, little time is available, pressure on the decision maker
will gradually build until the point where a decision has to be taken.
Decisions with no time pressures can be taken according to the will of the decision
maker.
Here, although there are no pressures forcing a decision, the decision maker decides
that it is expedient to do so.
These two ends of the spectrum, of forced -decisions and decisions at will, are called
crisis and opportunity decisions by Mintzberg et al.
Decision in between the two ends of the spectrum they term problem decisions.
OPPORTUNITY PROBLEM CRISIS
DECISIONS. DECISIONS DECISIONS.
Decisions Occurs
Because of
“Managerial Will”
Alone.
External
Stimulus forces
a decision
PRENTED BY: VIQAR A.USMANI 36
37. THE APPROACH TO DECISION MAKING
The decision which a manager sees, and the decision which is formalized
as something to be solved, are not necessarily the same thing.
Managers have discretion as to how a decision is set up as the “decision
for solution".
The way in which discretion is used is either by changing the boundary of
the decision or changing the way in which elements within-the decision
are treated.
Boundary discretion concerns what, or how many, decision elements to
include in the analysis, whereas treatment discretion concerns the way
the decision, elements are treated. Some of these areas of discretion are
listed in next slide.
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38. Boundary Discretion:
Is it assumed that a single decision maker will make the choice, or will the views of
several decision makers have to be taken into account?
Will it be assumed that the decision makers have objectives which are simple and
can be represented by a single measure, or each have several objectives needing
different measures?
Will the range of decision options be limited to those which arc immediately
discernible, or shall the range of options be widened following a comprehensive
search for new options?
Shall we include every uncontrollable factor which we think has any influence on
the outcome of the decision, or shall we confine our consideration to the single
most important uncontrollable factor?
Shall we assume that the consequences of the decision can be described ade-
quately by a single attribute, or shall we include all attributes?
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39. Treatment Discretion
Shall we describe the uncontrollable factors by taking their most likely values
as “single point” estimates, or shall we use a probability distribution to
describe the range of values which the factor could take?
Do we treat factors as uncontrollable which are partly within our control?
Do we assume that each possible consequence within a decision situation is
known with certainty, or do we assume that each combination of decision
option and state of nature could produce a range of possible consequences?
Approaching the decision in different ways affects where a decision is placed on
our three dimensions of decisions;
• strategic-operational,
• unstructured-structured,
• interdependent-independent
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40. As a further example of the use of the decision approach, consider a Head
Office manager deciding on the future shape of the company’s distribution
system.
The manager knows that the new distribution service needs to ship' the
goods at a low unit cost while maintaining, and preferably improving on, the
present level of customer service.
At the same time, any new system must be broadly acceptable to all the
present regional managers, who do not want to see too much disruption to
their present networks.
In this decision, the decision body consists of the Head Office staff and the
regional managers.
The decision options are numerous;
some of them are not immediately apparent.
The consequences of the decision will have several attributes under the
broad headings of set up costs, operational costs, likely customer service
level, and degree of disruption to the present system.
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41. Faced with this decision the manager might very well review it in the following
terms.
“The whole decision is vastly complex and I am not sure where to begin, unless I make some
simplifying assumptions.
I shall assume that all the present regional distribution centers are to remain, and base my new
distribution network on those centers.
Furthermore, I shall look at only two attributes of the consequences of any decision, namely Unit
operational costs and customer service.
When I have decided on a satisfactory network using the above assumptions, I shall check it out
against other criteria and consult with the regional managers.
If my decision then proves unsatisfactory, I suppose I will have to relax some of the assumptions I
made originally.”
The important point is that managers should not regard a decision as immutable.
No matter how the decision is originally presented, they have the discretion, and
should have the ability, to change their view of the decision, perhaps temporarily,
so as either to increase the usefulness of any solution, or to aid the decision
making process itself.
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42. SUMMARY
Management decisions may be regarded as being a continuum ranging
from strategic to operational, where strategic decisions both relate the
organization to its environment and involve a large part of the
organization.
They may also be classified as structured or unstructured, where
structured means clear and unambiguous, and unstructured means ill-
understood and difficult to tackle.
Finally decisions may be classed as being either dependent or
independent.
Decisions with a high degree of dependency will have to take account of past
or possible future decisions in the same part of the organisation, or decisions
which have, or could, take place in other areas of the organisation.
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43. SUMMARY (contd.)
Where any decision lies within these three dimensions will influence its
decision elements.
Decisions which are strategic, unstructured and dependent will tend to
have multi-person decision bodies, options which are not immediately
apparent, uncontrollable factors which are both numerous and
unpredictable, and multi-attribute consequences.
Conversely, decisions which are operational, structured and
independent can have single decision makers, apparent options,
relatively few uncontrollable factors, and predictable consequences.
Finally, the decision approach refers to the way in which the decision
maker uses his or her discretion as to how the decision should be
presented as an issue to be solved.
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