Nature of Decision Making Aang effective decisions, s well as recognizing when aad decision has Been made an quickly responding to mistakes, sa key ingredient in rganzational eMertvenes. [some experts believe that decision making isthe most base and fundamental of al managerl actives. [Adecision making is most closely linked ) with the Planning function. Aowever, it also part of Organizing, eding and Contoling Mn a Recognizing and defining the nature of a decision situation identifying alternative ¥ Choosing the ‘best (most effective) alternative and Putting it into practice What is_Decision Making ? > Decision making is the act of choosing one alternative from among a set of alternatives. We have to first decide that a decision has to be made and then secondly identify a set of feasible alternatives before we select one. Se eS ee |Gloptimize some set of factors such 2s profits, sales, employee welfare ‘and market share oF Minimize oss, expenses or ‘employee turnover oF select the best method for going out of business, laying of ‘employees or terminating a strategic allianceDecision Making Process includes . . . Types of Decisions Managers make decisions about ‘both problems (undesirable situations) and opportunities, (desirable situations) Cutting cost by 10% * Learning thatthe company has profits ‘manager can know for sure ifthe right decision was made. ‘earned higher-than-projected {it may take along time before a finn nary decisions regarding basic ‘operating systems and procedures Programmed decision is one that is roger eonsing Meee Involves those decisions that already * Pharmacy assistant are rained to hhave plan or rule in place and is i ‘dspense medications under the Used foreach slution or : Superson of Pharmacist, Conclusion. nother words, managers ay + Pharmacist and many other have already made such decisions = ‘organizations, used programmed before andit'sa repetitive and 5 ‘eaisons to purchase new supplies routine process.i mt = Most ofthe decisions made by top oe er ofr fae manages involving strategy and Sieermgnenteweng eee crgansaion dsgh arena {Sr loge rot Ptewe A programmed decisions. Managers faced with non programmed dechions must reat - Fata ewe Schone 3 unique, investing peat 4. Every station is unique and rast be maraged Fi ‘amounts of time, energy and sae Terourcesintoexparing he skuation 2 Teale ancy from alvews 3 gelesen on nition and experience ae majoe seems mre factorin there deco. “Decision making * > under certainty 2 *Decision making ZF under risk Saxe “Decision making under uncertainty |or eee A state of certainty ent when a teclon rat ends, wth Featoatleceraty hat the Sermatves are and what Egndtions ae aesocated with each Stemate: {ery few orgaizational decisions, Teer srt made under hese {Te compex and turbulent Crunch bushesees ‘etary as for such Sections iT ea Eieprobabity estate Pern Ye ice omer and ee wes SraBSSy of eta ecbcehDec Metre *Decision making 5 An apron a docson mating al undericetienty) wow on 1 Approach assumes that managers are logical an ratonl *Decision making 1 Approach assumes that managers: decisions willbe inthe best, under risk interests of te organization *Decision making 1 Conditions suggested inthis approach rarely ever, exist under =~ ww uncertainty Q ls managers how they Eimer) O Consist of six (6) steps that keep fats and logic and help guard against inappropriate assumptions and pitfalls. Designed to help the Pharmacist ‘approach a decision rationally i and logicallyBea ec Ri Pane ee + Sometimes decision making must Sh by oor pe Sele oe reflec subjective considerations (tastes, etc.) + Other behavioral aspects include: =] political forces, intuition, escalation of commitment, risk propensity and ties. rdBehavioral Aspects of Decision Making (Pike ns ia remmeneneenciursmaard 2 Salisficing is the tendency to search for I aematives ‘only unt one Is found thet ecuone tv She nate aor @an © pec meets some minimum standard of Sino tosstonn Suficteney. 0 sat econ tare camped nro, we come and 2 Rather than conducting an_ exhaustive search cue for the best possible alterative, decision 2 Bonded tora sages ut econ mats ‘makers tend to Search only ntl they ientiy Soni by bata od ones fn allemative that mee's ‘some minimum Soe a ern Sandard of suficlency Smeg (ike ens Q Coalition ~ sn infrmst aliance of ‘common gal stoedhodes, ‘rectrs, parliament bes, et} (@.Impact of coaition maybe postve or (Managers must ecogrize when toute coations, howto asses they ae seting in the best interest of the ‘rzaizaon and how te contrl thee negative eet(Emenee ns The Classical Model attempts to explain how managers can atleast attempt to be more ‘ational and logical in theie approach to decisions. The Administrative Model can be used by managers to dovelop an understanding of Inherent biases limitations, ies lntuition - ican inate bee about Something, without conscious consideration 1 Deciding to do something becauneit ele right of onehas 2 "huney 1 Feelings based on years of experience and practice making deisons in sar Stuations; may help manager make occasional decisions without going through an ato-z process Pe Coalition -sn iors stance of inavidvals groups formed to achieve i 2 commen goal staan, ‘recs, pariament boc, ec] Impact ofa coaltion may be postive or anager must ecognie when to use acting the best interest ofthe i ‘Srgaiation and now to canta tele rege fe. © © Pee eed + Dection mars must gue Sao eg wn Date seri reat reeWr Political Forces in Decision Making as rpm =v si ess ens “a's aan na Seatac «we ‘ing gamble when aking cGy eo pte cin = vine QP van LET ave soni in Bure fg Seti Sr vs Fag?» Raasttsact ten oibe Area, | Se at