The document discusses decision making processes and styles. It describes linear thinking which views problems as discrete and unique, versus systems thinking which sees problems as complex and related. There are programmed decisions for routine problems and non-programmed decisions for unique problems. Decision making occurs at strategic, administrative, and operational levels. Manager styles include problem avoiders, problem solvers, and problem seekers. The decision making process involves situational analysis, setting goals, generating alternatives, evaluating consequences, pilot testing, and implementation with feedback.

2. • Introduction:
• Ways of thinking About
Decision making:
• Types Of Decision Making:
• Levels Of Decision Making:
• Styles Of Decision Making:
• Decision Making Under Diff
Conditions:
• Steps In The Decision Making
Process:

3.  Decision-Making Process:
 The sequence of events taken by management to solve the problems
 A systematic process.
 Analysis reveals that virtually every
manager makes decisions
 This points to decision-making as the
common function of managers
 Some writers have used the term
"decision-maker" in place of manager

4. Linear Thinking:
 Each problem has a single solution, will only affect the problem area,
not the rest of the organization,
 Once implemented, will remain valid and should be evaluated only for
how well it solves the problem.
 Problems are conceived of as discrete, singular, and unique.
Fast-food restaurants
Not an effective
Problems with this type…

5. Systems Thinking:
 More broad approach to problem-solving.
 Problems are complex and related to a situation
 Solutions not only solve the problem but will also impact on the rest of
the organization
 Situations change  problems evolve  and new solutions are necessary

6.  Programmed Decisions:
Characterize those problems that are
 Well understood
 Highly structured
 Routine & Repetitive and
 That lend to systematic procedures and rules.
Each time decision is made  similar to
every other time.
May lend themselves to linear thinking
Use of Artificial Intelligence (AI)

7.  Nonprogrammed Decisions:
Nonprogrammed decisions are those problems that are
 Not well understood
 Not highly structured
 Tend to be unique
 And do not lend to routine or systematic procedures.
Happens so rarely
Rely heavily on the decision-making abilities of managers
There is no routine solution available
Use of data from past problems

8.  Strategic
 Administrative
 Operational
 Strategic Decision-Making:
 Determine the goals of the entire organization, its
purpose and direction.
 The task of top management & has the "big picture"
 How relate to external environments
 Entire business  must be made at the highest level
 Goals are not very specific & nonprogrammer in nature
 E.g To produce a breakfast or to enter a new market

9.  Administrative Decision-Making:
 Those made on a lower level
 Usually made by midlevel management
 concerns the development of tactics to accomplish the
strategic goals defined by top management.
 specific & departmental.
 E.g To produce a specific kind of cereal, in this case a
fruit-and-fiber breakfast cereal.

10.  Operational Decision-Making:
 Made on the lowest or supervisory level
 Concerns the course of daily operations
 determine the manner in which operations are conducted
 Most effective and efficient way to accomplish the
goals stated on the administrative level.
 E.g breakfast cereal, to produce each week 10,000 boxes
holding 12 ounces.

12. As there are different kinds of decisions, there are different kinds of
decision-making styles.
 Types Of Manager On The Basis Of Styles Of Decision Making:
 The "Smoother" or Problem Avoider:
 The Problem Solver:
 The Problem Seeker:

13.  The Smoother or Problem Avoider (PA) :
 The PA seeks to preserve the status quo
 Acts to keep from making changes
 to maintain current conditions
 Difficulty  smooth over or ignore it completely
 PA may appear blind to difficulties
 If the business is dynamic, changing environment
 active approach will be more effective.

14.  The Problem Solver:
• Most common managerial style
• No hesitation to make changes when good and
necessary.
• Expect problems and solve in the normal course of doing
business.
 No prior commitment to make changes
 Accepts conditions of risk and uncertainty.
 Preoccupied & always in a reactive mode.

15.  The Problem Seeker:
 Actively seeks out problems and attempts to deal with them before they
emerge as major difficulties for a business.
 Future planning and contingencies creation are involved
 Believes to anticipate, not merely to react
 Uses the data analysis, to understand the present, to project the future.
 Efficient way to deal with small problems before they become big ones.
 But may lead to a neglect of current needs and situations
Problem Seeker Manager

16.  Conditions Of Certainty:
• Results are known in advance
• No unanticipated results are there
• Decisions made under this are programmed
• Possible in the most simple situations
• Encounters a degree of risk
 Conditions Of Risk:
• Results are not definitely known
• But will probably fall within a known range
• Risk in terms of probability
• A fraction between the two extremes.
• Use past data estimate the probabilities of specific
outcomes

17.  Conditions Of Uncertainty:
 Cannot predict the outcome of a decision
 There is no past data upon which to make a prediction.
 May be due to the following factors:
 too many variables in the situation
 not enough knowledge about the variables or
 both

18. 1) Situational Analysis:
• First examine the data of the current situation.
• External consultant  accurate approach to situation
• Focus on:
 The internal factors (Organizational Audit)
 The external factors (environmental scan)
 Relationship between these two  SWOT analysis

19. 2) Setting Performance Standards:
• Whether the goal is achieved or not
• Accountability

20. 3) Generation Of Alternatives:
• “do something” or “do nothing”.
 Do nothing - If goal is achieving/ Doing creates problems
 Do Something - To creatively generate all sorts of alternatives
• Brainstorming
• Ideas are recorded on a chart or chalkboard
• Selection action alternative  consequence analysis

21. Consequences Evaluation:
 When Implemented  Should be Evaluated
 Best alternative selection
 Does this alternative achieve the organizational goal?
 Any undesirable consequences or side effects?
 Can the organization afford this alternative?

22. 5) Pilot-Testing And Full Implementation:
• Once an alternative is chosen, the alternative (s) must be pilot-tested
• Should not proceed to full implementation
• Final chance to modify (feedback)
• After pilot test, fully implemented
• After a period of time  measured and evaluated.
The decision-making process, complete with a feedback loop

23. • So Be Ready …….