DECISION MAKING

Manager is oriented towards decisions rather than towards

performing the actions personally; the actions are carried out by
others
Decision can be defined as a course of action consciously
chosen from available alternatives for the purpose of achieving
desired results

Decision involves:
Choice from alternatives
Mental process at conscious level
Purposive
Decision Making Process
Steps
1.

Understanding the situation:

Be aware of the factors that set the state for the decision. If time
available allow facts to simmer for a while

2.

Recognition/Identification of the right problem:

Do not jump for right answer without knowing the right problem

3.

Search for and analysis of available alternatives and their

probable consequences: (creative thinking begins)
Mathematical models, theory of probability, economic concepts.
Use of logic is the key to this step
A premise is a statement of the relationship between a cause
and a consequence

If we do A, then B will result, i.e. evaluate the consequences 'desired' and 'undesired' consequences

First:

Desirable to recognize the premise upon which approach is

based

Second:

Test the validity of the premise

Third:

Distinguish between value premise and factual premise

4.

Evaluation/Analysis of alternatives
Time available vs. sophisticated analysis

5.

Selection of the solution

Best solution vs. satisfactory one
Optimization: Decision must be accepted by the organization

6.

Implementation: Design and Monitoring

Decision making by individuals
Decision making by groups

COMMITTEE
Cooperative decision making is a process by which a group attempts
to develop a composite mind
Committee:

Critical factor in successful committees is the

explicit statement by the appointing authority as its
expected functions

Purpose of Committee
1.

Collecting information

2.

Secure support

3.

Make a decision

4.

Negotiate

5.

Stimulate

6.

Distribute information (sharing)

7.

Representation

8.

Coordinate

9.

Train juniors

Advantages of Committees
1.

Opinion of specialists other opinions

2.

Interaction of different departments

3.

Feeling of participation

4.

Training

5.

Representations

6.

Creative thinking (Brainstorming)

Disadvantages of Committee
Costly considering value of time of each member
Normally require longer time; inadvisable if decision has to be
taken promptly
Unwillingness of members to back down from publicly
announced position
Personal antipathy to or excessive respect for the opinions of
particular individuals
Skill in verbal debate
Bandwagon effects
Buck passing may result no one is held responsible for a
decision

Decision Making Process: Role of Creativity

In the decision making process, Creative thinking begins at the stage
of generation of alternatives and continues till the final decision is
made

1.

Creativity is:

The development of new methods of doing things

Ability to be productive through imaginative skills

Thinking process which solves problems that had remained

unsolved earlier

Ability to generate ideas

An essential element for effective planning

Present in almost every individual but the extent to which such

capability is effectively used varies person to person

2.

Who is a Creative thinker?

Who has:
#

Ambition must have a dream

Perseverance used to hard intellectual work

Enthusiasm optimism

Energy stamina

Knowledge both depth and breadth

Desire to use imagination for productive purpose

3.

Some Psychological Requirements of Creative Thinking:

Detachment detach your mind from every day concern and try
to look at the problem from a distance

Involvement then put yourself into the problem and try to put
yourself into other peoples shoes

Deferment dont come to quick solution, it may be premature,

discipline yourself and dont jump to conclusions

Speculation try to think of alternative possibilities

Objectivity detach yourself from the object as the solution to

the problem emerges

4.

Techniques of Creative Thinking

Logical thinking

Linking together different existing ideas or information

Go through the decision making process

Brainstorming

Synectics or joins together different and apparently irrelevant

elements

5.

Sub process of the Creative Process

Saturation becoming thoroughly familiar with activities and

ideas related to problem

Deliberation analyzing from several view points

Incubation letting inner self or the sub-conscious mind work

Illumination hitting upon bright ideas

Accommodation adapting and refining