Characteristics of Decision-Making.pptx

Characteristics of Decision Making

1. Characteristics of Effective Decision-Making Hi! Hello!

2. Characteristics of Effective Decision-Making Decision-making can be the single-greatest weight upon your shoulders if you don’t know how to manage stress or if the consequences are less than ideal. So, how do you know what a good decision looks like? Here are nine characteristics of a good decision: Good decisions positively impact others. This statement may seem obvious, but if it were, bad decisions wouldn’t exist. After all, anybody who is adversely affected by a decision immediately classifies that decision as bad. Of course, now you just need to find a common definition of "positive.“

3. Characteristics of Effective Decision-Making 2. Good decisions are replicable. People want to mimic a bad decision. 3. Good decisions foster opportunity. An effective decision empowers others to act. 4. Good decisions include others. Arriving at a conclusion that serves the company is a process. There are boxes to check off that ensure accountabilities are established and authorities are met.

4. Characteristics of Effective Decision-Making 5. Good decisions are executable. Integral to any decision is clarity around what that decision is. Clarity minimizes uncertainty, and although this may sound like an obvious statement, remember that what’s apparent to you may be newfound insight to others. 6. A good decision is systematic. Ruling out the  good criteria from the bad  requires time, resources, clear (there’s that word again) requirements as to what the goal is and judgment to estimate the probability of success. c Tack on the timeline, assets necessary and the conditions that define success and you’re pretty much on a one-way highway to execution without any U-turns (my metaphor for accountability avoidance).

5. Characteristics of Effective Decision-Making 8. Good decisions are pragmatic. Humans are creatures of emotion, which means eliminating emotion from a decision isn't feasible. However, what can be eliminated are self-serving emotional biases. 9. Good decisions involve self-awareness. If you’re tasked with deciding how to outline your company’s strategy for the next 10 years but you’ve never made a strategic outline, chances are you should defer to the next subject-matter expert. The point is, for a decision to positively impact others, foster opportunity or any of the aforementioned characteristics, you need to be cognizant of when you’re operating within your circle of influence and when you’re pushing its boundaries. Don’t be that person who clutches to decision-making authority because it makes you feel important -- defer to the person closest to the problem.

6. Nature and Importance of Decision-Making

7. Nature and Importance of Decision-Making 7 Essential Nature of Decision Making  1. Goal-Oriented Process: Decision-making is a goal-oriented process. It aims at achieving certain specific goals of the organization. 2. Selection Process: Decision-making is a selection process in which best alternative course of action is chosen from the given alternative courses of action.

8. Nature and Importance of Decision-Making 3. Continuous Process: Decision-making is a continuous process because a manager is required to take decisions continuously for different activities. 4. Art as Well as Science: Decision-making is considered both an art and a science.

9. Nature and Importance of Decision-Making 5. Responsibilities of Managers: Decision-making is the responsibility of managers at different levels of management. 6. Positive as Well as Negative: Decision-making can be both positive and negative i.e. it may be positive (to perform certain activities) or negative (not to perform certain activities).

10. Nature and Importance of Decision-Making 7. Future Course of Action: Decisions are made for future course of action based on the basis of past experiences and present conditions.

11. Three Approaches of Selecting an Alternative

12. Three Approaches of Selecting an Alternative experience research and analysis experimentation

13. Three Approaches of Selecting an Alternative Experience Reliance on part experience probably plays a larger part than it deserves in decision making. Experienced managers usually believe, often without realizing it, that the things they have successfully accomplished and the mistakes they have made furnish almost infallible guides to the future.

14. Three Approaches of Selecting an Alternative              c   People often argue that it should be employed more often in managing and that the only way a manager can make sure plans are right-especially in view of the intangible factors-is to try the various alternatives and see which is best.

15. Three Approaches of Selecting an Alternative Research and Analysis This approach means solving a problem by first comprehending it. Solving a planning problem requires breaking it into its component parts and studying the various quantitative and qualitative factors. A major step in the research-and-analysis approach is to develop a model stimulating the problem.

16. Conditions in Decision-Making

17. Managers make problem‐solving decisions under three different conditions: 1. certainty 2. risk 3. uncertainty.

18. Certainty Decisions are made under the condition of certainty when the manager has perfect knowledge of all the information needed to make a decision. This condition is ideal for problem solving. The challenge is simply to study the alternatives and choose the best solution.

19. Certainty When problems tend to arise on a regular basis, a manager may address them through standard or prepared responses called programmed decisions. These solutions are already available from past experiences and are appropriate for the problem at ha nd.

20. Risk In a risk environment, the manager lacks complete information. This condition is more difficult. A manager may understand the problem and the alternatives, but has no guarantee how each solution will work. Risk is a fairly common decision condition for managers.

21. Risk A  crisis problem  is an unexpected problem that can lead to disaster if it's not resolved quickly and appropriately. No organization can avoid crises, and the public is well aware of that.

22. Uncertainty When information is so poor that managers can't even assign probabilities to the likely outcomes of alternatives, the manager is making a decision in an uncertain environment. This condition is the most difficult for a manager. Decision making under conditions of uncertainty is like being a pioneer entering unexplored territory.

23. Uncertainty Uncertainty forces managers to rely heavily on creativity in solving problems: It requires unique and often totally innovative alternatives to existing processes. Groups are frequently used for problem solving in such situations. In all cases, the responses to uncertainty depend greatly on intuition, educated guesses, and hunches — all of which leave considerable room for error.

24. Thank you for listening ! 