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Decision MakingPresented by:
EMILY JEAN OMANDAM
Massie (1987)- a manager can be viewed as a specialist in decision making Nature of Decision Making Process Decisions differ in substance scope and
method. Substance refers to specific areas of concern- facilities, teaching methods, salaries. Scope may affect the whole school or one person only. Method is the process by which how they are arrived at whether on the manager’s initiative or some advice of the personnel involved or specialist.
Conventional Model of Decision making by Nicolaidis ( 1960Recognition of the problemCollection of DataClassification and analysisInventory of meansListing of alternativesEvaluation of alternativesDecisionImplementationFollow-up and feedback
Pfiffner (1960) decision-making process tends to become circular, multidimensional and in conformity with the power structure of the organization. He stressed that it is a galaxy of numerous individual decisions. The sources of some are patently evident, but others are hidden in the inner sanctum of the human psyche.
Decision making by individuals
A course of action consciously chosen from available alternatives for the purpose of achieving a desired result. Three ideas are important in this definition- a choice, mental process, purposive
Massie (1987) has stated that decision-making process may be described in five step
A good decision depends on the maker’s being consciously aware of the factors that set the stage for the decision
A good decision is dependent upon recognition of the right problem
Search for and analysis of available alternatives and their probable consequences is the step most subject to logical and systematic treatment
The selection of solutionDecision must be accepted by the organization.
Decision making by Groups
Cooperative decision making is a process by which a group attempts to develop a composite organization mind. In large organization facing problem, decisions emerge from series of meetings called conferences, boards, task forces, or merely staff meetings.
A committee may be defined as any group interacting with regards to a common, explicit purpose with a formal authority delegated from an appointing executive.
For fact-finding, investigation and collecting information.
To avoid appearance of arbitrary decisions and secure support for a position
To make decisionTo negotiate between conflicting positions
taken by opposing interestsTo stimulate human beings to think creatively,
to generate ideas, and to reinforce thoughts advanced by others
To distribute information- to brief members of an organization on plans and facts
To provide representationTo coordinateTo train inexperience personnel
Advantages of CommitteeA decision can be approached from different point of view
points by individual specialist in a committeeCoordination of activities of department can be attained
through joint interaction in meetingsMotivation of individual members to carry out a decision
may be increased by the feeling of participation in the decision-making
Committees provide a means by which executives can be trained in decision-making.
Committees permit representation of different interest groups.
Group discussion is one method of creative thinking; a fragmentary idea by one member may create a chain reaction in the minds of other present
DisadvantagesConsidering the value of the time of each individual
member, committees are costlyThe length of time required to make a decision by a
committee makes its use inadvisable if a decision must be made promptly.
Group action may be lead to compromise and indecision.A superior line executive present at a meeting may
make the decision individually, with subordinates attempting to appear competent by proposing ideas they believe will make a good impression.
Committee decision may be reached by a method in which no one is held responsible for a decision; “Buck passing may result
Principles of Group ParticipationThe physical layout, size of group and general atmosphere
are important factors determining the effectiveness of problem solving.
Threat reduction is an important objective in the planning for group action so that the group will shift from interpersonal problems to group goals.
The best group leadership is performed by the entire group and is not the job of the chairperson and secretary.
Goals should be explicitly formulated by the groupShould retain flexibilityThe decision-making process should continue until group
formulate solution upon which it can form a consensusAny group should be made aware of the interaction process
by which the group arrives at a solution
APPROACHES TO DECISION MAKING
Administrative ProcessPlanning- determining goals, specifying objective,
developing strategies and making long range decisionOrganizing-selecting specific rational processes to
implement a plan, assigning primary roleStimulating- enhancing on the job satisfaction,
communicating problem and progress and providing supportive relationship
Evaluation- process of delineating, obtaining and providing useful information for judging, decision alternatives
The Systems Approach – 5 stagesIdentifying the nature of the problemDetermining solution requirementsChoosing a solution strategyImplementing a solution strategyDetermining performance effectiveness
Has fostered the use of management tools and techniques- needs assessment, MBO, Planning-Programming Budgeting System (PPBS), input/output analysis and program evaluation and review technique/critical path method(PERT/CPM)
MODELS OF DECISION MAKING PROCESS
Identify the
problematic state of the system
Classify and define
the proble
m
Decision Maker
Perceptual screen
Formulate and weigh alternativeA1
Estimate Outcome
Source: Lipham; see Culbertson (1974
A2 Estimate Outcome
A3 Estimate Outcome
Make achoice
Implement and evaluate decision
Societal, organizational and individual values
Decision Making Competencies of the School ManagerAbbot (1974) has identified effective decision
making skills of a school managerSkill in differentiating among the types of decisionSkill in determining the amount and type of
information needed to reach each decisionSkill in determining the involvement of other
people in reaching the decisionsSkill in establishing priorities for actionSkill in participating both intended and
unintended consequences of decision
Dimension of Decision Making Decision behaviorDecision roleDecision involvement
Personality Factors in Decision MakingThe economic- what is useful and practicalThe aesthetic- his highest value lie in harmony and
individuality, pomp and powerThe theoretical – chiefly interested in the discovery
of truth for its own sake, in diversity and rationalityThe social- loves people; other person are ends: he
is kind sympathetic and unselfishThe political- interested primarily in power,
influence or renownThe religious- his highest value is the greatest
spiritual and absolutely satisfying experience
Erich Fromm’s Typology in Classifying ExecutivesThe Receptive OrientationThe Exploitative Orientation The Hoarding OrientationThe Marketing Orientation
DistinctionsDecision making- describes the process by
which the course of action is selected as a way to deal with specific problem
Choice making – is part of decision making and it refers to the narrow set of activities involved in choosing one option from the set of alternative options
Problem Solving refers to the broad set of activities involved in finding and implementing a course of action to correct an unsatisfactory situation.
Types of Decision
Programmed decisions- are those made in
accordance with some habit, rule or procedure.
Nonprogrammed decision- are those that deal with unusual or exceptional problems
When Should Managers Pass a Problem to a Superior?A YES to any of these questionDoes it affect other departments?Will it have a major impact on the superior’s
area of responsibility?Does it require information available only at a
higher level?Does it involve a serious breach of our
department budget?Is this outside my area of responsibility or
authority?