TYPES OF DECISIONS & DECISION MAKING PROCESS Monday, Dec 8 2008 

A decision is a choice made between 2 or more available alternatives.

Decision Making is the process of choosing the best alternative for reaching objectives.

Managers make decisions affecting the organization daily and communicate those decisions to other organizational members.

Some decisions affect a large number of organization members, cost a great deal of  money to Carry out, or have a long term effect on the organization. Such significant decisions can have a major impact, not only on the management systems itself, but on the career of the manager who makes them.

Other decisions are fairly insignificant, affecting only a small member of organization members, costing little to carry out, and producing only a short term effect on the organization.

TYPES OF DECISIONS:

PROGRAMMED DECISIONS

Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines.

NON PROGRAMMED DECISIONS:

Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.

5 ELEMENTS  OF THE DECISION SITUATION:

  1. The Decision Makers
  2. Goals to be served
  3. Relevant Alternatives
  4. Ordering of Alternatives
  5. Choice of Alternatives

DECISION MAKING PROCESS:

Decision making steps this model depicts are as follows:

  1. Identify an existing problem                                                                      
  2. List possible alternatives for solving the problem                       
  3. Select the most beneficial of these alternatives.                           
  4. Implement the selected alternative.                                                        
  5. Gather feedback to find out if the implemented alternative is solving the identified problem.

RECESSION STRATEGY – Honour your Vision and Core Values Monday, Nov 24 2008 

What should you do when in Recession?

How to Create the right Recession Strategy?

Maybe, more than anytime else, Recession is the time for the companies to be true to their Vision, get more focused on fulfilling their mission and dedicatedly honour their core values.

This is the time, when the companies and their top management are tested by the employees, customers and all stake holders. 

Are they visionaries or are they just another bunch of opportunists?

Do they really have a Vision or they have a Vision Statement as a good PR exercise.

What are their Real Core Values? or are there any core values at all, except self preservation and survival.

The difference between great companies, visionary companies and ordinary companies is very vividly visible in the way they deal with the challenging times like Recession.

This is where the rubber meets the road. This is where the CEO and the board have to walk their talk.

Do all those hours spent in the vision mission exercises mean anything?  OR the vision the first casualty of the recession.

What is the value of the Core Values created by the top management, investing some huge amount of man hours and a great amount to time and money?

All the companies, who will dump their vision and their core values at this time, are being short sighted.

Next Quarter, next financial year, when you would have survived the tough times, when you look back at those people, will you be able to talk big? will you be able to get everyone aligned on any big vision? 

 

How do you honour your values and fulfill your vision – when you are worried about going down?

That is the time, more than any other time in your life, to honour your values and be true to your vision.

This is what differentiates the originals from the fake, the men from the boys, the winners from the also rans.

 

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