VALUE BASED DECISION MAKING Decision: To decide means to come to a conclusion or resolution.

Decision is a choice wherever a person comes to a conclusion about a situation, it represents a course of behaviour, or action about what must or what must not be done. It is the selection of a course of action. from among alternatives to achieve a specific objective or to solve a specific problem.

The Basic areas of Decisions
Theoretical - discovery of truth & knowledge in a rational and scientific way. Socialinterpretive, philanthropic view. It seeks human interaction and considers impact on the group and organization as whole. Aesthetic - artistic, seeks to find form and harmony in a given scenario . Economic – It arises from functional, practical view. Seeks usability and material goods.

Political - Political . .Prestige & Power (often at the expense of others).To make the world a better place. Religious . Based on philosophical and interpretive views.

Managerial decisions are based on the flow of information.Decision Making and Management : A business organization is essentially an information and decision making system. The decision is the point at which • • • Plans Policies and Objectives These are translated into concrete actions. Decision making is the core of planning .

controlling etc. organizing. decision making is always essential.The Importance: In the entire process of management and in each of the management activities. . leading. such as planning.

there are four basic criteria which determine the nature of a decision and the level of authority that should decide. These are :- . A manager reaps a double advantage when he faces a problem and has to find a sound solution. personnel and administration etc. Types of Decisions: According Peter.Decisions are necessary on numerous issues and problems in each area of business. marketing. Drucker. eg production. finance.

    The future of decision and time involved Quality factors entering into decision Whether a decision is rare. . areas or on the business as a whole. routine or repetitive Whether the impact of a decision is on other function.

goals and objectives .STRATEGIC DECISIONS: These are • • • Basic Usually long.term Vital and important Examples: • • diversification and expansion strategies corporate mission.

productivity pricing. Example:     Resource acquisition and development Management training and development Acquisition of equipment and facilities Development of raw material . It concerns structuring of firm's resources to create maximum performance potential. location and size of business. Administrative Decisions.• • major capital expenditure decisions all decisions affecting organization.

Routine Decisions     They are important Repetitive need little thought having few alternatives  programmed decisions .

which involve judgment. These decisions are taken by higher-level managers. certain set policies. .Programmed decisions and non programmed decisions Those which are routine such as adopting standing operating procedures for day today functioning. intuition and creativity . The non programmed decisions are just opposite to that.

Values and Decision-making Decision-making is the fundamental of every managerial situation. The operations researchers analysed problems through quantitative solution . Decision Making Preparatory Action decision making It is experience and knowledge which need to be combined for taking managerial decision.

It has to be law oriented.Experience . fair and proper. .Acquaintance with facts Truths Principles Value based decision has to be just.Personally observing Encountering Undergoing something Knowledge .

• Law has its value because it is socially accepted. . production. Organisational performance involve decision making concerning its function at every stage. •Strong values nurture culture in any organization. •A manager needs to take decision in various issues and fields like marketing. • Values help decide legitimate goal of the organization. personnel and administration. finance.

A value based ethical organization will exhibit the following: For managerial decision making the interplay of both analytic and holistic faculties are necessary .Value based decision will include dignity and respect to the team members Such value based decisions. whether routine or otherwise will encourage employees to use their (a) potentialities. (b) initiatives and ©creativity to the maximum extent in performing their work.

its social behaviour/decision making directly reflects in personal Ethics. Ability for developing effective leadership style requires an understanding of three qualities in .The quality of managerial decision making and skills • can be improved through an understanding and internationalization of the ‘doctrine of karma’ • man Satta (righteous ness) rajas (selfishness) and tama (laziness) When the organization is value based. organizational culture and organizational systems.

Code of Ethics.Symbols. Selection. Faiths. Training . Dress etc Organisational System Structure.The same is depicted as follows : Personalities Beliefs & values Moral development Ethical Framework Socially responsible Decision/ Behaviour Organisational culture Beliefs. Reward System.Slogans. Policies. Rules.Rituals Leaders.

The values are shaped by the (a)organizational environment and (b)nature of business. “Justice” is considered among values as Para mount.An organization consists of large number of individuals with a variety of values. External influence. . nature of business and nature of corporate can influence values and decision making of managers as well. Value system sets normative standards on the basis of which people make their choice of alternative course of action.

and to cultivate interacting values like a) harmony. the following steps have been suggested: . c) patience and understanding in the society. To avoid this.Human Society is a composition of mixed behaviour of individuals and groups. In one hand it ensures security when value system exists. on the other hand it indicates variation as well. b) tolerance.

• Public responsibility and accountability for affecting values must be voluntarily --------------------- consequences assumed by the decision making agencies in the society .• Effective public policy which will emphasize on growth of • interacting values. . and plans of an Organization must be defined and achieved . • Research towards growth of values must be expanded and intensified. Goals.

Sign up to vote on this title
UsefulNot useful