DECISION MAKING Flashcards
is a key skill in the workplace, and is particularly important to become an effective leader.
Decision Making
Types of Decision Making
- Non-Progammed Decision
- Programmed Decision
TYPES OF DECISION MAKING IN MANAGEMENT
- Decisive
- Flexible
- Hierarchic
- Integrative
COMMON DECISION BARRIERS
1.Anchoring
2. Statu quo
3. Confirming Evidence
4. Illusions of Control
5. Framing effect
6. Discount the future
7. Time Pressure
8. Social realities
form of participatory process in which several individuals collectively examine problems or situations, think and assess options of actions.
Group Decision Making
Decision Making Process
- Pinpoint the purpose of the decision
- Information gathering
- Principles for judging the options
- Brainstorm and Analyze different alternatives
- Evaluate the choices
- Pick the finest option
- Implement the decision made
- Assess the result
Common group DM Methods
- Brainstorming
- Dialectical Inquiry
- Nominal Group Technique
- Delphi Technique
Levels of Management
- Top Management - Strategic Plan
- Middle Level Management - Tactical Plan
- Lower Level Management - Operational Plan
Planning is deciding in advance what to do, how to do it, when
to do it, and who is to do it. Planning bridges the gap from
where we are to where we want to go.
Koontz and
O’Donnell
(1972)
TYPES OF PLANS USED BY MANAGERS
- Plans according to Time Frame
- Plans according to Level of Detail
- Plans according to Managerial Level
Plans according to Time Frame
- Long term plan
- Medium term plan
- Short term plan
plans that go beyond three or more years into the future
Long term plan
plans that cover time periods of one to two years
Medium term plan
plans that cover one year or less
Short term plan
These are the plans that need to be detailed, clearly defines and easily understand to
specify the necessary action to achieve objectives
Plans according to Level of Detail
involves complex issues and procedures that considered as high priority areas.
High Level
pertain to medium term goals
Medium Level
simpler and associated with routinary functions
Low Level
Plans according to Managerial Level
- Strategic plan
- Tactical plan
- Operational plan
the top level planning which involves making decisions about the
organization’s long term goals.
Strategic plan
the middle level management planning which refers to procedures and
transformation of strategic plans with specific goals
Tactical plan
lover level management planning which involves routine tasks repeatedly done by the firm’s lower level units
Operational plan
