Organisation and Decision Making

7/30/2019 Organisation and Decision Making

1/17

Organization

&

Decision making


2/17


3/17

Key foundation of ethical decision

making

Ethical intensity

The degree of

importance given to an

issue-related

moral/imperativeusually based on-

magnitude of

consequences,

probability of effects,social consensus and

concentration of effect.


4/17

Ethical principles andrules

There are individual and

group differences over

what influences ethical

and unethicalbehaviour-ranging from

those which justify self

serving decisions to

those that requirecareful considerations of

others rights and costs.


5/17

Concern for others

A careful determination

of who will receive

benefits or incur costs as

a consequence of adecision.


6/17

Benefits and costs

An assessment of the

benefits and costs of a

decision in terms of

determination of theinterests and values of

those affected


7/17

Assessment of rights

Focus on who is entitled

to participate in decision

making process duly

considering how toallocate the benefits and

costs, rights and

responsibilities at the

work place, culturalvariations in each

country and so on.


8/17

Stages in managerial decision

making

Managerial decision making starts with therecognition of a problem and concludes with theassessment of the consequences of the action

taken to solve it.Actual decision making may be more complex.

At times the manager may be required to deal

with small problems and sometimes withunexpected crises requiring more time foranalysis and solving it.


9/17

Stages in managerial decision making:

recognition focusinterpretation

Noattention

(choice of inaction)

consequences choice


10/17

1. Recognition stage

It is very often dependent upon the characteristics of

the manager and his or her experience in takingdecisions in the past and availability of newinformation.

In case of structured problems, the problem

recognition stage is straight forward when themanager becomes aware of the problem as soon as itarises.

But with unstructured problems, the problem

recognition stage is not immediately seen which canbe attributed to un clear or inadequate informationabout developments and trends in the environment.


11/17

People have to protect themselves against threatening

ideas or situations especially when a successful end

result or outcome is at stake.

Problem solution should be a part of a long drawn-outprocess.


12/17

2.Interpretation stage:

Problem interpretation stage calls for the manager togive meaning and definition to the issues or problemsthat have been recognized.

One option before the manager is to identify the cause

of the problem. For instance the HR manager tries to identify the

reason for a high turnover of the software engineersfrom the firm. This could have happened either

because of-looking for applicants in wrong places,poor selection procedures and inadequate training,lack of superior guidance, poor salary structure whencompared to industry average, over stress at workplace.


13/17

Another option would be not to give the due attentionto the problem.

Manager must take care to avoid various biases whichcould affect the decision making such as

Risk propensity (make or avoid decisions havingnegative outcomes)

Problem framing (either in negative or positiveterms)

Availability bias (over estimate occurrence of theproblem)

Confirmation bias (see only what people want to see) Law of small number bias (consider only a few cases

or samples)


14/17


15/17


16/17


17/17

References:

Organizational behaviour: Suja R.Nair

(Text & cases)

Publisher: Himalaya Publishing House

Documents

Organisation and Decision Making