Decision Making Techniques

1. Introduction. Individuals at all in all areas of org make decisions. Some decisions are relatively straightforward and simple. Others are quite complex. Simple decisions usually need a simple decision-making process. But difficult decisions typically involve issues like these Uncertainty,Complexity,High-risk consequences, Alternatives, Interpersonal issues . With these difficulties in mind, the best way to make a complex decision is to through a systematic decision-making process for consistent and high-quality results. 3. Decisions making Process. A logical and systematic decision-making process helps individual to address the critical elements that result in a good decision. By taking an organized approach, ones may do less likely to miss important factors and thereby decisions becomes better and better. There are 08 steps to making an effective decision Identifying the problem. Identification of decision Criteria. I need to select the best quality but affordable car to buy Low Cost, Engine Performance, Maintenance cost, Resale value, Gas mileage in a car Low Cost-------------------10 Engine Performance, ----09 Maintenance cost, -------09 Resale value, -------------06 Gas mileage in a car06 Toyota Nissan Toyota Nissan Toyota Nissan BMW Honda BMW Honda BMW Honda

Allocation of weight to criteria

Development of alternatives. Analyzing of alternatives. Selection of the best alternative.

Implementations of the alternatives. Evaluation of decision Effectiveness

4. Step 1: Identifying the problem.Decisions making process begins with the existence of a problem. More specifically discrepancy between the an existing and a desired state of affairs. 5. Step-2.Identification of decision Criteria. Once a manager is identified a problem, the decision criteria is important to resolve the problem. Managers must endeaviur to determine whats relevant in making the decisions. Criteria Low Cost, Engine Performance, Maintenance cost, Resale value, Gas mileage in a car 6. Step-3. Allocating of weight to criteria. The decision maker must weight the items in order to to give them the correct priority in the decisions. Criteria Low Cost Maintenance cost Engine Performance Resale value Gas mileage in a car Weight 10 09 09 06 06

6. Step 4: Generate Good Alternatives. This step is still critical to making an effective decision. The more good options the manager consider the more comprehensive his final decision will be. Heres a summary of some of the key tools and techniques to help you and your team develop good alternatives. a. b. c. d. Toyota Nissan BMW Honda

7. Step 5: Explore the Alternatives. When individual is satisfied that he has a good selection of realistic alternatives, then he will need to evaluate the feasibility, risks, and implications of each choice.. 8. Step 6: Analysis of Alternatives. After evaluating the alternatives, the next step is to choose between them. The choice may be obvious. However, if it isnt, these tools will help:

Grid Analysis, helps you bring disparate factors into your decision-making process in a reliable and rigorous way.

Use Paired Comparison Analysis to determine the relative importance of various factors. Decision Trees are also useful in choosing between options.

Various Brand Toyota Nissan BMW Honda

Low Cost

Engine Performance 8 9 10 8

Maintenance cost 10 8 7 8

Resale value 10 8 9 9

Gas Mileage

10 4 3 5

48 6 4 7

Various Brand Toyota Nissan BMW Honda

Low Cost 100 40 30 50

Engine Performance 72 81 90 72

Maintenance cost 90 72 63 72

Resale value 60 48 54 54

Gas Total Mileage 48 36 24 42

9. Step 7: Implementations of the alternatives. With all of the effort and hard work that goes into evaluating alternatives, and deciding the best way forward, it's easy to forget to sense check' your decisions. This is where you look at the decision you're about to make dispassionately, to make sure that your process has been thorough, and to ensure that common errors haven't crept into the decision-making process. After all, we can all now 10. Step-8. Evaluation of decision Effectiveness. The last step involves evaluating the outcome of the decision to see if the problem had been resolved.

Q. What are the decision making style and what is your decion making style unde particular type of situation? 1. Introduction. Mangers decision making style differs along two dimensions.. The first is an individuals way of thinking. Some of us are more rational and logical in the way of processing information. A rational type looks at information in order and makes sure that its logical and consistent before making a decision. Others tend to be creative and intuitive. Intuitive types dont have to process information in a certain order but are comfortable looking at it as a whole. 2. Decisions making Style. There are four decision making style are evident. Those are shown below

a. Directive Style. Directive principals focus on technical decisions, are often autocratic, use little information when making decisions and consider few solutions. Speed and satisfactory results are most important to these principals. They generally prefer structure, are focused, often aggressive and efficient. The directive style is effective in hierarchical structures that maintain the status quo or when change is predictable. b. Behavioral Styles. It focus on social decisions, are supportive, and accept loose control. Their concern about the organization is on the development of the people. They generally prefer warmth, empathy, and open face-to-face communication. They counsel and persuade rather than direct, use limited data, maintain a short range focus, and avoid conflict. The behavioural style is more collegial than collaborative and its short range focus

limits its use to making decisions that maintain the status quo or react to predictable change. c. Analytical Style. It also focuses on technical decisions and is often autocratic. They require much information and consider multiple solutions. Careful analysis and maximized achievement are most important to these principals. They require time to process information, are innovative and have a high need for control. The analytical style may be effective during periods of unpredictable change but it relies strongly on a hierarchical structure. d. Conceptual Style. principals also focus on social decisions and exhibit a people orientation. They are participative and share control. They tend to use data from multiple sources and consider many alternatives. Ethics and values are important to these individuals. They generally prefer loose control, trust and openness in relationships and share goals with subordinates. They maintain a long range focus, are achievement oriented and need recognition and independence. The conceptual style is collaborative and is effective in the highly ambiguous environment associated with unpredictable change. 3.