Decision process in Healthcare Management.pptx

It describes the decision process in healthcare management

1. D ecision Process Manisha.G Dr.Chobana.S 1 st year MHA

2. Introduction 2 Decision-making is an integral part of modern management. Decisions are made at every level of management to ensure organizational or business goals are achieved.  Decisions play important roles as they determine both organizational and managerial activities. According toTrewatha & Newport defines decision making process as follows:, “ Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem”

3. Decision making & Organizational Behavior 3 Decision making process can be regarded as check and balance system that keeps the organisation growing both in vertical and linear directions. Thus, decision making process seeks pre set goals To achieve these goals, company may face lot of obstacles in administrative, operational, marketing wings and operational domains.     Such problems are sorted out through comprehensive decision making process

4. Process of decision making 4

5. Types of decision making Programmed decision making Structured, routine, well-defined. Repetitive Based on standards, policies, guidelines. Judgment is objective. Middle/lower level. Non-programmed decision making Unstructured, novel, ill-defined. Non- repetitive Based on managerial intuitions. Judgment is subjective. Top-level. 5

6. Types of decision making Individual decision making More efficient Speed No discussions Clear accountability Consistent values Group decision making More effective More information & knowledge Diversity of views Higher-quality decisions Increased acceptance. 6

7. Decision making models Rational model of decision making Bounded rational model Garbage can model Political or coalition model 7

8. Rational Model : Decision making is a rational, linear process that will produce rational outcomes. It is used to explain microeconomic behaviour and is the accepted model in many disciplines up to the present. The steps in rational decision making can be described as follows: Identifying a problem that requires a decision; Gathering information and materials that will help solve that problem; Generating potential solutions to the problem; and Making a rational choice, selecting the best solution, and then implementing it. 8

9. Contd… It is a logical normative model. it suggests that the decision is being made in a stable, slow-moving environment and that the decision maker has ample time to gather all the information, reflect on all the alternatives, and reach a rational solution. 9

10. Bounded Rational Model : Introduced by Herbet Simon in 1960 To address the rational model’s potential weaknesses and incongruence with many decision making contexts, which are not benefiting from unlimited time and perfect information. Shown to be much more consistent with the way managers behave in that they are faced by time pressure and imperfect information which causes them to find a solution that will ‘satisfies’ rather than what might have been the best one. Rational model - routine decisions Bounded model - unfamiliar, non routine, potentially contentious issues. 10

11. Garbage Can Model : Michael Cohen, James March and Johan Olsen in 1972. Different from the two rationality based models. Not a sequence of steps that start with a problem and end in a solution. This model proposes four independent streams (problems, solutions, participants, and choice opportunities) An organisation acts as a ‘garbage can’ in which these streams flow. A decision will be made when problems and solutions can be connected during a time when there are choice ‘opportunities’. Relevant to organisations operating in a volatile business environment. 11

12. Political & Coalition Model : Richard Cyert and James March in1963. This view portrays the process of organisational decision making as : “ involving shifting coalitions of interests and temporary alliances of decision makers who can, for the purposes of a decision, come together and sufficiently submerge their differences to make a decision” This kind of decision making has been known to occur in government contexts. 12

13. Techniques of decision making : Brainstorming Nominal group technique Delphi technique Step ladder technique 13

14. Techniques of decision making : Brainstorming : During brainstorming, group members are encouraged to present their ideas how wild they are, while an appointed group member records all the ideas for discussion. Nominal group technique : Each group member writes down individual ideas for decision. Each member presents ideas orally. The ideas are written usually on the white board for all members to see and refer. All the ideas are discussed simultaneously. A secret ballot is conducted and members vote to their favorite idea without fear. Idea with maximum vote is selected. 14

15. Techniques of decision making : Delphi technique : Problems are defined by leaders and experts, questionnaires are developed and sent to participants. Responses are complied, summarized and evaluated. Steps are repeated until the solution is achieved. Step –ladder technique : It is similar to Delphi technique ,but there are some differences: In Delphi technique a leader or facilitator manages the group. In step-ladder technique, all members are equal . Delphi methods keep members anonymous . Step-ladder involves face to face interaction so everyone knows who are the other members . Delphi method is a lengthy process , while step- ladder is quicker . Delphi method is usually used when taking a major decision which requires input from large group of people . The Step-ladder technique works best with small group that makes wide range of decisions. 15

16. Conclusion: Strategic decision-makings and managers cannot be separated. They go inline together. Moreover, with the organization’s concern on the firm performance, strategic decision-makings are considered crucial to managers that manage the organization. Nevertheless, managers are affected with several factors in their strategic decision-makings for organization. These factors will directly and indirectly affect their well being of the organization . So, it is important to make the decision process effective and efficient to attain the pre-determined goal of the organization. 16

17. References : 17 https://www.managementstudyguide.com/what-is-decision-making.htm https://www.researchgate.net/publication/232703178_Organisational_behaviour_and_public_decision_making_in_the_EA_context

18. Thank you 18