Decision Making Process

MODULE-4 : 

MODULE-4 PRSENTED BY: bosu DECISION MAKING PROCESS

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CONTENT: Decision making Definition and Process(steps) Groups and Types of Groups Types of Groups, Group Dynamics Reasons for Joining Group Group Decision Making Advantages and Disadvantages, Individual Decision Making Approaches S.Hemanth Kumar A.Vinod Kumar Ch.S.M.Bosu Babu T.Sudheer Kumar B.Hemanth M.Ramakrishna V.Amarnath Naidu V.Bala Factors Affecting Group, Stages of Group Formation Techniques

DECISION : 

DECISION Choices among two or more alternatives

-in an organization all members together take decision. : 

-in an organization all members together take decision.

“Decision making” : 

“Decision making” Definition: The process of examining your possibilities options, comparing them, and choosing a course of action.

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Lack of clarity Decision making is a key role for any manager or leader. Many people struggle when it comes to taking decisions. This might be due to: Fear of failure Lack of a structured approach

EIGHT STEPS DECISION MAKING PROCESS : 

EIGHT STEPS DECISION MAKING PROCESS

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Identification of a problem Identification of decision criteria Allocation of Weights to criteria Development of alternatives Selection of alternatives Implementation of the alternative Evaluation of decision effectiveness Analysis of alternatives

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weight the criteria to give them appropriate priority in the decision DECISION MAKING PROCESS Eight-step process Step 1 - Identifying a Problem what the problem is that you need to take a decision on. Step 2 - Identifying Decision Criteria: what is required in making a decision Step 3 - Allocating Weights to the criteria

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DECISION MAKING PROCESS Step 4 – Developing Alternatives The improve alternatives that could resolve the problem. Step 5 – Analyzing alternatives Each alternative is evaluated against the criteria. Step 6 -Selecting an alternative Choosing the best alternative from among those select

DECISION MAKINGPROCESS : 

DECISION MAKINGPROCESS Determine whether the problem is resolved decision may fail if it is not implemented properly Step 7 – Implementing the Alternative Conveying the decision to those affected by it and getting their commitment to it Step 8 - Evaluating Decision Effectiveness

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What is a group? Two or more individuals interacting who have come together to achieve a particular goal. Two or more interacting individuals with a stable pattern of relationship between them who perceive themselves as a group.

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If a group exists the members: Motivate to join. Perceive the group as a unified unit of interacting people. Contribute in various degrees. Have agreements and disagreements, but finally a common outcome.

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Formal Informal GROUPS Command & Task groups Interest &Friendship groups

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FORMAL GROUPS COMMAND GROUPS:- TASK GROUPS:- Established by structure or Hierarchy These are organized for a specific task

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INFORMAL GROUPS INTEREST GROUPS:- FRIENDSHIP GROUPS:- People seeking to achieve a common goal to their membership in an organization People like others company and share their feelings & emotions

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FACTORS AFFECTING GROUP PERFORAMANCE COMPOSITION SIZE COHESIVENESS NORMS

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Heterogeneous group with diverse abilities and information more effective. COMPOSITION More conflict laden and less expedient- more deliberate. Composition of a group acts as a predictor of turn over.

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SIZE For completion of a particular task( something productive)- smaller group For problem solving a larger group more effective Individual becomes a free rider.

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Acceptable standards of behavior, shared by group members. These define what ought/ought not to be done by members. Norms differ from group to group. These could be formally or informally laid down. NORMS

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Represents “bonding” among people Similar ideas, views and thoughts Greater strength-Powerful decisions Difficult to form-Rarely seen COHESIVENESS

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STAGES OF GROUP FORMATION Forming Storming Performing Norming Adjourning

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STAGES OF GROUP FORMATION STAGE -I CONFUSION- not certain about purpose, task and leadership. FORMING:

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STAGES OF GROUP FORMATION STAGE -II STORMING: conflict and confrontation (disagreements).

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STAGES OF GROUP FORMATION settling down, coop, collaboration STAGE -III NORMING:

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STAGES OF GROUP FORMATION STAGE -IV Group fully functional, devoted to task at hand. PERFORMING:

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STAGES OF GROUP FORMATION STAGE-V happy depressed sad embarrassed End of group/ new modified group ADJOURNING:

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GROUP DYNAMICS It is a perspective of: Its structure and processes. How does it function. How does it affect organisation. How does it affect individual members. Internal nature of a group/ composition.

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Reasons for Joining Groups Group reduces insecurity and standing alone syndrome Recognition and status same as that of group Self importance Security : Status : Self-Esteem :

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Reasons for Joining Groups Affiliation : Power : Goal achievement : Fulfills need of affection There is power in number Pool of talent, skills and knowledge

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Group Decision Making Play an important role in organizations Offers the advantage of experience, wide knowledge and mutual support.

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Advantages: Group Decision Making More information than individual Generate a great number of alternatives Increases acceptance and commitment Understand the decision better Greater creativity Capitalize on individual talents

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Group Decision Making Disadvantages Notorious time wasters Create pressures towards conformity Domination by few members in a group Costly People easily avoids responsibility Disagreement may lead to conflict and ill feelings

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Group Decision Making TECHNIQUES:

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Group Decision Making Techniques Brainstorming: People should be allowed to generate as many ideas as possible People interact in a free and uninhibited atmosphere

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Group Decision Making Techniques Synetics: Means “fitting together of diversified elements” Stimulate creative solutions by piecing together different ideas.

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Nominal Group Technique: Group Decision Making Techniques Leader explains the problem to the target members Each member writes his ideas silently and independently Each member presents a single idea Each member presents a single idea Evaluation of ideas Individual voting on priority

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Delphi Technique: Group Decision Making Techniques Procedure for obtaining the consensus of a number of experts. Uses a series of questionnaires

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Individual Decision Making Individuals are assumed to be rational beings Working towards organizational goals

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Approaches: Normative decision theory/classical theory Descriptive decision theory/ behavioral theory The political model Individual Decision Making

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Individual Decision Making Approaches Normative Decision/Classical Decision Theory Decision making is: Goal oriented All choices are known Order of preference Maximum advantage

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Descriptive Decision /Behavioral Decision Theory Individual Decision Making Approaches Proposed by A. Simon Do not have full information Not able to process competitive environmental and technical information No knowledge of all possible alternative solutions and their consequences Do not have sufficient time to make search of alternatives

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The Political model Individual Decision Making Approaches Useful for making non-programmed decisions When conditions are uncertain Information is limited A disagreement among managers to take a particular decision

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CONCLUSION We conclude that “Decision making” is an important requisite of an effective organization. SO ALL FUTURE MANAGERS BE CAREFUL

Thank you : 

Thank you Have a nice day.