Relevant PPT/Notes:

1. Title: "Decision Making Techniques and Processes" Description: This presentation provides an
overview of various decision-making techniques and processes, including rational decision-
making, intuitive decision-making, and group decision-making. Link: PPT

1.2.2 Decision-Making Techniques and Processes:

Decision-making is a crucial aspect of organizational management. Effective decision-making techniques

and processes help leaders and managers make informed choices that align with organizational goals
and objectives. Here are some commonly used decision-making techniques and processes:

Rational Decision-Making: This approach involves a systematic and logical analysis of available
information to make decisions. It typically follows a structured process that includes identifying the
problem, gathering relevant data, evaluating alternatives, and selecting the best option based on
rational criteria.

Intuitive Decision-Making: Intuition refers to the ability to make decisions based on instincts,
experience, and gut feelings. Intuitive decision-making relies on pattern recognition and tacit
knowledge, often used in situations where time is limited or information is incomplete.

Decision Trees: Decision trees are graphical representations of decision points and possible outcomes.
They provide a visual framework for evaluating alternatives and their potential consequences. Decision
trees help in analyzing complex decisions with multiple variables and uncertainties.

Cost-Benefit Analysis: Cost-benefit analysis involves comparing the costs and benefits associated with
different alternatives. It helps in assessing the financial and non-financial implications of decisions and
determining the option that offers the most favorable ratio of benefits to costs.

SWOT Analysis: SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a framework used to
evaluate the internal strengths and weaknesses of an organization, as well as the external opportunities
and threats it faces. SWOT analysis assists in identifying factors that may influence decision outcomes
and supports strategic decision-making.

Decision-Making Models: Decision-making models provide a structured approach for making complex
decisions. Examples include the rational decision-making model, which involves a step-by-step process,
and the Vroom-Yetton-Jago model, which considers factors such as decision significance, time
constraints, and decision acceptance in selecting the appropriate decision-making style.

Group Decision-Making: Group decision-making involves multiple individuals contributing to the

decision-making process. Techniques such as brainstorming, consensus-building, and Delphi method can
be employed to facilitate collaborative decision-making, promote diverse perspectives, and enhance the
quality of decisions.

Decision Support Systems (DSS): Decision support systems are computer-based tools that assist
decision-makers in analyzing complex problems and generating insights. DSS leverage data, models, and
algorithms to provide relevant information and assist in decision-making processes.

The selection of a decision-making technique or process depends on various factors such as the nature
of the problem, available information, time constraints, and the desired level of participation. Effective
decision-making involves considering multiple perspectives, analyzing alternatives, and evaluating
potential risks and benefits to arrive at the best possible decision for the organization.

Process of Decision-making

The process of decision-making involves several steps that help individuals or groups make informed
choices. Here is a typical process of decision-making:

1. Identify the Decision: The first step is to clearly identify the decision that needs to be made. This
involves understanding the problem or opportunity that requires a decision and defining the
desired outcome.

2. Gather Relevant Information: In this step, you gather all the necessary information related to
the decision. This may involve conducting research, collecting data, seeking advice or input from
experts, and considering different perspectives.

3. Identify Alternatives: Generate a list of possible options or alternatives that could potentially
address the problem or achieve the desired outcome. It's important to consider a range of
alternatives to ensure a comprehensive evaluation.

4. Evaluate Alternatives: Assess the advantages, disadvantages, risks, and potential outcomes of
each alternative. This may involve using decision-making techniques such as cost-benefit
analysis, SWOT analysis, or other relevant frameworks to compare and evaluate the
alternatives.

5. Make a Decision: Based on the evaluation of alternatives, select the option that appears to be
the most favorable or appropriate. Consider the information, analysis, and any relevant criteria
or priorities established during the process.
 6. Take Action: Once the decision is made, it's time to implement the chosen alternative. Develop
an action plan, allocate necessary resources, and communicate the decision to those involved.
Consider any potential challenges or risks that may arise during implementation.

7. Evaluate the Decision: After the decision has been implemented, evaluate its effectiveness and
impact. Assess whether the desired outcomes are being achieved and if any adjustments or
modifications are needed.

8. Learn and Improve: Reflect on the decision-making process and outcomes to identify lessons
learned. Use this knowledge to improve future decision-making processes and enhance
decision-making skills.

It's important to note that decision-making is not always a linear process, and steps may be revisited or
adapted based on new information or changing circumstances. Additionally, involving stakeholders,
seeking input, and considering ethical considerations are also important aspects of the decision-making
process.

Reading Material:

1. Title: "Thinking, Fast and Slow" Author: Daniel Kahneman Link: Amazon

2. Title: "Decision Making: Uncertainty, Imperfection, Deliberation, and Scalability" Author: John G.
Wicks and Charles M. Weber Link: PDF

Relevant Book Readings:

1. Title: "Thinking, Fast and Slow" Author: Daniel Kahneman Link: Amazon

2. Title: "Smart Choices: A Practical Guide to Making Better Decisions" Authors: John S. Hammond,
Ralph L. Keeney, and Howard Raiffa Link: Amazon

Relevant Videos:

1. Title: "The Art of Decision Making" Description: This video explores the art of decision-making
and provides insights into effective decision-making techniques. Link: YouTube

2. Title: "Rational vs. Intuitive Decision Making" Description: This video compares rational decision-
making with intuitive decision-making and discusses their respective advantages and limitations.
Link: YouTube

TEXTBOOKS

T1 Stephen Robbins (Author), Timothy Judge (Author), 2019, Essentials of Organizational

Behavior, 14 Edition, , Pearson Education, India, ISBN: 978-0134523859

T2 George, J. and Jones, G.R. 2109. Understanding and Managing Organization Behaviour.
5thEdition,Pearson Education, India, ISBN:9788131724965.
Reference Books:

R1 Parsad L.M., 2019 . Principles and Practices of Management, 10 th Edition, S. Chand

Publication, India, ISBN: 978-93-5161-181-3

R2 Aswathappa, A. 2019. Organizational Behaviour – Text Cases and Games,

13thEdition,Himalayan Publishing House, India. ISBN: 978935990887.

R3 Luthans Fred, Organisational Behaviour, 12 th Edition, McGraw Hill Book Co, New Delhi.