Divya Chhabra
GBPUA&T, Pantnagar
WHAT DOES THIS PICTURE
DEPICTS ??
 Square wheels at the place of round wheels
 More human resource
 Round wheels in the cart
WRONG DECISIONS
 Definition
 Recognising the requirement of decision
 Characteristics of decision making
 Significance of decision making
 Process of decision making
 Techniques used in decision making
 Types of decision making
 Styles of decision making
 Levels of decision making
 Decision = choice made from available alternatives
 Decision Making = process of identifying problems
and opportunities and resolving them
 “Decision-making is the selection based on some criteria
from two or more possible alternatives.”
—George R.Terry
•situation in which organizational
accomplishment have failed to meet
established goals
PROBLEM
•situation in which managers see potential
in organizational accomplishments that
exceed current goals.
OPPORTUNITY
 Rational Thinking
 Process
 Selective
 Purposive
 Commitment
 Evaluation:
1. Evaluation of alternatives
2. Evaluation of results
 Pervasive Function : done at all levels i.e. top, level,
middle level and operating level.
 Indispensable Component: It determines all
management functions and covers every part of the
organizational structure.
 Evaluation Of Managerial Function
 Selection Of Best Alternatives
 Establishment Of Plans And Policies
 Successful Operation Of Business
 Pros and Cons- The manager usually chooses the
alternative with the strongest pros and the weakest cons
 Cost Benefit- involves evaluating each alternative on its
monetary costs and benefits. This means that the net
present value of each alternative needs to be calculated,
and the alternative with the highest net present value is
selected.
 Other decision-making techniques include the
lexicographic and scientific methods.
1. PROGRAMMED DECISIONS:
 Programmed decisions are routine and repetitive
 the organization typically develops specific ways to
handle them.
2. NON PROGRAMMED DECISIONS:
 Non programmed decisions are typically one shot
decisions that are usually less structured than
programmed decision.
3. Major and minor decisions:
 some decisions are considerably more important than
others and are prioritized.
4. Organizational and personal decision:
 Organizational decision is taken by top executives for
official purpose and affect the organizational activities
directly.
 Personal decisions are concerned to an employee.
Decision Styles
 Differences among people with respect to
how they perceive problems and make
decisions
 Not all managers make decisions the same
– Directive style
– Analytical style
– Conceptual style
– Behavioral style
14
Directive Style
 People who prefer simple, clear-cut
solutions to problems
 Make decisions quickly
 May consider only one or two
alternatives
 Efficient and rational
 Prefer rules or procedures
15
Analytical Style
 Complex solutions based on as much
data as they can gather
 Carefully consider alternatives
 Base decision on objective, rational data
from management control systems and
other sources
 Search for best possible decision based
on information available
16
Conceptual Style
 Consider a broad amount of information
 More socially oriented than analytical style
 Like to talk to others about the problem and
possible solutions
 Consider many broad alternatives
 Relay on information from people and systems
 Solve problems creatively
17
Behavioral Style
 Have a deep concern for others as individuals
 Like to talk to people one-on-one
 Understand their feelings about the problem
and the effect of a given decision upon them
 Concerned with the personal development of
others
 May make decisions to help others achieve their
goals
 Leadership- No matter who represents the leadership of an
organization, he will ultimately be responsible for a decision that is
made at any level.
 Management Teams-affect daily operations of an organization. Items
such as staffing needs, work flow processes, resources and the handling
of day-to-day events fall on the shoulders of managers.
 Committees - for particular projects or issues and require sufficient time
for research and evaluation. An organization chooses committee
members based on expertise in the subject.
 Group Consensus-Feedback from all levels of the business can garner
different perspectives that will help leaders make a more educated
decision.
 Individual- Decisions made by an individual are often a reaction to a
situation that is perceived to be an emergency.
You must have tried such ways to solve that
puzzle.. Isn’t??
Correct solution..
Decision making

Decision making

  • 1.
  • 2.
    WHAT DOES THISPICTURE DEPICTS ??
  • 3.
     Square wheelsat the place of round wheels  More human resource  Round wheels in the cart WRONG DECISIONS
  • 4.
     Definition  Recognisingthe requirement of decision  Characteristics of decision making  Significance of decision making  Process of decision making  Techniques used in decision making  Types of decision making  Styles of decision making  Levels of decision making
  • 5.
     Decision =choice made from available alternatives  Decision Making = process of identifying problems and opportunities and resolving them  “Decision-making is the selection based on some criteria from two or more possible alternatives.” —George R.Terry
  • 6.
    •situation in whichorganizational accomplishment have failed to meet established goals PROBLEM •situation in which managers see potential in organizational accomplishments that exceed current goals. OPPORTUNITY
  • 7.
     Rational Thinking Process  Selective  Purposive  Commitment  Evaluation: 1. Evaluation of alternatives 2. Evaluation of results
  • 8.
     Pervasive Function: done at all levels i.e. top, level, middle level and operating level.  Indispensable Component: It determines all management functions and covers every part of the organizational structure.  Evaluation Of Managerial Function  Selection Of Best Alternatives  Establishment Of Plans And Policies  Successful Operation Of Business
  • 10.
     Pros andCons- The manager usually chooses the alternative with the strongest pros and the weakest cons  Cost Benefit- involves evaluating each alternative on its monetary costs and benefits. This means that the net present value of each alternative needs to be calculated, and the alternative with the highest net present value is selected.  Other decision-making techniques include the lexicographic and scientific methods.
  • 11.
    1. PROGRAMMED DECISIONS: Programmed decisions are routine and repetitive  the organization typically develops specific ways to handle them. 2. NON PROGRAMMED DECISIONS:  Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.
  • 12.
    3. Major andminor decisions:  some decisions are considerably more important than others and are prioritized. 4. Organizational and personal decision:  Organizational decision is taken by top executives for official purpose and affect the organizational activities directly.  Personal decisions are concerned to an employee.
  • 13.
    Decision Styles  Differencesamong people with respect to how they perceive problems and make decisions  Not all managers make decisions the same – Directive style – Analytical style – Conceptual style – Behavioral style
  • 14.
    14 Directive Style  Peoplewho prefer simple, clear-cut solutions to problems  Make decisions quickly  May consider only one or two alternatives  Efficient and rational  Prefer rules or procedures
  • 15.
    15 Analytical Style  Complexsolutions based on as much data as they can gather  Carefully consider alternatives  Base decision on objective, rational data from management control systems and other sources  Search for best possible decision based on information available
  • 16.
    16 Conceptual Style  Considera broad amount of information  More socially oriented than analytical style  Like to talk to others about the problem and possible solutions  Consider many broad alternatives  Relay on information from people and systems  Solve problems creatively
  • 17.
    17 Behavioral Style  Havea deep concern for others as individuals  Like to talk to people one-on-one  Understand their feelings about the problem and the effect of a given decision upon them  Concerned with the personal development of others  May make decisions to help others achieve their goals
  • 18.
     Leadership- Nomatter who represents the leadership of an organization, he will ultimately be responsible for a decision that is made at any level.  Management Teams-affect daily operations of an organization. Items such as staffing needs, work flow processes, resources and the handling of day-to-day events fall on the shoulders of managers.  Committees - for particular projects or issues and require sufficient time for research and evaluation. An organization chooses committee members based on expertise in the subject.  Group Consensus-Feedback from all levels of the business can garner different perspectives that will help leaders make a more educated decision.  Individual- Decisions made by an individual are often a reaction to a situation that is perceived to be an emergency.
  • 20.
    You must havetried such ways to solve that puzzle.. Isn’t??
  • 21.