Decision Making Skills

Kavindra Kumar Singh

Assistant Professor IT IILM GSM, Greater Noida

Decision Making Skills

Simple Decision

Complex Decision

Is this report ready to send to my boss now?

Which of these candidates should I select for the job?

Issues with Complex Decision

Uncertainty: Many facts may not be known.

Complexity: You have to consider many interrelated factors.

High Risk Consequences: The impact of decision may be significant.

Alternative: Each has its own set of uncertainties and consequences.

Interpersonal Issues: It can be difficult to predict how other people will react.

A Systematic Approach to Decision Making

A logical and systematic decision making process helps you address the critical element that result in a good decision.

6 Steps to Making an Effective Decision

1. Create a constructive environment
External Environment (PEST Analysis)
Internal Environment (Vroom-Yetton-Jago Model)

2. Generate good alternatives

Brain Storming, Crawford Slip Writing Technique, /Charette Procedure

3. Explore these alternatives

Decision Making under risk and uncertainty (Hurwicz Law)

Grid Analysis (or Decision Matirx), Paired Comparison Analysis, Decision Tree Blindspot Analysis

4. Choose the best alternatives

5. Check your decision 6. Communicate your decision, and take action

Step1: Create a constructive environment

Establish the objective Agree on the process Involve the right people

Define what you want? Know how the final decision will be made? Vroom-Jago Model
Typically a team of 5-7 people.

Stakeholder Analysis

Encourage participants to Allow opinions to be heard contribute to the discussions, debates and analysis without any fear of rejection from the group. Ask yourself whether this is really the true issue.

Stepladder Technique

Make sure you are asking the right question

5 Whys Technique

Use creativity tools from the start

Thinking from a different perspective

Vroom-Yetton-Jago Model
It is used for complex decision and it is long winded.

This model was originally described by Victor Vroom and Philip Yetton in their 1973 book titled Leadership and Decision Making.
Later in 1988, Vroom and Arthur Jago, replaced the decision tree system of the original model with an expert system based on Mathematics.

Vroom-Yetton-Jago Model
Style (3)
Process (6)

Autocratic
Collaborative

Autocratic 1 (A1)

Consultative Manager makes the decision and inform others of it.

Manager gathers information from the team and other and then make the decision.

Manager and his team work together to reach a consensus.

Autocratic 2 (A2)

Consultative 1 (C1)

Consultative 2 (C2)

Group (G2)

1. Is the quality of decision important? 2. Is subordinate commitment important to the decision? 3. Do you have enough information to make the decision on your own? 4. Is the problem well structured? 5. If you made the decision yourself, would the team support it? 6. Does the team share organizational goals? 7. Is conflict amongst the team over the decision? Yes

Yes

No

No

Yes

No

A1

Yes

No

Yes A1

No

Yes

No

Yes

No C2

Yes
A2

No

Yes

No C2

Yes

No

Yes A1

No

G2

Yes

No C2

G2

Yes
A2

No

Yes

Yes
C1

No
A2

Yes G2

No C2

A1: Manager solves the problem alone.

A2: Manager obtains necessary information from subordinates and then make the decision. C1: Manager shares the problem with relevant subordinates and then makes the decision. C2: Manager shares the problem with subordinates in a group meeting, and then makes the decision. G2: It is a group decision process where the manager and subordinates aim to reach consensus on the decision as a group.