Manager as Decision Maker

Some decisions in life.

What will we do after class?

Library Canteen Sit and chat Meet teacher

Where will you work? Whom will you marry?

Approaches to Decision Making

Rational (Logical Approach) Intuitive Approach Unable to decide (Indecisive Approach) Impulsive Approach

Types of decisions
Unstructured decisions Non-routine decisions in which the decision maker must provide judgement, evaluation, and insights into the problem definition; there is no agreed-upon procedure for making such decisions.

Structured decisions Decisions that are repetitive, routine, and have a definite procedure for handling them.

Rational Decision Making - steps

Define the problem. What decision is to be made? Decide. Identify the important criteria for the decision process and identify the desirable result Choose the best alternative Consider all possible alternatives

Calculate the consequences of every alternative by measuring how each criteria is satisfied

Class Case Career decision !

Max Health Fortis Ranbaxy What is your Selection Criteria

Decision (rationale)

Stanley Vance Decision Making

1. Pre determined goals 2. Control action of human beings management is simply the process of decision making

Models of Decision Making Behavior

1 ) Cognitive style Underlying personality dispositions toward the treatment of informationselection of alternativesevaluation of consequences. 2) Systematic decision makers cognitive style that describes people who approach a problem by structuring it in terms of some formal method. 3) Intuitive decision makers Cognitive style that describes people who approach a problem with multiple methods in an unstructured manner using trail and error to find a solution. 4) Organizational models of decision making

Organizational Models of Decision-Making

4.1) Bureaucratic models of decision making Shaped by the organizations Standard Operating Procedures (SOPs).

4.2) Political models of decision making Shaped from competition and bargaining among the organizations interest groups and key leaders.

Environment of Decision Making

Establish the objective .

Agree on the process Involve the right people Allow opinions to be heard Make sure you're asking the right question .

Use creativity tools from the start

Common Difficulties of Decision Making

Uncertainty - Many facts may not be known. Complexity - You have to consider many interrelated factors. High-risk consequences - The impact of the decision may be significant. Alternatives - Each has its own set of uncertainties and consequences. Interpersonal issues - It can be difficult to predict how other people will react.

RECAP
1- Introduction to management and Evolution 2- Theories of management 3- Case Study 4- Planning 5- Organising 6- Leading/directing/motivating 7-Controlling 8-Decision Making 9- Leadership 10- Authority, Power and Influence 11 Organisational Structure 12 Ethics and CSR

Leadership

(Another file)