SlideShare a Scribd company logo
1 of 28
Download to read offline
Presented by:
Ekta Belwal
HHM/2013-011
M.Sc. (FN)
Decision Making
 “Decision Making is a conscious & Human
Process involving both individual & social
phenomenon based upon factual & value
premises which concludes with a choice of one
behavioural activity among one or more
alternatives with the intention of moving towards
some desired state of affairs.”
- Shull, Delberg & Cumming
 “Decision- making is a process of identifying &
choosing alternative courses of action in a manner
appropriate to the demand of the situation. The
act of choosing implies that alternative courses of
action must be weighted & weeded out.”
- Kreitner
Six ‘s of Decision Making
 Construct a clear picture of precisely what
must be decided.
 Compile a list of requirements that must be
met.
 Collect information on alternatives that meet
the requirements.
 Compare alternatives that meet the
requirements.
 Consider the "what might go wrong" factor with
each alternative.
Types of
Decisions
1.Organisational &
Personal Decisions
2.Tactical(Routine)
& Strategic(Basic)
Decisions
3.Programmed & Non-
Programmed
Decisions
4.Policy & Operative
Decisions
5.Individual &
Group Decisions
1.Organisational and Personal
Decisions
 Organisational decisions are those which
managers undertake under certain conditions
relating to organisation. Sometimes taken
independently and sometimes delegated to
other colleagues.
 Personal decisions are to be taken by the
managers on their own. Others need not to be
consulted.
2. Tactical(Routine) &
Strategic(Basic) Decisions
Tactical (Routine) Decisions
 Concerned with routine & repetitive problems
 neither require collection of new data nor conferring with the
people. Thus can be taken without much deliberation.
 Has short term implications
 May be complicated but are always one dimensional.
 More experience & judgement is needed.
Strategic(Basic) Decisions
 made on the problems which are important.
 Require thorough fact finding analysis of the possible
alternatives.
 Finding the correct problem in such decisions assume more
importance.
 Has long term implications
3. Programmed & Non-Programmed
Decisions
 Professor Herbert Simon has given this
classification. He has utilised computer terminology
in classifying decisions.
 Programmed decision may also be called as Routine
Decision and Non programmed as Strategic
Decisions
4. Policy & Operative
Decisions
 Policy decisions determine the the basic policies of the
organisations & are taken at top level management. The
policies are decided at the top become the basis for
operative decisions can go beyond the policy framework
of the organisation. These are important in nature & have
long term impact.
 Operative decisions on other hand, are less important &
related with day-today operations of the business. Middle
and lower management take these decisions since these
involve actual execution and supervision.
Whether to allow bonus to employees or not is a policy
decision. Once it is decided to pay bonus then making
calculation of payments to be made to different employees
is an operative decision.
5. Individual & Group
Decisions
It is based on the number of persons involved in
decision-making.
 Generally individual decision are less important &
programmed one.
 Group decisions are taken by a group of persons.
These are generally important decisions & relate
to policy matters. The decisions are taken after a
thorough discussion among persons who are
assigned this work. The problem of delay in taking
group decisions may create difficulties but
otherwise these are well discussed decisions.
FACTORS AFFECTING DECISION MAKING
(IN AN ORGANISATION)
Whenever we are involved in making decisions a number of factors can affect
the process we follow and ultimately the decision we make.
They can be organised into three major groups:
 Perception Issues
 Organisational Issues
 Environmental Issues
PERCEPTION ISSUES:
Perceptioncanbedescribedas thewayinwhichindividualsinterprettheir
environment.
Perception can be influenced by the following:
 The perceiver
The types of personal characteristics that can affect an individual's
perception include:
 Background and experience
 Personal values
 Personal expectations
 Personal interests
 The situation: Time, location and other situational factors can influence our
perception of an object. E.g., For example, a Team Leader may notice
team members who work late on the same evenings as the Team
Leader. However, team members who work late on other evenings may
not be noticed by the Team Leader.
The object:
 The object, which refers to any person, item or event can
have an impact on the way it is perceived.
For example, when a manager receives a number of reports to read he may
be more inclined to read the one with the most colourful cover as this one stands
out.
 The relation an object has to other objects can also affect
the perception of the perceiver.
For example, an individual team member may be judged on the actions of
the whole team even when it is more appropriate for them to be judged on their
own merits.
ISSUES WITHIN THE ORGANISATION:
A number of organisational issues can impact on the
decision making process. These issues include:
 Policies and procedures
 Organisational hierarchy
 Organisational politics
 POLICIES AND PROCEDURES
 Many organisations have formalised policies and
procedures which have been developed to resolve
common problems and to guide managers when
making decisions.
 e.g., many organisations have documented
disciplinary procedures which guide managers
through a process of resolving issues with staff
members.
 ORGANISATIONAL HIERARCHY
 Organisational hierarchy refers to the management
structure of the organisation. Most organisations
have different levels of management which carry
with them different degrees of authority. The degree
of authority directly impacts on the nature of the
decisions an individual can make.
 E.g., a Customer Contact Centre Team Leader
cannot make decisions about the overall goals of
the organisation. However, the Team Leader can
make decisions about how their team contributes to
the achievement of the organisation's goals.
 ORGANISATIONAL POLITICS
Organisational politics refers to behaviour displayed by
individuals and groups which is designed to influence others.
Individuals and teams will often use politics to:
 Advance their careers
 Advance their interests and ideas
 Increase their rewards
 Organisations are made up of individuals with different
beliefs, values and interests. These differences are often the
driving forces behind organisational politics.
 For example, two teams believe they require an extra team
member. Unfortunately the organisation can only afford one
new employee. The two teams may well use politics in an
attempt to influence their manager to allocate the new
employee to their team.
ISSUES WITHIN THE ENVIRONMENT:
Environmental issues are the external factors that
affect the organisation. The types of external factors
that can have an effect on decision making include:
The market in which the organisation
operates
The economy
Government legislation
Customers' reaction to the organisation's
products and services
Factors
affecting
Decision
making
Personal
Factors
Cultural
factors
Social
Factor
Information
Psychological
factors
Personal factors
 Personal Demographics: age, gender, stages
in life cycle, education, occupation, economic
position, etc.
 Personal psychographics: includes lifestyle,
attitudes, self-concept, concern about status,
value systems, beliefs etc.
Cultural factors
 Culture: combined resulted of factors like religion,
traditions, taboos, language, education, upbringing,
established pattern of social behaviour, values (core &
secondary)etc.
 Sub culture: caste
 Social class: it is determined by the education level,
wealth, occupation, profession & designation, location
of residence, values, and behaviour of its members.
Social Factors
Influence of reference group:
 Intimate groups: e.g. family, friends, peer
groups, close colleagues & close-knit
organisations.
 Face-to-face & frequent interactions are characteristic
feature of the group.
 Secondary groups(including Opinion leaders):
based on occupation, profession place of
residence, etc., of the members.
 O.L has the high credibility & influence.
Information
 information, should be
authentic, reliable, adequate
and must be available at time.
So enough time must be there
to analyse the problem.
 It reduces the uncertainty.
 Too much information or
information over-load creates
confusion & delay in decision
making.
Psychological factors
 Motivation: it all begins with needs.
 Perception: According to consistency theory one
mostly listen to things that support one’s existing
belief system)
 Selective attention
 Selective distortion
 Selective retention
 Learning Process: people do change their beliefs,
faiths, likes & dislike which happens through learning
 Memory Process: include past experiences even
the hearsay experiences.
Heuristic
 In psychology, heuristics are simple, efficient
rules, learned or hard-coded by evolutionary
processes, that have been proposed to explain
how people make decisions, come to judgments,
and solve problems typically when facing complex
problems or incomplete information. These rules
work well under most circumstances, but in
certain cases lead to systematic errors or
cognitive biases.
 Examples of this method include using a rule of
thumb, an educated guess, an intuitive judgment,
stereotyping, or common sense.
• Anchoring and adjustment – Describes the common human tendency to rely too heavily
on the first piece of information offered (the "anchor") when making decisions.
• Availability heuristic – A mental shortcut that occurs when people make judgments about
the probability of events by the ease with which examples come to mind. For example, in
a 1973 Tversky & Kahneman experiment, the majority of participants reported that there
were more words in the English language that start with the letter K than for which K was
the third letter. There are actually twice as many words in the English Language that have
K as the third letter than start with K, but words that start with K are much easier to recall
and bring to mind.
• Escalation of commitment – Describes the phenomenon where people justify increased
investment in a decision, based on the cumulative prior investment, despite new evidence
suggesting that the cost, starting today, of continuing the decision outweighs the expected
benefit.
• Familiarity heuristic – A mental shortcut applied to various situations in which individuals
assume that the circumstances underlying the past behaviour still hold true for the
present situation and that the past behaviour thus can be correctly applied to the new
situation.
Inherent Personal Traps
ã Trying too hard to play it safe.
ã Letting fears and biases tilt your
thinking and analysis.
ã Getting lost in the minutia can cause
trouble.
ã Craving for unanimous approval.
ã Trying to make decisions which are
outside your realm of authority.
Inherent System Traps
+ Willing to begin with too little,
inaccurate, or wrong information.
+ Overlook viable alternatives or waste
time considering alternatives which
have no realistic prospects.
+ Not following the six C's.
+ Failure to clearly define the results
you expect to achieve.
+ Worst of all, failure to reach a
decision.
Thank You.
“Doing what's right isn't hard --
Knowing what's right is.”
Lyndon B. Johnson.

More Related Content

What's hot

DECISION MAKING – DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND P...
DECISION MAKING – DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND P...DECISION MAKING – DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND P...
DECISION MAKING – DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND P...AMALDASKH
 
Strategic Human Resource Management (SHRM)
Strategic Human Resource Management (SHRM)Strategic Human Resource Management (SHRM)
Strategic Human Resource Management (SHRM)Sheetal Wagh
 
Strategic evaluation & control
Strategic evaluation & controlStrategic evaluation & control
Strategic evaluation & controlBandri Nikhil
 
Ethics in management
Ethics in managementEthics in management
Ethics in managementMegha_pareek
 
Decision making techniques
Decision making techniquesDecision making techniques
Decision making techniquesNikita Gupta
 
Decision making theory and process
Decision making theory and processDecision making theory and process
Decision making theory and processArdha
 
Fundamentals of Organizational Behavior
Fundamentals of Organizational BehaviorFundamentals of Organizational Behavior
Fundamentals of Organizational Behaviorace boado
 
Decision making
Decision makingDecision making
Decision makingLavan Yaa
 
Corporate planning (MNG 106)
Corporate planning (MNG 106)Corporate planning (MNG 106)
Corporate planning (MNG 106)Mk Blanco
 
Decision Making: Decision Making Process, Stages in Decision Making, Individu...
Decision Making: Decision Making Process, Stages in Decision Making, Individu...Decision Making: Decision Making Process, Stages in Decision Making, Individu...
Decision Making: Decision Making Process, Stages in Decision Making, Individu...Ashish Hande
 
Decision making PPT ON MANAGEMENT BEHAVIOURAL PROCESS MBA 4 SEM
Decision making  PPT ON MANAGEMENT BEHAVIOURAL PROCESS MBA 4 SEMDecision making  PPT ON MANAGEMENT BEHAVIOURAL PROCESS MBA 4 SEM
Decision making PPT ON MANAGEMENT BEHAVIOURAL PROCESS MBA 4 SEMBabasab Patil
 
Strategic management
Strategic managementStrategic management
Strategic managementNawal Badu
 
Ethical issues in human resource
Ethical issues in human resourceEthical issues in human resource
Ethical issues in human resourceIvana Parveen
 
Ethics in Performance Management
Ethics in Performance ManagementEthics in Performance Management
Ethics in Performance ManagementSheetal Wagh
 
Ethical Issues in Human Resource Management
Ethical Issues in Human Resource ManagementEthical Issues in Human Resource Management
Ethical Issues in Human Resource ManagementJASTINDER PAL SINGH
 
’’GROUP DECISION MAKING ’’
’’GROUP DECISION MAKING ’’’’GROUP DECISION MAKING ’’
’’GROUP DECISION MAKING ’’Rishi vyas
 
Strategic managemnet process ppt
Strategic managemnet process pptStrategic managemnet process ppt
Strategic managemnet process pptMUHAMMAD HASRATH
 

What's hot (20)

DECISION MAKING – DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND P...
DECISION MAKING – DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND P...DECISION MAKING – DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND P...
DECISION MAKING – DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND P...
 
Strategic Human Resource Management (SHRM)
Strategic Human Resource Management (SHRM)Strategic Human Resource Management (SHRM)
Strategic Human Resource Management (SHRM)
 
ORGANIZATIONAL CHANGE
ORGANIZATIONAL CHANGEORGANIZATIONAL CHANGE
ORGANIZATIONAL CHANGE
 
Strategic evaluation & control
Strategic evaluation & controlStrategic evaluation & control
Strategic evaluation & control
 
Ethics in management
Ethics in managementEthics in management
Ethics in management
 
Decision making techniques
Decision making techniquesDecision making techniques
Decision making techniques
 
Decision making theory and process
Decision making theory and processDecision making theory and process
Decision making theory and process
 
Fundamentals of Organizational Behavior
Fundamentals of Organizational BehaviorFundamentals of Organizational Behavior
Fundamentals of Organizational Behavior
 
Decision making
Decision makingDecision making
Decision making
 
Corporate planning (MNG 106)
Corporate planning (MNG 106)Corporate planning (MNG 106)
Corporate planning (MNG 106)
 
Decision Making: Decision Making Process, Stages in Decision Making, Individu...
Decision Making: Decision Making Process, Stages in Decision Making, Individu...Decision Making: Decision Making Process, Stages in Decision Making, Individu...
Decision Making: Decision Making Process, Stages in Decision Making, Individu...
 
Decision making PPT ON MANAGEMENT BEHAVIOURAL PROCESS MBA 4 SEM
Decision making  PPT ON MANAGEMENT BEHAVIOURAL PROCESS MBA 4 SEMDecision making  PPT ON MANAGEMENT BEHAVIOURAL PROCESS MBA 4 SEM
Decision making PPT ON MANAGEMENT BEHAVIOURAL PROCESS MBA 4 SEM
 
Decision making
Decision makingDecision making
Decision making
 
Strategic management
Strategic managementStrategic management
Strategic management
 
Ethical issues in human resource
Ethical issues in human resourceEthical issues in human resource
Ethical issues in human resource
 
Ethics in Performance Management
Ethics in Performance ManagementEthics in Performance Management
Ethics in Performance Management
 
Hrm in a changing environment
Hrm in a changing environmentHrm in a changing environment
Hrm in a changing environment
 
Ethical Issues in Human Resource Management
Ethical Issues in Human Resource ManagementEthical Issues in Human Resource Management
Ethical Issues in Human Resource Management
 
’’GROUP DECISION MAKING ’’
’’GROUP DECISION MAKING ’’’’GROUP DECISION MAKING ’’
’’GROUP DECISION MAKING ’’
 
Strategic managemnet process ppt
Strategic managemnet process pptStrategic managemnet process ppt
Strategic managemnet process ppt
 

Viewers also liked

Factors affecting decision making
Factors affecting decision makingFactors affecting decision making
Factors affecting decision makingvincent konadu
 
Barriers to effective decision making by jenrap14
Barriers to effective decision making by jenrap14Barriers to effective decision making by jenrap14
Barriers to effective decision making by jenrap14Jen Rapista
 
Decision Making Process a Practical Example
Decision Making Process a Practical ExampleDecision Making Process a Practical Example
Decision Making Process a Practical ExampleAbid Siddiqui
 
Decision making (Principles of Management)
Decision making (Principles of Management)Decision making (Principles of Management)
Decision making (Principles of Management)Denni Domingo
 
Decision Making Process
Decision Making ProcessDecision Making Process
Decision Making ProcessAima Masood
 
Decision Making In Management
Decision Making In ManagementDecision Making In Management
Decision Making In ManagementVinesh Pathak
 

Viewers also liked (8)

Factors affecting decision making
Factors affecting decision makingFactors affecting decision making
Factors affecting decision making
 
Barriers to effective decision making by jenrap14
Barriers to effective decision making by jenrap14Barriers to effective decision making by jenrap14
Barriers to effective decision making by jenrap14
 
Decision making process
Decision making processDecision making process
Decision making process
 
Decision Making Process a Practical Example
Decision Making Process a Practical ExampleDecision Making Process a Practical Example
Decision Making Process a Practical Example
 
Decision making (Principles of Management)
Decision making (Principles of Management)Decision making (Principles of Management)
Decision making (Principles of Management)
 
Decision making
Decision makingDecision making
Decision making
 
Decision Making Process
Decision Making ProcessDecision Making Process
Decision Making Process
 
Decision Making In Management
Decision Making In ManagementDecision Making In Management
Decision Making In Management
 

Similar to factors affecting Decision making

Administrative Behaviour
Administrative BehaviourAdministrative Behaviour
Administrative BehaviourArun Malik
 
DECISION MAKING AND TECHNIQUES OF DECISION MAKING
DECISION MAKING AND TECHNIQUES OF DECISION MAKINGDECISION MAKING AND TECHNIQUES OF DECISION MAKING
DECISION MAKING AND TECHNIQUES OF DECISION MAKINGManah Chhabra
 
Organizational behaviour
Organizational behaviourOrganizational behaviour
Organizational behaviourmeetdesai30
 
Sample exam questions bo resum-edocx
Sample exam questions bo resum-edocxSample exam questions bo resum-edocx
Sample exam questions bo resum-edocxJoão Cabral
 
DECISION MAKING
DECISION MAKINGDECISION MAKING
DECISION MAKINGDrneetu2
 
ppt.Behavioral Administration.pptx
ppt.Behavioral Administration.pptxppt.Behavioral Administration.pptx
ppt.Behavioral Administration.pptxMeannSagaralMacalala
 
Ppt perception and individual Decision Making
Ppt perception and individual Decision MakingPpt perception and individual Decision Making
Ppt perception and individual Decision MakingDeni Triyanto
 
Strategic decision making
Strategic decision makingStrategic decision making
Strategic decision makingganpules
 
Principal of Management Report : Pharmaplex Company
Principal of Management Report :  Pharmaplex  CompanyPrincipal of Management Report :  Pharmaplex  Company
Principal of Management Report : Pharmaplex CompanyShahzeb Pirzada
 
Strategic Decision Making Process
Strategic Decision Making ProcessStrategic Decision Making Process
Strategic Decision Making ProcessChrisPeterGau
 
1WEEK TWO ASSIGNMENT 3Continuing Academic Success Stud.docx
1WEEK TWO ASSIGNMENT 3Continuing Academic Success Stud.docx1WEEK TWO ASSIGNMENT 3Continuing Academic Success Stud.docx
1WEEK TWO ASSIGNMENT 3Continuing Academic Success Stud.docxfelicidaddinwoodie
 

Similar to factors affecting Decision making (20)

Administrative Behaviour
Administrative BehaviourAdministrative Behaviour
Administrative Behaviour
 
Decision-Making Essay
Decision-Making EssayDecision-Making Essay
Decision-Making Essay
 
DECISION MAKING AND TECHNIQUES OF DECISION MAKING
DECISION MAKING AND TECHNIQUES OF DECISION MAKINGDECISION MAKING AND TECHNIQUES OF DECISION MAKING
DECISION MAKING AND TECHNIQUES OF DECISION MAKING
 
Nursing Decision-Making Essay
Nursing Decision-Making EssayNursing Decision-Making Essay
Nursing Decision-Making Essay
 
Organizational behaviour
Organizational behaviourOrganizational behaviour
Organizational behaviour
 
Decision Making
Decision MakingDecision Making
Decision Making
 
Sample exam questions bo resum-edocx
Sample exam questions bo resum-edocxSample exam questions bo resum-edocx
Sample exam questions bo resum-edocx
 
DECISION MAKING
DECISION MAKINGDECISION MAKING
DECISION MAKING
 
mpob 6 dec.pptx
mpob 6 dec.pptxmpob 6 dec.pptx
mpob 6 dec.pptx
 
Critical Thinking And Decision Making Essay
Critical Thinking And Decision Making EssayCritical Thinking And Decision Making Essay
Critical Thinking And Decision Making Essay
 
ppt.Behavioral Administration.pptx
ppt.Behavioral Administration.pptxppt.Behavioral Administration.pptx
ppt.Behavioral Administration.pptx
 
Decision making.docx
Decision making.docxDecision making.docx
Decision making.docx
 
Essay On Decision Making
Essay On Decision MakingEssay On Decision Making
Essay On Decision Making
 
Ppt perception and individual Decision Making
Ppt perception and individual Decision MakingPpt perception and individual Decision Making
Ppt perception and individual Decision Making
 
Strategic decision making
Strategic decision makingStrategic decision making
Strategic decision making
 
Business Ethic
Business EthicBusiness Ethic
Business Ethic
 
Principal of Management Report : Pharmaplex Company
Principal of Management Report :  Pharmaplex  CompanyPrincipal of Management Report :  Pharmaplex  Company
Principal of Management Report : Pharmaplex Company
 
Strategic Decision Making Process
Strategic Decision Making ProcessStrategic Decision Making Process
Strategic Decision Making Process
 
1WEEK TWO ASSIGNMENT 3Continuing Academic Success Stud.docx
1WEEK TWO ASSIGNMENT 3Continuing Academic Success Stud.docx1WEEK TWO ASSIGNMENT 3Continuing Academic Success Stud.docx
1WEEK TWO ASSIGNMENT 3Continuing Academic Success Stud.docx
 
Reflective Essay On Decision Making
Reflective Essay On Decision MakingReflective Essay On Decision Making
Reflective Essay On Decision Making
 

More from Ekta Belwal

Development of Nutraceuticals & functional foods
Development of Nutraceuticals & functional foodsDevelopment of Nutraceuticals & functional foods
Development of Nutraceuticals & functional foodsEkta Belwal
 
Weight loss diets
Weight loss dietsWeight loss diets
Weight loss dietsEkta Belwal
 
Milk and milk products
Milk and milk productsMilk and milk products
Milk and milk productsEkta Belwal
 
Nutrition for Women health
Nutrition for Women healthNutrition for Women health
Nutrition for Women healthEkta Belwal
 
Nutritional Anthropometry
Nutritional AnthropometryNutritional Anthropometry
Nutritional AnthropometryEkta Belwal
 
Role of mass media
Role of mass mediaRole of mass media
Role of mass mediaEkta Belwal
 
Preparing, Diluting of solutions of different Strengths & safety measures whi...
Preparing, Diluting of solutions of different Strengths & safety measures whi...Preparing, Diluting of solutions of different Strengths & safety measures whi...
Preparing, Diluting of solutions of different Strengths & safety measures whi...Ekta Belwal
 

More from Ekta Belwal (7)

Development of Nutraceuticals & functional foods
Development of Nutraceuticals & functional foodsDevelopment of Nutraceuticals & functional foods
Development of Nutraceuticals & functional foods
 
Weight loss diets
Weight loss dietsWeight loss diets
Weight loss diets
 
Milk and milk products
Milk and milk productsMilk and milk products
Milk and milk products
 
Nutrition for Women health
Nutrition for Women healthNutrition for Women health
Nutrition for Women health
 
Nutritional Anthropometry
Nutritional AnthropometryNutritional Anthropometry
Nutritional Anthropometry
 
Role of mass media
Role of mass mediaRole of mass media
Role of mass media
 
Preparing, Diluting of solutions of different Strengths & safety measures whi...
Preparing, Diluting of solutions of different Strengths & safety measures whi...Preparing, Diluting of solutions of different Strengths & safety measures whi...
Preparing, Diluting of solutions of different Strengths & safety measures whi...
 

Recently uploaded

Forget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsForget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsStephan Koning
 
What is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfWhat is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfBALASUNDARESAN M
 
Value Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationValue Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationCIToolkit
 
Improving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksImproving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksCIToolkit
 
An Important Step Toward Process Improvement
An Important Step Toward Process ImprovementAn Important Step Toward Process Improvement
An Important Step Toward Process ImprovementCIToolkit
 
Test_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenTest_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenolgaz9
 
How the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioHow the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioChristopher Totten
 
Organizations in a Future with Generative AI
Organizations in a Future with Generative AIOrganizations in a Future with Generative AI
Organizations in a Future with Generative AIKye Andersson
 
HR for Non HR_Learning and Development.
HR for Non HR_Learning  and Development.HR for Non HR_Learning  and Development.
HR for Non HR_Learning and Development.azischin
 
Tackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanTackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanStefan Wolpers
 
A3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingA3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingCIToolkit
 
The Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectThe Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectCIToolkit
 
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...AgileNetwork
 
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersEmpowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersMahmoud Rabie
 
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementApplying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementCIToolkit
 
From Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMFrom Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMGloria Chow
 
Performance Management Notes for MBA Students
Performance Management Notes for MBA StudentsPerformance Management Notes for MBA Students
Performance Management Notes for MBA StudentsManickam Gajapathy
 
Making Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsMaking Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsCIToolkit
 
Analyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingAnalyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingCIToolkit
 

Recently uploaded (20)

Forget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsForget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outs
 
What is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfWhat is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdf
 
Value Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationValue Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process Optimization
 
Improving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksImproving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba Walks
 
An Important Step Toward Process Improvement
An Important Step Toward Process ImprovementAn Important Step Toward Process Improvement
An Important Step Toward Process Improvement
 
Test_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenTest_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteen
 
How the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioHow the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the Studio
 
Capacity2 - Briefing and Facilitation training slides
Capacity2 - Briefing and Facilitation training slidesCapacity2 - Briefing and Facilitation training slides
Capacity2 - Briefing and Facilitation training slides
 
Organizations in a Future with Generative AI
Organizations in a Future with Generative AIOrganizations in a Future with Generative AI
Organizations in a Future with Generative AI
 
HR for Non HR_Learning and Development.
HR for Non HR_Learning  and Development.HR for Non HR_Learning  and Development.
HR for Non HR_Learning and Development.
 
Tackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanTackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna Rothman
 
A3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingA3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem Solving
 
The Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and EffectThe Role of Fishbone Diagram in Analyzing Cause and Effect
The Role of Fishbone Diagram in Analyzing Cause and Effect
 
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
 
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersEmpowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
 
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementApplying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
 
From Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMFrom Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EM
 
Performance Management Notes for MBA Students
Performance Management Notes for MBA StudentsPerformance Management Notes for MBA Students
Performance Management Notes for MBA Students
 
Making Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsMaking Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity Diagrams
 
Analyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingAnalyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value Mapping
 

factors affecting Decision making

  • 2. Decision Making  “Decision Making is a conscious & Human Process involving both individual & social phenomenon based upon factual & value premises which concludes with a choice of one behavioural activity among one or more alternatives with the intention of moving towards some desired state of affairs.” - Shull, Delberg & Cumming  “Decision- making is a process of identifying & choosing alternative courses of action in a manner appropriate to the demand of the situation. The act of choosing implies that alternative courses of action must be weighted & weeded out.” - Kreitner
  • 3. Six ‘s of Decision Making  Construct a clear picture of precisely what must be decided.  Compile a list of requirements that must be met.  Collect information on alternatives that meet the requirements.  Compare alternatives that meet the requirements.  Consider the "what might go wrong" factor with each alternative.
  • 4. Types of Decisions 1.Organisational & Personal Decisions 2.Tactical(Routine) & Strategic(Basic) Decisions 3.Programmed & Non- Programmed Decisions 4.Policy & Operative Decisions 5.Individual & Group Decisions
  • 5. 1.Organisational and Personal Decisions  Organisational decisions are those which managers undertake under certain conditions relating to organisation. Sometimes taken independently and sometimes delegated to other colleagues.  Personal decisions are to be taken by the managers on their own. Others need not to be consulted.
  • 6. 2. Tactical(Routine) & Strategic(Basic) Decisions Tactical (Routine) Decisions  Concerned with routine & repetitive problems  neither require collection of new data nor conferring with the people. Thus can be taken without much deliberation.  Has short term implications  May be complicated but are always one dimensional.  More experience & judgement is needed. Strategic(Basic) Decisions  made on the problems which are important.  Require thorough fact finding analysis of the possible alternatives.  Finding the correct problem in such decisions assume more importance.  Has long term implications
  • 7. 3. Programmed & Non-Programmed Decisions  Professor Herbert Simon has given this classification. He has utilised computer terminology in classifying decisions.  Programmed decision may also be called as Routine Decision and Non programmed as Strategic Decisions
  • 8. 4. Policy & Operative Decisions  Policy decisions determine the the basic policies of the organisations & are taken at top level management. The policies are decided at the top become the basis for operative decisions can go beyond the policy framework of the organisation. These are important in nature & have long term impact.  Operative decisions on other hand, are less important & related with day-today operations of the business. Middle and lower management take these decisions since these involve actual execution and supervision. Whether to allow bonus to employees or not is a policy decision. Once it is decided to pay bonus then making calculation of payments to be made to different employees is an operative decision.
  • 9. 5. Individual & Group Decisions It is based on the number of persons involved in decision-making.  Generally individual decision are less important & programmed one.  Group decisions are taken by a group of persons. These are generally important decisions & relate to policy matters. The decisions are taken after a thorough discussion among persons who are assigned this work. The problem of delay in taking group decisions may create difficulties but otherwise these are well discussed decisions.
  • 10. FACTORS AFFECTING DECISION MAKING (IN AN ORGANISATION) Whenever we are involved in making decisions a number of factors can affect the process we follow and ultimately the decision we make. They can be organised into three major groups:  Perception Issues  Organisational Issues  Environmental Issues
  • 11. PERCEPTION ISSUES: Perceptioncanbedescribedas thewayinwhichindividualsinterprettheir environment. Perception can be influenced by the following:  The perceiver The types of personal characteristics that can affect an individual's perception include:  Background and experience  Personal values  Personal expectations  Personal interests  The situation: Time, location and other situational factors can influence our perception of an object. E.g., For example, a Team Leader may notice team members who work late on the same evenings as the Team Leader. However, team members who work late on other evenings may not be noticed by the Team Leader.
  • 12. The object:  The object, which refers to any person, item or event can have an impact on the way it is perceived. For example, when a manager receives a number of reports to read he may be more inclined to read the one with the most colourful cover as this one stands out.  The relation an object has to other objects can also affect the perception of the perceiver. For example, an individual team member may be judged on the actions of the whole team even when it is more appropriate for them to be judged on their own merits.
  • 13. ISSUES WITHIN THE ORGANISATION: A number of organisational issues can impact on the decision making process. These issues include:  Policies and procedures  Organisational hierarchy  Organisational politics
  • 14.  POLICIES AND PROCEDURES  Many organisations have formalised policies and procedures which have been developed to resolve common problems and to guide managers when making decisions.  e.g., many organisations have documented disciplinary procedures which guide managers through a process of resolving issues with staff members.
  • 15.  ORGANISATIONAL HIERARCHY  Organisational hierarchy refers to the management structure of the organisation. Most organisations have different levels of management which carry with them different degrees of authority. The degree of authority directly impacts on the nature of the decisions an individual can make.  E.g., a Customer Contact Centre Team Leader cannot make decisions about the overall goals of the organisation. However, the Team Leader can make decisions about how their team contributes to the achievement of the organisation's goals.
  • 16.  ORGANISATIONAL POLITICS Organisational politics refers to behaviour displayed by individuals and groups which is designed to influence others. Individuals and teams will often use politics to:  Advance their careers  Advance their interests and ideas  Increase their rewards  Organisations are made up of individuals with different beliefs, values and interests. These differences are often the driving forces behind organisational politics.  For example, two teams believe they require an extra team member. Unfortunately the organisation can only afford one new employee. The two teams may well use politics in an attempt to influence their manager to allocate the new employee to their team.
  • 17. ISSUES WITHIN THE ENVIRONMENT: Environmental issues are the external factors that affect the organisation. The types of external factors that can have an effect on decision making include: The market in which the organisation operates The economy Government legislation Customers' reaction to the organisation's products and services
  • 19. Personal factors  Personal Demographics: age, gender, stages in life cycle, education, occupation, economic position, etc.  Personal psychographics: includes lifestyle, attitudes, self-concept, concern about status, value systems, beliefs etc.
  • 20. Cultural factors  Culture: combined resulted of factors like religion, traditions, taboos, language, education, upbringing, established pattern of social behaviour, values (core & secondary)etc.  Sub culture: caste  Social class: it is determined by the education level, wealth, occupation, profession & designation, location of residence, values, and behaviour of its members.
  • 21. Social Factors Influence of reference group:  Intimate groups: e.g. family, friends, peer groups, close colleagues & close-knit organisations.  Face-to-face & frequent interactions are characteristic feature of the group.  Secondary groups(including Opinion leaders): based on occupation, profession place of residence, etc., of the members.  O.L has the high credibility & influence.
  • 22. Information  information, should be authentic, reliable, adequate and must be available at time. So enough time must be there to analyse the problem.  It reduces the uncertainty.  Too much information or information over-load creates confusion & delay in decision making.
  • 23. Psychological factors  Motivation: it all begins with needs.  Perception: According to consistency theory one mostly listen to things that support one’s existing belief system)  Selective attention  Selective distortion  Selective retention  Learning Process: people do change their beliefs, faiths, likes & dislike which happens through learning  Memory Process: include past experiences even the hearsay experiences.
  • 24. Heuristic  In psychology, heuristics are simple, efficient rules, learned or hard-coded by evolutionary processes, that have been proposed to explain how people make decisions, come to judgments, and solve problems typically when facing complex problems or incomplete information. These rules work well under most circumstances, but in certain cases lead to systematic errors or cognitive biases.  Examples of this method include using a rule of thumb, an educated guess, an intuitive judgment, stereotyping, or common sense.
  • 25. • Anchoring and adjustment – Describes the common human tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions. • Availability heuristic – A mental shortcut that occurs when people make judgments about the probability of events by the ease with which examples come to mind. For example, in a 1973 Tversky & Kahneman experiment, the majority of participants reported that there were more words in the English language that start with the letter K than for which K was the third letter. There are actually twice as many words in the English Language that have K as the third letter than start with K, but words that start with K are much easier to recall and bring to mind. • Escalation of commitment – Describes the phenomenon where people justify increased investment in a decision, based on the cumulative prior investment, despite new evidence suggesting that the cost, starting today, of continuing the decision outweighs the expected benefit. • Familiarity heuristic – A mental shortcut applied to various situations in which individuals assume that the circumstances underlying the past behaviour still hold true for the present situation and that the past behaviour thus can be correctly applied to the new situation.
  • 26. Inherent Personal Traps ã Trying too hard to play it safe. ã Letting fears and biases tilt your thinking and analysis. ã Getting lost in the minutia can cause trouble. ã Craving for unanimous approval. ã Trying to make decisions which are outside your realm of authority.
  • 27. Inherent System Traps + Willing to begin with too little, inaccurate, or wrong information. + Overlook viable alternatives or waste time considering alternatives which have no realistic prospects. + Not following the six C's. + Failure to clearly define the results you expect to achieve. + Worst of all, failure to reach a decision.
  • 28. Thank You. “Doing what's right isn't hard -- Knowing what's right is.” Lyndon B. Johnson.