DECISION MAKING

Nagananda.A
Training and Placement officer.
 DEFINITION

A process to arrive at a decision by which an

individual or organizations selects one position from
the several alternatives
Three aspects
▪ Cognition: Mind and Knowledge
▪ Conation : Action of mind implied by such words as
willing, desire, aversion
▪Affectation: Aspect of mind associated with emotions
 FEATURES

▪ Implies more than one options.

▪ Decision maker has option and freedom to
choose
▪ May not be rational but may be judgmental
▪ Goal oriented.
 TYPES

▪ Programmed (Structured)
▪ Non- programmed (Unstructured)
▪ Strategic
▪ Tactical
 PROGRAMMED (STRUCTURED)
▪ Structured Problem
▪ Routine and recitative
▪ Within framework of organization
▪ Easy to make
▪ At lower levels in the organization
▪ Higher levels of technical skills and HR
skills as compared to Conceptual skills
▪ Outcome is deterministic
 NON- PROGRAMMED (UNSTRUCTURED)

▪ Unstructured Problem
▪ Unique unusual problem (Growth decisions)
▪ Unique solutions specific to environment
▪ Non-recurring ( What after X/ XII/ Grad)
▪ Readymade solutions not available
 NON- PROGRAMMED (UNSTRUCTURED)…

▪ Decisions of high importance

▪ Long term consequences
▪ Higher levels in the organization
▪ More conceptual skills as compared to other
skills
▪ Outcome is probabilistic in nature (risk)
 STRATEGIC DECISION
▪ Allocation of resources and contributes to the
achievement of organizational goals
▪ Affects major part or whole organization
▪ Contributes directly to the achievement if
organizational goals
▪ May involve major changes (Policies,
expansion, diversification, product mix,
retrenchment)
 STRATEGIC DECISION
▪ Three parts
🞤Action element (Plan ./ Action)
🞤Result element (Results)
🞤Commitment element (Responsibility /
Accountability)
▪ Non programmed (Made under partial
ignorance)
▪ Higher levels of management
 TACTICAL DECISION

▪ Concerns day to day activities and within

the organizational rules and regulations
▪ Very frequent in nature (Day to Day)
▪ Most programmed one
▪ Outcome is short term nature and affects
narrow part of organization
▪ Lower levels of management
 DECISION MAKING PROCESS

1. Specific objectives (Goal directed)

2. Identify Problem( Analysis / Diagnosis/
Symptoms)
3. Search for alternatives (past experience/
creative ideas / practice followed by others)
4. Evaluate alternatives(Group similar /
constraints)
 DECISION MAKING PROCESS

5. Choice of alternatives( experience /

experiment / research)
6. Action( implementation / communication to
subordinates / acceptance / support)
7. Result ( Corresponds with objectives /
indicates proper DM process and
implementation)
8. Feedback to specific objectives
 EFFECTIVE DECISION
▪ Action oriented
▪ Goal directed
▪ Efficiency in implementation (External and
internal context)
🞤Viability(practical and useful ) of decision
🞤Congruency between prediction and reality,
viability of action
🞤Attraction of the venture ( enthusiasm / skill /
capability)
 INDIVIDUAL V/S GROUP DECISION (FACTORS)

▪ Nature of the problem (structural / tactical)

▪ Quality of the decision
▪ Time constraint
▪ Cost constraint
▪ Climate for decision making
▪ Legal requirements
 IQ, EQ, SQ

▪ IQ: Intelligence to extract relevant data and

analysis for proper decision , positive
science
▪ EQ: Rational with a human approach , (not
impulsive , biased, emotional)
▪ SQ: holistic approach, Normative science,
long term consequences
 THINKING (IN AND OUT OF BOX)

▪ Thinking in the box important for in depth

analysis, structured problem e.g. debug a
program, fault finding in equipments
▪ Thinking out of box for unstructured
problems novel solutions, innovative and
creative ideas
▪ Combination for being leader in the field,
trend setter, role models etc.
 BARRIERS
High
Confusion
Moderate

Too little Appropriate Too much

Low

Low Moderate High

Information
ANY QUESTION?
 BEWARE AND BE AWARE!

Paralysis by Analysis!!!
THANK YOU