LESSON VI

•Decision-making skills and techniques

underpin most aspects of management.
The art of good decision-making is
complex, encompassing a wide range of
personal and interpersonal skills such as
fact finding, logical thinking, analytical
ability, sensitivity to others, creativity, and
assertiveness.
 1. IMPORTANCE OF DECISION-
MAKING
Deciding something means making a choice or
coming to a conclusion and neither of those things is
easy.
Decision is a choice between two or more options/
alternatives.
 It is the act or process of deciding, a determination
arrived at after careful consideration.
It is a determination of either to win or to lose.
Decisions involve a commitment to action; and the
hardest step in achieving anything is making a true
commitment.
 2. KINDS OF DECISIONS
(THOMPSON, J.L 1997)
SIX KINDS OF DECISION

OPERATIONAL DECISION
This is concerned with how the different
functions of the organization, such as marketing,
production, finance,, etc. will contribute to it’s
strategic plan.
STRATEGIC DECISION
the decision at this level is likely concerned
with the scope of the organization’s activities.
ROUTINE DECISION
this is an ordinary decision on a wide
range of issues. The decisions are left to one
person, usually the leader.

URGENT DECISION
This is a decision intended for some
problems that occur rapidly and may cause
serious consequences if not dealt with
urgency.
PROBLEMATIC DECISION
this decision must be taken when a difficulty has
emerged and there is no obvious solution. Experts from
outside the team may be called to give advice.

CONSULTATIVE DECISION
this is a decision that involves those who are
affected by the results of decision. Consulting other
people from outside the organization means inviting
others to serve as consultant.
 3. DECISION-MAKING
APPROACHES
• There are two (2) main approaches to decision-making
that are linked to McGregor’s x and Y Theories.
a.Authoritarian Approach-Leaders assume the
authority to make decisions alone to pass the down
the line for implementation.
b.Democratic Approach–-the responsibility for
decision-making is shared between the leader and
members of the team.
 4. KEY STEPS IN DECISION-MAKING
BY SYSTEMATIC APPROACH
a. Setting Objectives –-define the purpose of the decision
and consider what outcomes or objectives it will achieve.
b. Collecting Information –have sufficient information for the
choices you need to make.
c. Identifying Alternative Solution –look at all possible options;
some are obvious, others have to be logically deduced,
and others require a more creative approach.
d. Evaluating Options –this involves determining the extent to
which the decision options meet the decision objectives.
e. Selecting the Best Option --after the evaluation, the ‘best’
option is selected using anyone of a number of techniques
or approaches.
 5. INVOLVEMENT IN DECISION
Every group has to make a decision and the way in
which these decisions are made will affect deeply the
commitment of the members to the life and work of
the group.
When the groups cannot make decisions, the
members become very frustrated. Most group need
some skills to practice decision-making so that all the
members discover and learn what helps and what
hinders good decision-making.
Many people are actively involved in making a decision,
we will find out the following;

a.The Plop
Here the group makes a decision by not making a
decision. This is means ‘Not to decide’ is to decide.
Someone makes a suggestion but it is dropped like
a stone into a pond, and no one pays any
attention to it all.
b.The One-Person Decision
This is quickly made, but later when the decider
depends on free or voluntary support from others
to implement it, he may find himself carrying it out
alone.
c. The Handclasp
One person makes a suggestion; another says, ’what a
marvelous idea,’ and without further discussion, the matter is
decided. These decisions are more frequent than one thinks,
and often pass unnoticed at the time, but resentment comes
to the surface later.
d. The clique
This decision is made by a small group who plans beforehand to
get their way.

e. Minority
These decision are not consciously organized as those of the
clique, but a few powerful personalities dominate the group,
often unconsciously, and then later they wonder why the
others are apathetic.
f. Majority Vote
In big group, this is often the most effective way to make a
decision.

g. Silent Consensus
Some groups aim at unanimous decisions. These are good, if
genuine, but they are rarely achieved completely on
important issues.

h. Consensus
This is an agreement, often involving compromise or the
combination of various possibilities, after all opinions have
been heard.
This method does build unity, cooperation and commitment.
 6. DIFFICULTIES IN DECISION-
MAKING
Most of the difficulties encountered by a group in
making decisions center around one or another of the
following factors;
a.fear of Consequences
b.Conflicting Loyalties
c.Interpersonal Conflict
d.Hidden Agenda
e.Blundering Methods
f. Inadequate Leadership
g.Clash of Interests
 7. A SIMPLE GUIDE FOR MAKING
DECISIONS BY CONSENSUS
a. What are we trying to decide? (be sure this is clear to
everyone)
b. What are the different possibilities? (consider as many as
possible. Brainstorming may be useful).
c. How may each possibility work? (Consider the pros and
cons).
d. What suggestion, or a combination of suggestion, do we
choose?
e. What do we need to do to carry out the decision?
f. Who will do what, when, where, and how?
 8. FACTORS WHICH HELP
DECISION-MAKING
a. Clear goal
b. Clear understanding of who has responsibility for the decision
c. Good means of stimulating and sharing ideas (e.g., a code, film or
diagram)
d. Effective leadership and structures to deal with the size of the
group
e. Effective way of testing different suggestions offered.
f. Commitment of the leader to genuine group involving in making
the decision.
g. Agreement beforehand on what procedures will be most
appropriate (e.g., consensus, majority vote, secret ballot, etc.)
 9. HOW EFFECTIVE ARE YOUR
DECISIONS? (SMITH, 5, 1997).
Do you Often Sometimes Never
1. Select the right method of making a
decision?
2. Involve member of your team whenever
you can?
3.Stop and think what you want the
decision to achieve.
4. Take steps to collect all the information
you need to make an important decision?
5. Know how to apply logical thinking when
appropriate?
6. Know how to apply creative thinking
when appropriate?

7. Use effective ways of weighing up the

options and selecting the most suitable
one?
8. Make sure everyone knows about a
decision that effect them?

9. Check to see whether a decision is

bringing the required results?

10. Admit that you are wrong if the

decision turns out to be a bad one?
• If you check “Sometimes” or “Never” for;
a. Question 1 and 2, you have to look carefully for
information on different styles of decision-
making.
b. Question 3 and 4, you have to find out more
about setting objectives and collecting
information.
c. Question 4 and 6, you have to find out how to
generate a range of options to arrive at a
decision.
d. Question 7,8,9 and 10, you have to find out how
to evaluate options and implement decisions.
 10. IMPLEMENTING AND
MONITORING THE DECISION
A decision is not the end of the process. Act on it and
check whether things are working out as you
anticipated. The important reasons for implementing
and monitoring the decision are as follows:
Monitoring a decision will make your action as
effective as possible.
Decisions often have unforeseen consequences.
Monitoring enables decider to learn from mistakes as
well as from successes.
Decision-making ability grows with experience.
Monitoring helps to improve decision-making skills.