QUES1 What are the various aspects of decision making?

ANS INTRODUCTION

Decision making affects just about every aspect of life, from personal matters to business project management. The same or similar concepts apply in just about all decision-making situations. Understanding the various aspects of decision making makes the process simpler and more straightforward for you and your group

CONCEPT

Ideas To make a balanced decision, it is important to have a brainstorming session to identify all possible solutions. A wide set of potential solutions increases the chances of resolving the issue successfully. This aspect of decision making is simpler when you have a group of people involved --- the more people in the group, the more likely you'll have a diverse and logical set of ideas to sort through.

Evaluation Another key aspect of decision making is the evaluation process. Once you have a complete listing of ideas and solutions, you go through each one to decide which has the best chance of succeeding. For business decisions, the process can include performing research and conducting focus groups. For a personal decision, the process can simply involve speaking to your loved ones about the intended solution.

Agreement Possibly the most difficult aspect of decision making is to come to an agreement to make a final decision in the matter. All group members must come together either to vote or come to some other type of consensus to guide the final course of action. This can take time --especially if the group abides by formal rules of order when making decisions. Even when you are on your own in the decision-making process, it can be intimidating to finally choose just one course of action.

Revisiting the Decision Once the decision is made, you must then monitor the effects of making that choice. For example, if you make a choice as a business owner to add a new product to your list of offerings, you should track sales and profit to see if that was the right decision. If you find that it is not working out, you can then move on to the next choice on your list.

QUES 2 Why is decision making so complex in todays business environment? ANS

QUES3 Identify similarities and differences between individual versus group decision making. ANS INTRODUCTION When there is no choice of action, no decision is necessary. The need for making any decision occurs only when some uncertainty as to outcome exists CONCEPT DIFFERENCES An individual can make a decision quicker than group can, of course, since only one person needs to be consulted. Group decision making, though it can be an arduous process, can help cement the group by allowing input from all members of the group

There are times when each decision making method is not appropriate. Avoid individual decision making if the decision directly affects the group. For example, making a blanket decision that everyone must work weekends will meet with opposition for reasons ranging from religious to other personal obligations. On the flip side, group decision making should be avoided if there is little chance that a group might reach a consensus. For example, a directive that all members of a department must carry out works best when the manager decides on the course of action

Decision making without a group's input or a decision made regardless of the group's opinion is, naturally, an individual decision. This is the more traditional decision making approach and can work effectively for a manager when the group's input is not required or in certain cases, desired Consensus decision making involves posing several options to the group and using the most popular option to make a decision. Consultation takes the opinions of the group into consideration when making a decision. Both methods require the group's participation and call for a manager who respects the opinions and input of the group in the decision making process

Group Decision Making:

1. Pros Everyone gets a voice. Each person feels heard. All of us is better than one of us. Author Unknown. More people take ownership because their idea was included in the decision. Creates a collaborative culture. More people step up and take initiativeassuming leadership positions.

2. Cons Process can be too slow. Its harder to move a mob than an individual. The decision can be watered down because too many compromises had to be made. No one person will feel it was really their idea. You run the risk of EVERYONE feeling slighted because their entire idea was not implemented.

Individual Decision Making:

3. Pros Its quick. Only one person has the ultimate responsibility for the decision so the others dont have to feel awkward if the decision turns out to be the wrong one. You dont need to water-down the decision by trying to appease too many other parties. You can go with your gut instinct and intuition.

Cons May lack the necessary information to make a fully informed decision. Emotion and impulse may take over. The decision may lack a balanced approach. The decision may be clouded by the subjectivity, prejudice and/or bias of the decision maker. SIMILARITIES 4. (i) Decision making is a process of selection or choice among alters native courses of action. The need for decision making arises only when more than one alternative exists for doing the work. 5. 6. (ii) The aim of decision making is to find out the best possible course of action. It is a rational and purposeful activity designed to attain well-defined objectives.

7. 8. Decisions relate means to ends. In order to identify the best alternative, it is necessary to evaluate all available alternatives. As decision making is always purposeful, there may just be a decision not to decide. 9. 10. (iii) Decision making is an intellectual or rational process. As a mental exercise, it involves considerable deliberation and thoughtful consideration of various factors influencing the choice. It is the end process preceded by reasoning and judgment. 11. 12. (iv) Decision making involves a certain commitment. A decision results into the commitment of resources and reputation of the organisation. 13.

QUES 4 Compare decision making versus problem solving. Determine whether or not it makes sense to distinguish the two from one another. ANS

COMPARISON Problem solving consists in looking at the potential causes of the problem. On the other hand decision making consists in the method of approaching to resolve the problem. You will have to involve in brainstorm to find out solutions to the problem in decision making. Lateral and creative thinking is important in good decision making.

Decision making in short can be called as the process of action plan. Action plan includes the calculation of the time needed to solve the problem. It also looks at the time needed for the implementation of the solution. It deals finally with the communication of the plan to all those involved in the implementation of the solution.

Problem solving consists in jotting down the description of the various causes of the problem in terms of question such as where, how, with whom and why. Decision making is all about finding solutions to all these questions such as how, where, with whom and why through the forming a plan that has to be implemented.

Problem solving itself is an experience to be undergone in every corporate establishment. Decision making on the other hand is the consideration of what have you learned from problem solving. Hence problem solving and decision making are integrated to a great extent

In contrast, decision making refers to a large array of tools one might use to successfully conclude one part of the problem solving process in order to move on to the next part. There are many types of decision tools including pareto charts, matrices, decision trees, various types of statistical analysis, etc. The list runs easily into the hundreds. While walking through the problem solving process you arrive at junctures where there is ambiguity (e.g., what is the root cause of the problem) or areas where data need to be reduced to move forward (e.g., which of these alternative solutions shall we select). These are the times to take out your tool kit, select and apply an appropriate tool, and move on to the next step in the problem solving process NO NEED OF COMPARISON 14. This commitment may be for short term or long term depending upon the type of decision. Decision making involves a time dimension and a time lags. 15. 16. (v) Decision making is always related to the situation or the environment. A manager may take one decision in a particular situation and an opposite decision in a different situation. In some situations, there may just be a decision not to decide. 17. 18. (vi) Decision making is a pervasive function of management. This function is performed by managers at all levels though the nature of decisions may differ from one level to another. Decision making is a continuous process. 19.

20. (vii) Decision making is a human and social process. It involves the use not simply of the intellectual abilities but also of intuition, subjective values and judgment. 21. 22. It is not a purely intellectual process. Perception and human judgment are indispensable and no technique can replace them. But knowledge and experience also provide basis for correct decisions. 23. (viii) The choice in decision making implies freedom to choose from among alternative courses of action without coercion. It also implies uncertainty about the final outcome.

QUES 5 Define decision style and describe why it is important to consider in the decisionmaking process ANS INTRODUCTION The manner in which a decision maker thinks and reacts to problems. It includes perceptions, cognitive responses, values, and beliefs. proposes that people differ along two dimensions in the way they approach decision making. The first is an individual's way of thinking. Some people tend to be rational and logical in the way they think or process information. Others tend to be creative and intuitive Directive Style: A person has this style if they have a low tolerance for ambiguity and are efficient, rational, and logical in their way of thinking. They focus on the short term and are quick to make decisions, usually resulting in a decision that has been made with minimal information and not carefully analysing other alternatives. Analytic Style: As opposed to the directive style, a person with an analytic decisionmaking style has greater tolerance to ambiguity. They are careful decision makers that like to be well informed and thoroughly assess their options. They usually have the ability to adapt or cope with unique and challenging situations.

Conceptual Style: Conceptual decision makers are generally very broad in their approach and consider all available alternatives. They are long-term oriented and are usually capable of formulating creative solutions to problems. Behavioural Style: People with a behavioural decision-making style work well with others, are open to suggestions, and are concerned about the achievements of their team. They generally try to avoid conflict and place importance on their acceptance by others. A good understanding of the various styles of decision-making each will allow you to recognise your own style and adapt accordingly to each situation CONCEPT IMPORTANCE IN DECION MAKING In the process of making an important decision, using the wrong style can lead to disaster. Imagine a commander using a consensus decision style while in the middle of a battle where every second could cost lives. Alternatively, using an autocratic style for a highly complex strategic decision could cut off the decision maker from the valuable input of functional experts. Knowledge. The most important requirement for making sound decisions is a deep understanding of all factors. The soundness of the decision depends on how informed the decision maker is. Initiative. Effective decision makers assume responsibility for beginning the decision-making process and seeing it through. They take an active part in making things better. Advice-seeking. Good decision makers know that they need help from others. They identify people who can make specific contributions to the decision-making process and ask them for their advice and counsel. Selectivity. Effective decision makers seek pertinent data. They avoid getting bogged down by extraneous facts and figures. Comprehensiveness. On the other hand, they look at all available options and consider every possible alternative so as to make the best choice. Currency. Good decision makers consider current conditions and take advantage of opportunities that exist at the time. Flexibility. Effective decision makers remain open-minded about new concepts and ideas. They are willing to change course or try a different approach if better results seem likely.

Good judgment. Sound decisions will not always result from merely following procedures. Decision makers must exercise their best judgment in considering factors particular to the situation.