Decision making

Deependra Bickram Thapa

98510 99298 deependrathapa6@gmail.com

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“Decision making is a
heart of administration”
Hebert Simon

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Decision making is a
hall mark of a leader

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 Concept
A choice from alternatives: one, two or more
alternatives

A course of action, consciously chosen from

among the available and relevant alternatives
for the purpose of achieving desired
objectives.

“A bridge between the idea and action”

 Samuel Deep

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Types of decision
Policy decision: Long term decision on
organizational goal and performance conduct.

Administrativedecision: Policy
implementation

Ad hoc decision: As and when needed based

on the condition and time.

Programmed decision

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Types of decision
Satisficingdecision: Satisfactory solution
with respect to complex problem
Implicit favorite decision: The decision
maker will already select his/her favorite
alternative, but dramatize to assess the
available alternatives
Intuitive
decision making: Based on rich
experience and done suddenly
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Types of decision
Basic decision: Unique and done one time
and needs long range commitment to
implement.

Routine decision: Every day decision,

repeated and no fundamental impact on
organization

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 Concept
Rational choice of the
available alternatives is a
crux of effective decision
making for solving a problem
or, addressing the concerns
or, using an opportunity.

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 Concept
 Rational
decision making/Rational choice:
1. Goal oriented

2. Thorough knowledge of all alternatives [Capacity

and information to analyze and evaluate alternatives]

3. Clarity on preferences

4. Willingness to select the best alternative for goal

achievement

5. Maximization of outcome by the selected

alternative: Least cost and best outcome.

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 Decision making process

Problem diagnosis
Detecting and recognizing a problem
Identifying the nature of the problem
Defining the problem.
Is there a problem at all?
What is the nature of the problem?
How can the problem be best defined?

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Decision making process: understanding the problem

A doubtful
 or difficult matter requiring a
solution
Something
 hard to understand or accomplish or
deal with.
A discrepancy
 between an existing and a desired
state of affairs

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Decision making process: understanding the problem

Problem solving
involves overcoming
the barriers or obstacles
that prevent the
achievement of goals.
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 Problem analysis tools
 Basic tools:

 SWOT

 PESTEL

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Why to diagnose the problem?
Information [Quality and relevant]
collection for the right understanding of
the problem/concern

Diagnose the need for a decision: This

step diagnoses the right problem. Clarifies
why a decision is needed.

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A typical decision making process
Creation of alternatives with respect to
problem.

Evaluation of the alternatives

Decision indicators
Giving weight to each indicator

Selection of best alternative

Least cost and maximum benefit

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A typical decision making process
Implementation plan

Implementation of the decision

Implementation control (M and E):

Comparing implementation with plan
Taking corrective actions if deviations are
realized.

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 Some decision challenges
Social/relational factors - family, partner,
peer group, advisors: pressures,
expectation, hidden agendas, lack of
understanding
Personal/Emotional - decision making
style, self-confidence, values, anxiety, fear.
Trusting only one source for decision
making
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Some decision challenges
Fear of oversight agencies

Decision avoidance

Lack of sufficient time for a

comprehensive discussion

Feedback not taken seriously

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 Some decision challenges
Good decision makers rarely awarded
and decision avoiders awarded quite
often [Negative reinforcement theory]

Chief executives not providing

guardianship. Quite often scape-
goating phenomenon.

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THANK YOU

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