Management and Decision making and Types of Decisions

Level of Management Decision making.
Type of Decision �( Level of Management) .
Very well explain the seven stages of Effective Decision Making and Characteristic of Effective Information.

1. Management & Decision Making Abdul Rashed Barakzai Chapter # 3

2. Introduction As companies migrate toward responsive e-business model, they are investing in new data driven decision application frameworks that helps them respond rapidly to changing market and customer need Successful Business Companies needs MIS to drive information that can support decision making. Managers, Professionals, and High level Management are responsible for taking decision to implement change Roll of Internet, Intranet, and web sites on Business

3. Level of Management Decision making Every organization has different Level of management Decision Making Level of Management Decision making still Exists Shape, Size and participants can be changed Culture of Decision Making Management Decision making must be Supported by Information technology Successful Organization Take Decision Base on: Strategic Management Tactical Management Operational Management

4. Strategic Management: Typically, a board of directors and an executive committee of the CEO and top executives develop overall organizational goals, strategies, policies, and objectives as part of a strategic planning process. They also monitor the strategic performance of the organization and its overall direction in the political, economic, and competitive business environment. 1- Strategic Management:

5. Tactical Management: Increasingly, business professionals in self-directed teams as well as business unit managers develop short- and medium-range plans, schedules, and budgets and specify the policies, procedures, and business objectives for their subunits of the company. They also allocate resources and monitor the performance of their organizational subunits, including departments, divisions, process teams, project teams, and other workgroups. 2- Tactical Management:

6. Operational Management: The members of self-directed teams or operating managers develop short-range plans such as weekly production schedules. They direct the use of resources and the performance of tasks according to procedures and within budgets and schedules they establish for the teams and other workgroups of the organization. 3- Operational management

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8. 1- Unstructured Decisions:  are those in which the  decision  maker must provide judgment, evaluation, and insights into the problem definition. Each of these  decisions  is novel, important, and nonroutine, and there is no well-understood or agreed-on procedure for making them. ( Strategic Level Management ) 2- Semi-Structured Decision:  is one in which most of the factors needed for making the decision are known but human experience and other outside factors may still play a role. A good example of an semi-structured decision would be diagnosing a medical condition ( Tactical Level Management ) 3- Structured decision: Making is an approach for careful and organized analysis of natural resource management decisions. Every decision consists of several primary Procedure. ( Operational Level Management ) Type of Decision ( Level of Management)

9. Decision Making Process: is Making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step by step decision making process. Decision Making Process: is a series of steps taken to determine the best option to be selected among different alternative. It helps to take the right decision. Decision Making Process :  Is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach increases the chances that you will choose the most satisfying alternative possible . Decision Making Process

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11. Identify the decision: In this stage you realize that you need to take the decision. We need to clearly define the nature of decision. The is very important stage and needs to be taken very carefully and should take longer time for the decision. 1. Identify the Decision 2. Gather the information 3. Identify alternatives 4. weigh the evidence 5. Choose among Alternatives 6. Take Action 7. Review your Decision

12. Collect relevant information before we take decision Select the trustable source of information This step involves both internal and external work Some information can be external needs to be searched ( Online, Book, people & etc ) Some information can be internal and needs self-Assessment 1. Identify the Decision 2. Gather the information 3. Identify alternatives 4. weigh the evidence 5. Choose among Alternatives 6. Take Action 7. Review your Decision

13. As you collect information, you will probably identify several possible paths of action, or alternatives. You can also use your imagination and additional information to construct new alternatives. In this step, you will list all possible and desirable alternatives.  1. Identify the Decision 2. Gather the information 3. Identify alternatives 4. weigh the evidence 5. Choose among Alternatives 6. Take Action 7. Review your Decision

14. Draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through the use of each alternative. As you go through this difficult internal process, you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching your goal. Finally, place the alternatives in a priority order, based upon your own value system. 1. Identify the Decision 2. Gather the information 3. Identify alternatives 4. weigh the evidence 5. Choose among Alternatives 6. Take Action 7. Review your Decision

15. Once you have weighed all the evidence, you are ready to select the alternative that seems to be the best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may very likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4. 1. Identify the Decision 2. Gather the information 3. Identify alternatives 4. weigh the evidence 5. Choose among Alternatives 6. Take Action 7. Review your Decision

16. You’re now ready to take some positive action by beginning to implement the alternative you chose in Step 5 1. Identify the Decision 2. Gather the information 3. Identify alternatives 4. weigh the evidence 5. Choose among Alternatives 6. Take Action 7. Review your Decision

17. Review your decision & its consequences In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision. For example, you might want to gather more detailed or somewhat different information or explore additional alternatives 1. Identify the Decision 2. Gather the information 3. Identify alternatives 4. weigh the evidence 5. Choose among Alternatives 6. Take Action 7. Review your Decision

18. Availability/accessibility: Information may be useless if it is not readily accessible in the desired form, when it is needed. Advances in technology have made information more accessible today than ever before. Reliability or objectivity: The information should be counted on to be trustworthy. It should be accurate, consistent with facts and verifiable. Inadequate or incorrect information generally leads to decisions of poor quality. Relevance/appropriateness: Information is good only if it is relevant. This means that it should be pertinent and meaningful to the decision maker and should be in his area of responsibility. Completeness: It should contain all the facts that are necessary for the decision maker to satisfactorily solve the problem at hand using such information. Nothing important should be left out. Although information cannot always be complete, every reasonable effort should be made to obtain it Characteristic of Effective Information

19. Concise: Too much information is a big burden on management and cannot be processed in time and accurately due to “bounded rationality”. Bounded rationality determines the limits of the thinking process which cannot sort out and process large amounts of information. Accordingly, information should be to the point and just enough – no more, no less. Timely: Information must be delivered at the right time and the right place to the right person. Premature information can become obsolete or be forgotten by the time. Cost-effective: The information is not desirable if the solution is more costly than the problem. The cost of gathering data and processing it into information must be weighed against the benefits derived from using such information Understandable: Information must be understood by the receiver so that he/She will interpret it correctly. Information must be able decodable to any abbreviations, shorthand notations or any other acronyms contained in the information. Characteristic of Effective Information

20. The contingency approach is a management theory that suggests the most appropriate style of management is dependent on the context of the situation and that adopting a single, rigid style is inefficient in the long term. Contingency managers typically pay attention to both the situation and their own styles and make efforts to ensure both interact efficiently. Contingency Approach