Name- RINI GAUTAM

Roll No. MBA/10090/19

Q. Modern decision making is highly structured, discuss.

Decision making is the process of making choices by identifying a

decision, gathering information, and assessing alternative resolutions.

Using a step-by-step decision-making process can help you make more

deliberate, thoughtful decisions by organizing relevant information and

defining alternatives. This approach increases the chances that you will

choose the most satisfying alternative possible.

Decision-making has become a complex problem. A number of

techniques are available which help in taking decisions. The nature and

significance of decision will determine the type of technique to be used.

The selection of appropriate technique depends upon the judgment of

decision maker. The decision making techniques can be classified into :-

 Traditional Method

 Modern Method

Traditional Method
This method of decision making is also known as the method of

symptomatic diagnosis. In the same manner, the marketing managers

take decisions on the basis of their experiences, knowledge and

intuition. Thus, in this method no scientific analysis involves.

Modern Techniques for Programmed Decisions

A programmed decision is used to solve routine, repetitive but complex

problems. These techniques are also called as Quantitative Techniques.

The managers working at lower-level of management make

these decisions.( Programmed Decision Making Techniques.)

Modern business is facing drastic changes in working. The decision-

making is becoming more and more complex these days. The changing

and challenging business environment requires special attention for

decision making process.

Modern decision making is structured because of following reasons:-

1. You’ll Make More Confident Decisions

Once you begin collecting and analyzing data, you’re likely to find that

it’s easier to reach a confident decision about virtually any business

challenge, whether you’re deciding to launch or discontinue a product,

adjust your marketing message, branch into a new market, or something

else entirely.
2. You’ll Become More Proactive

When you first implement a data-driven decision-making process, it’s

likely to be reactionary in nature. The data tells a story, which you and

your organization must then react to.While this is valuable in its own

right, it’s not the only role that data and analysis can play within your

business. Given enough practice and the right types and quantities of

data, it’s possible to leverage it in a more proactive way—for example

by identifying business opportunities before your competition does, or

by detecting threats before they grow too serious.

3. You Can Realize Cost Savings

There are many reasons a business might choose to invest in a big data

initiative and aim to become more data-driven in its processes. One of

the most impactful initiatives, according to the survey, is using data to

decrease expenses. Of the organizations which began projects designed

to decrease expenses, more than 49 percent have seen value from their

projects. Other initiatives have shown more mixed results.

4. Better Communication Means

It is a fact that modern technology has replaced the old technology. And

we cannot imagine our lives without this replacement. Letters were the

most common mean of communication less than a century ago, but now

no one would even think of writing a letter because why prefer a

parchment on a video call? Instant messaging and sharing of photos and

videos was never so easy before. We have to accept that it’s only the use

of technology, which makes it harmful otherwise nothing can beat the

level of comfort in our lives because of technology.

There are other Modern techniques as well which are used frequently

in today’s decision making domain, and they provide a structured

approach for decision making in IT enabled business environment.

(a) Heuristic Techniques:

This technique is based on the assumption that in a complex and

changing business situation strategic problems cannot be solved by

applying rational and scientific techniques. In an uncertain environment

and conflicting interests the problem will have to be fragmented into

small components for taking a realistic view. 

By splitting the problem into small parts and analyzing each part

separately, a decision can be reached. It is a trial and error method

based on rules of thumb. Heuristic techniques are developed by

managers to deal with various components at different stages.

Computers can easily be used for solving complex and strategic

problems. This technique is a more refined way of trial and error method

because it is developed by applying analytical and creative approach. 

(b) Participative Decision-Making:

It is method of applying democratic means for decision making process.

In traditional managerial techniques, decisions are taken at top levels of

management and these are intimated to lower levels for

implementation. In participative decision-making, employees at various

levels are involved in making various decisions. When subordinates are

made a part of decision making, it not only helps in getting the

advantage of their practical experience but also helps in implementing

decisions properly. The subordinate staff feels motivated and

encouraged and takes active interest in the working.