DECISOIN MAKING AND DECISION TAKING report by; Mc Lester C. Oli

DECISOIN MAKING AND DECISION TAKING
Intelligence computer software is helping managers and other decision makers to be more effective and efficient. Several diverse industries such as energy,health care, transportation, and telecommunications are relying on applied intelligence software to help make decisions by computers that were previously left to humans. Making good decisions is something that every manager strives to do because the overall quality of managerial decisions has a major influence on organizational success or failure.

Decision making is part of all four managerial functions. In performing these functions, managers are often called decision makers.

THE DECISION-MAKING PROCESS:
· Decision- is a choice made from two or more alternatives.
· Decision-making process- is defined as a set of different steps that begins with identifying a problem and decision criteria and allocating weights to those criteria.

a.) Descriptive decision-making models - attemps to prescribe how managers actually do make desions.

b.) Normative decision-making models - attemps to prescribe how managers should process.

i. Following the prescription should lead to a more effective decision-making process.
ii. The models usually incorporate four steps.

Steps in an effective decision-making process:

A. Organizational problem

1. The scanning state involves monitoring the work situation for hanging circumstances.

2. The categorization stage entails attempting to understand and verify signs.

3. The diagnosis stage involves gathering additional information and specifying both the nature and the problem.

B. The generation of alternative solutions

1.)Don’t criticize ideas while generating possible solutions

2.) Freewheel, offer even seemingly wild and outrageous ideas in an effort to trigger more
usable ideas from others.

3.) Offer as many ideas as possible.

4.) Combine and improve on ideas that have been offered.

C. The choice of an alternative

1.) Feasibility is the extent to which an alternative can be accomplished within related
organizational constraints, such as time, budgets, technology and policies.

2.) Quality is the extend to which an alternative effectively solves the problemunder
consideration.

3.) Acceptability is the degree to which the decision makers and others who will be affected by the implementation of the alternative are willing to support it.

4.) Cost are the resource levels required and the extent to which the alternative is liker\ly to have undesirable side effects.

5.) Reversibility is the estent to which the alternative can be reversed, if it all.

6.) The ethics criterion refers to thwe extent to which an alternative is compitable with the social responsibilities of the organization and with ethical standards.

D. Implementing and monitoring

1.) Implementation requires careful planning.

a.) The amount of planning depends upon whether the projected changes are minor or major.
b.) Irreversible shanges require a great deal of planning.

2.) Implementation requires sensitivity to those involved in or affected by the implementation.
a.) Affected individuals are more likely to support a decision when they are able to participate in its implementation.
b.) If participation is not feasible, individuals should be kept informed of the changes.

3.) Monitoring is necessary .

Decision Making Situation:
· Certainty is a situation in which a manager can make a accurete decisions because the outcome of every alternative is known.
· Uncertainty a condition which the decision maker chooses a course of action without complete knoledge of the consequences that will follow implementaion.
· Risk is the possibility that a chosen action could lead to losses rather than the intended results.

a.) Uncertainty is seen as the reason why situation is risky.

b.) A rapidly changing environment is a major cause of uncertainty.

RATIONAL DECISION MAKING:by Charles Roland M. Queroda

RATIONAL DECISION MAKING
THE NATURE OF MANAGERIAL DECISION MAKING:
Decision making- a the process through which managers identify organizatinal problem and attempt to resolved them.
3 types of problem:
1. Crisis problem- is a serious difficulty requiring immediate action.
2. Non-crisis problem- is an issue that requires resolution, but does not simultaneously have the importance and immediacy characteristic of crisis.
3. Opportunity problem- is a situation that offers a strong potential for significant organizational gain if appropriate actions are taken.
MODELS OF DECISION MAKING :
Rational Model- managers are engage an completely rational decision process, ultimate make optima decisions.
- Is flawed in that it does not apply to actual decision.
Rational Model Step by Step:
Step 1. Idetifying a problem.
Problem-is defined as a discrepancy bet. An existing and a desired atste of affairs .
Step 2.Idetifying the decision criteria.
Decision Criteria-are that define what is relevant and important in making a decision.
Step 3.allocating weights to criteria.
Step 4.Involves developing alternatives.
Step 5.Analyzing alternatives.
Step 6.Involves selecting an alternatives.
Step 7.Choosing a course of action and implementing the alternative.
Step 8.Involves evaluating the effectiveness.
NATURE AND TYPES OF MANAGERIAL DECISIONS
Programmed Decisions - are those made in routine, repetitive, well-structured situations through the use of predetermined decision rules.
Non-Programmed Decisions – Are thoe for which predetermined decision rules are impractical because the situations are novel and ill-structured.
TYPES OF PROBLEMS AND DECIONS USED:
1.Well-structured Problems- are straightforward, familiar and easily defined.
Managers can used PROGRAM DECISION,-which is repetitive decision that can be handled by a routine approach.3 posible Program Decision:
1.Procedure- is a series of interrelated sequential steps that can be used to respond to a structured problem.
2.Rule- is an implicit statement that tells managers what they ought or ought not to do.
3.Policy- is a guide that establishes parameter for making decisions rather than spcifically stating what should or should not be done.
2.Poorly structured problems-are new or unusual problem in which information is ambiguous or incomplete.These problems are best handled by a NON-PROGRAMMED DECISION that is a unique decision that requires a custom-made solution.
GENERAL ORGANIZATIONAL SITUATIONS:
1.At the higher level of the organization, managers are dealing with poorly structured problems and using non-programmed decision.
2.At lower level,managers are dealing with well-structured problems by using programmed decisions.
Assumptions of Rationality- is that decision are made in in the best economic interest of the organization not in the manager interests.



DECISION MAKING STYLES
2 DIMENSIONS IN THE WAY THEY APPROACH DECISION MAKING:
1.Individual’s way of thinking(rational or intuitive)
2.Individual’s tolerance for ambiguity(low or high)
4 Diffirent Decision-Making Styles
1.Directive Style- is one that characterizws by low tolerance for ambiguity and rational way of thinking.
2.Conceptual Style-is one characterized by an intuitive way of thinking and high tolerance for ambiguity.
3.Analytic Style-Is one characterized by high tolerance for ambiguity and a rational way of thinking.
4.Behavioral Style- IS one characterizes by low tolerance for ambiguity and an intuitive way of thinking.

SONY FINANCIAL HOLDINGS Inc.: Mc Lester C. Oli

LTO ORGANIZATIONAL CHART: Charles Roland M. Queroda