Decision Making a. Explain with examples the two types of decision making. b. Explain the steps in decision making
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sitikatijah (student)
Individual Assignment (ADS460)
Topic 7 Decision Making
Topic 7: Decision Making
. Explain with examples the TWO (2) types of decision making.
. Explain the steps in decision making.
Introduction
Definition of Decision Making
. The thought process of selecting a logical choice from the available options[1]
. Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice.[2]
. Decision making is a process by DEFINING which a course of action is selected as away to deal with a specific problem. It is the selection of one alternative from among two or more alternatives[3]
. It is the process by which managers respond to the opportunities and threats that confront them by analyzing the options and making determinations about specific organizational goals and courses of action[4]
Answer:
. TWO (2) types of decision making
Decision making is the selection of one alternative from among two or more alternatives. In other words, decision making is defined as the process by which a course of action is selected as the best way to deal with specific problem. There are two types of decision making are Programmed Decision and Non-Programmed Decision[5].
. Programmed Decision Marking
Programmed decision making is a repetitive decision that can be handled by a routine approach and is not new. In this decision making process you has set procedure, rules and policies to follow.
Programmed decisions are best in highly structured environments with established goals and channels of information. Because of the high structure, it’s possible to set up a rule that states an action will take place once a certain condition has been reached. This streamlines general, repetitive, and frequent decisions.
Programmed decisions enable upper management to dictate the decisions of middle management by establishing the rules. It also enables a small business owner to make quick and consistent decisions by setting a rule and applying it to all similar decisions. After establishing the rules across a series of decisions, ...
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Programmed decisions are best in highly structured environments with established goals and channels of information. Because of the high structure, it’s possible to set up a rule that states an action will take place once a certain condition has been reached. This streamlines general, repetitive, and frequent decisions.
Programmed decisions enable upper management to dictate the decisions of middle management by establishing the rules. It also enables a small business owner to make quick and consistent decisions by setting a rule and applying it to all similar decisions. After establishing the rules across a series of decisions, the rules guide future decisions to make decision making more efficient and effective.
Programmed decisions are proactive. They anticipate future problems and establish decision making to resolve the problems
. Non-Programmed Decision
In Non-programmed decision making: It is a unique decision that needs a custom made solution. In this you mostly deals with unstructured problem which are new or unusual and for which information is incomplete
Non-programmed decision making occurs in opposite conditions than programmed decision making. The environment most appropriate for non-programed decision making is one with poor structure, vague goals or ambiguous information. Usually decision making in such environments requires information and analysis specific to each decision.
Non-programmed decision making applies to specific concerns and infrequent decisions so that no rule can guide decisions.
Non-programmed decision making is reactive rather than proactive. Because the problems are more difficult to anticipate, each problem has to be dealt with as it occurs.
Decision Marking: Programmed Vs. Non-Programmed (Conclusion)
A good analogy for the differences between programmed and non-programmed decisions is a custom designed and produced product compared to a mass-produced one.
When you custom design and produce a new product, you’ll run into concerns that you have to resolve. These concerns require far more resources to produce the prototype than to produce copies.
The more copies that you produce, the more you learn to streamline the process. So by the time a product is put into mass production, most decisions have been made. The rest are frequent decisions usually made by lower-echelon personnel, with rules for making the decisions made by management.
. Explain the steps in decision making.
Good Decision Making is critical to all areas of life. Reaching a decision brings conclusions, enables change and helps move situations forward. However it can be a difficult task. Decisions often have strong emotional links, or their results can have effects on the needs and desires of certain individuals. These emotions and needs can cloud judgment, making reaching a decision a complicated process.
Following a set of guidelines and steps to assist in the Decision making process can help simplify it. Here are eight steps that add structure and simplicity to the Decision making process.
. Recognize and identify the problem
. Decisions are responses to situations or problems that need addressing. Therefore is important to have a clear definition of what needs addressing before attempting to go further in the decision making process. Managers must acquire accurate and reliable information so much so that any assessment of opportunities and problems will be also more accurate.
. Consider the nature of the problem that you are trying to resolve
. What is the type issue, problem, or situation you need to address? Is it problematic in terms of creating an awkward situation between individuals, is it needed to change direction of a business? Why does the problem need a decision? What are the results you are hoping to achieve by this decision?
. Generating alternatives
. It is important to gather all the information involved in the problem or question, so that informed choices can be made.
2. A manager then develops ways to solve problem and achieve objective once an opportunity has been identified or a problem diagnosed correctly. Managers may rely on their training, personal experiences, education and knowledge of the situation to generate alternatives. The alternative scan is standard and obvious as well as innovative and unique.
. Develop a list of possible solutions:
. List the possible decisions that could be made, and what their consequences would be.
. Select the best alternative:
. Look at the list drawn up in point 4 and choose the best solution for the situation.
. Execute the best choice:
. Sometimes the hardest part of making a decision is taking action. The best decisions are ones that deliver strong decision action.
. Follow Up and communication:
. A good decision needs to be followed throughout its process and constant communication made with those involved.
. Feedback:
. It is extremely important to gather feedback on a decision. This determines the overall success of and reaction to the decision.
Conclusion
When it comes to making decisions, one should always weigh the positive and negative business consequences and should favor the positive outcomes. This avoids the possible losses to the organization and keeps the company running with a sustained growth. Sometimes, avoiding decision-making seems easier; specially, when you get into a lot of confrontation after making the tough decision.
But, making the decisions and accepting its consequences is the only way to stay in control of your corporate life and time.
Reference:
http://www.businessdictionary.com
http://en.wikipedia.org
Norlida Kamaluddin, Rohaya Mohd Hussein, Lennora Putit, Principles and Practice of Management (MGT 420), Universiti Tecnologi Mara, Institut Perkembangan Pendidikan 2008
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[1] http://www.businessdictionary.com
[2] http://en.wikipedia.org
[3] Stoner
[4] Jones, George & Hill
[5] Principles and Practice of Management (MGT 420), Universiti Teknologi Mara