CONTENTS ON: decision making process, decision making categories, decision making situations, decision making models, decision making styles, participation in decision making.

1. 1MADE BY: ARSHIA TAHIR BS-III

2. DECISION
MAKING
1)CATEGORIES OF
DECISIONS
 Programmed &
non-programmed
2)DECSION MAKING
SITUATIONS
certainty, risk,
uncertainty, ambiguity
3) STEPS IN
DECISION
MAKING4) DECISION MAKING
MODELS
Classical,
adminitrative,political
5) DECISION
MAKING STYLES
Directive,
analytical,
conceptual,
behavioral
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6) PARTICIPATION
IN DEICISON
MAKING

3.  DECISION.
 DECISION MAKING.
 CATEGORIES OF DECISIONS.
 SITUATIONS OF DECISION
MAKING
3MADE BY: ARSHIA TAHIR BS-III

4. DECISION
Choice made from available
alternatives.
4
DECISION
MAKING
Process of identifying
problems and opportunities
and resolving them.
Decision making is not easy
It must be done amid
• ever-changing factors
• unclear information
• conflicting points of viewMADE BY: ARSHIA TAHIR BS-III

5. • Involve problems or situations that have
occurred often.
• Circumstances and solutions are predictable.
• Decisions are made in response to recurring
organizational problems.
PROGRAMMED
DECISIONS
5
• Made in response to problems that have
unique circumstances.
• May provide unpredictable results.
• Situations that have never occurred before.
NON-
PROGRAMMED
DECISIONS
MADE BY: ARSHIA TAHIR BS-III

6. 6
DECISION MAKING UNDER CERTAINTY
DEICISON MAKING UNDER RISK
DEICISION MAKING UNDER UNCETAINTY
DECISION MAKING UNDER AMBIGUITY
MADE BY: ARSHIA TAHIR BS-III

7. CERTAINTY RISK UNCERTAINTY AMBIGUITY
All information
is available
Decision has
clear-cut goals.
Managers know
which goals they
want to achieve.
Most difficult
decision
situation.
Good
information is
available.
Information about
future alternatives
and events is
incomplete.
Goals to be
achieved or
problems to be
solved is
unclear.
Future
outcomes
associated
with each
alternative are
subject to
chance
Managers may
have to come up
with creative goals
and alternatives.
Alternatives
are difficult to
define.
Information
about outcome7MADE BY: ARSHIA TAHIR BS-III

8. 8MADE BY: ARSHIA TAHIR BS-III

9. 9MADE BY: ARSHIA TAHIR BS-III

10. DECISION
MAKING
PROCESS
1) IDENTIFY A
PROBLEM OR
OPPORTUNITY
2) GATHERING
INFORMATION
3)ANALYZE THE
SITUATION
4)DEVELOP
OPTIONS
5) EVALUATION OF
ALTERNATIVES
6) SELECT THE BEST
ALTERNATIVE
7) ACT ON THE
DECISION
8) EVALUATE
THE RESULTS
10MADE BY: ARSHIA TAHIR BS-III

11. Identifying the purpose of decision is based on following reasons:
1) What exactly
is the problem?
2) How the
problem should
be solved?
3) Who are the
affected parties
of the problem?
4) Does the
problem have a
deadline or a
specific time-
line?
The problem and the opportunity is thoroughly analyzed.
IDENTIFY A PROBLEM OR OPPORTUNITY
1
11MADE BY: ARSHIA TAHIR BS-III

12. 2) GATHERING INFORMATION
what is relevant and what is not relevant to the decision?
What do you need to know before you can make a decision, or that will
help you make the right one?
Who knows, who can help, who has the power, and influence to make
this happen ( or to stop it)?
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MADE BY: ARSHIA TAHIR BS-III

13. 3)ANALYZE THE SITUATION
What alternative courses of action may be available to you?
What different interpretations of the data may be possible?
13MADE BY: ARSHIA TAHIR BS-III

14. 14
4) DEVELOP OPTIONS
List down all the ideas/options and be
creative and positive.
Ask ‘WHAT IF’ questions.
Generate all possible solutions to the
problems.
MADE BY: ARSHIA TAHIR BS-III

15. 5) EVALUATION OF ALTERNATIVES
• What criteria should you use to evaluate?
• Evaluate for feasibility, acceptability, and desirability.
• Which alternative will best achieve your objectives?
6) SELECT THE BEST ALTERNATIVE
Explore the provisional best alternative for future possible adverse
consequences.
What problem might it create?
What are the risks of making this decision?
15MADE BY: ARSHIA TAHIR BS-III

16. 7) EXECUTE DECISION
Convert your decision into a plan or a sequence of activities.
Is the decision accepted and supported by colleagues?
8) EVALUATE RESULTS
Evaluate the outcome of your decision.
See whether there is anything you should learn and then correct
in future decision making. This is one of the best practices that
will improve your decision-making skills.
16MADE BY: ARSHIA TAHIR BS-III

17. 17
Depends on the manager’s personal preference
Whether the decision is programmed or non-programmed
Extent to which the decision is characterized by certainty, risk,
uncertainty, or ambiguity
MADE BY: ARSHIA TAHIR BS-III

18. 18MADE BY: ARSHIA TAHIR BS-III

19. 19MADE BY: ARSHIA TAHIR BS-III

20. 20
When faced with a
decision situation,
managers are:
Neither rational
nor objective or
unbiased.
Engage in
colliation
building
It resembles the real
environment in
which managers
operate.
Useful in making
non-programmed
decisions.
Decisions are
complex
MADE BY: ARSHIA TAHIR BS-III

21. CLASSICAL MODEL
Clear-cut problems
and goals.
Conditions of
certainty.
Full information about
alternatives and their
outcomes.
Rational choice by
individual for
maximizing outcomes.
ADMINITRATIVE MODEL
Vague(unclear)
problems and goals.
 Conditions of
uncertainty.
Limited information
about alternatives and
their outcomes.
Satisficing choice for
resolving problems
using intuition(gut
feeling).
POLITICAL MODEL
Conflicting goals.
Conditions of
uncertainty and
ambiguity(unclear).
Inconsistent
(conflicting) viewpoints
Bargaining(negotiate)
and discussion making
among colliation
members.
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MADE BY: ARSHIA TAHIR BS-III

22. 22MADE BY: ARSHIA TAHIR BS-III

23. 23
Decision Style: Differences among people with
respect to how they perceive problems and make
decisions
Not all managers make decisions the same.
MADE BY: ARSHIA TAHIR BS-III

24. 24
SITUATION:
PROGRAMMED
NON-PROGRAMMED
CLASSICAL
ADMINISTRATIVE
POLITICAL
DECISION STEPS
PERSONAL DECISION
STYLE:
DIRECTIVE
ANALYTICAL
CONCEPTUAL
BEHAVIORAL
DECISION CHOICE:
BEST SOLUTION
TO THE PROBLEM.
MADE BY: ARSHIA TAHIR BS-III

25. DIRECTIVE STYLE
Leader is aggressive(forceful)/ autocratic in nature.
The leader does not ask for any suggestions or ideas from outside sources.
They rely on their own internal information, knowledge, experience and
judgment.
Consider few alternatives.
The leader is also completely responsible for the good or bad outcome as a
result of the decision.
Employees have low abilities.
Relies heavily on rules.
Leader maintains total control and ownership of the decision.
Good verbal communicator. 25MADE BY: ARSHIA TAHIR BS-III

26. Leader is innovative and likes to analyze large amounts of data before making a
decision.
They are adaptable and can function well even under unique or challenging
situations.
An analytic decision maker wants to use direct observation, data, and facts when
coming to a decision.
They probably enjoy solving problems.
The decision-making style is due to uncertainty, and lack of information.
Use great care in alternatives and analysis i.e.: What if ?
26MADE BY: ARSHIA TAHIR BS-III

27. 27
CONCEPTUAL STYLE
Conceptual style decision makers like to look at problems from an artistic angle.
They are extremely creative and like to look for solutions that are outside the
box.
They are achievement oriented and like to think far into the future when making
important decisions.
This kind of decision making is for a long term, and subjected to changes.
Look at many alternatives.
Will take risks and try to make decisions that take a broad vision in problem
solving.
Employees have high abilities.
When leader is achievement-oriented, the employees also have high
achievement motivation. MADE BY: ARSHIA TAHIR BS-III

28. 28
Behavioral decision makers like working with a group, democratic in nature.
Very interested in making sure that everyone works well together and avoids
conflict.
Together they attempt to settle differences and negotiate a solution that is
acceptable to all parties.
He makes decision based on what feels right, and what will motivate the team
members to perform( interesting and unstressed tasks)
The decision is communicated clearly and leaves no room for doubt.
Prefer meetings.
MADE BY: ARSHIA TAHIR BS-III

29. 29MADE BY: ARSHIA TAHIR BS-III

30. 30
Helps gauge the appropriate amount of participation
for subordinates in process
●Leader Participation Styles
Five levels of subordinate participation in decision
making ranging from highly autocratic to highly
democratic.
PARTICIPATION IN DECISION MAKING
Vroom-Jago
Model
MADE BY: ARSHIA TAHIR BS-III

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How significant is the decision?
How important is subordinate commitment?
What is the level of the leader’s expertise?
If the leader were to make the decision alone at what level would subordinates
be committed to the decision?
What level is the subordinate’s support for the team or organization’s
objectives?
What relative t is the member’s level of knowledge or expertise to the problem?
How skilled or committed are group members to working together?
MADE BY: ARSHIA TAHIR BS-III

32. 32
Diagnostic Questions
Decision participation depends on the
responses to seven diagnostic questions about
●the problem
●the required level of decision quality
●the importance of having subordinates
commit to the decision
MADE BY: ARSHIA TAHIR BS-III

33. 33
NEW
APPROACHES
FOR
TURBULENT
TIMES
BRAIN STORMING
ENGAGE IN
RIGOROUS
LEARN;
DON’T
PUNISH
KNOW WHEN
TO BELL
PRACTISE THE
FIVE WAYS
MADE BY: ARSHIA TAHIR BS-III

34. 34MADE BY: ARSHIA TAHIR BS-III