Decision-Making

Mahesh K Prasad
Head-Human Resources

Response to a Situation
Put your head in the sand
- ignore / avoid

Act without thinking

- do the first thing that comes to your mind

Positively decide to do nothing Take action only after you have gathered information and given the matter some thought

Art of Decision-Making
Asks for personal & interpersonal skills
Fact finding Logical Thinking Creativity Analytical Ability Sensitivity to others Assertiveness

@ Decisions
Making decisions Getting people to implement decisions

Which is more tough?

Importance
Well-being and even survivalof an individual and of an organisation depend almost entirely on the quality of its Decision-Making process.

You = ?
The decisions that you make.

Your decisions are vital to your effectiveness.

They will be reflected in your performance and the results you achieve.

Your Organisation = ?
The decisions that you all make.

Your decisions are vital to your organisations effectiveness.

They will be reflected in organisations performance and the results.

Decision = ?
The mean by which you move your work on, to achieve your tasks and goals.

The choice
The conclusion

Types of Decisions
Operational Strategic Routine Urgent

Programmed
Unprogrammed

Consultative
Problematic

Styles of Decision-Making
The authoritarian The democratic

Approach of Decision-Making
Thinking Approach Intuitive Approach

Systematic Approach

Thinking Approach
Barriers to think
Emotional involvement

Closeness to the decisions (attachment)

Lack of time Pressure from others

Intuitive Approach
The hunches that tell us what is right?, even though we cant explain why?

The gut feelings / instinct

Left brain + Right brain
(Reason) + (Intuition)

Systematic Approach
1. Setting Objectives 2. Collecting Information 3. Identifying alternatives / options 4. Evaluation 5. Selection 6. Implementing & Monitoring Change

1. Setting Objectives
Overall objective
- long-term achievement

Immediate objective
- immediate achievement

Overall objective
It creates a challenge and provide a common direction

It provides an opportunity to shape the future.

Overall objective of an Organisation

What is the purpose of our organisation? What business are we in? Who are our customers? Who are our competitors? What resources do we have? What do we want to achieve in 1/3/5 years time?

Overall objective of a Team / Department

How do we help the organisation to achieve its objectives? What job are we being paid to do? Who are our customers? What are our budgetary constraints?

What do we want to achieve in 1 years time?

Overall objective of an Individual

What is the purpose of my job? What contribution can I make to achieve teams objectives? How does my work differ from that of other people?

2. Collecting Information
Relevant Appropriate details External Corporate

Accurate
Complete Timely

Internal
Income-expenditure

Ask questions for information

Why? Who? What? When? Where? How?

The questions
Why?
did this decision / problem arise? do we need to find a solution?

Who?
What?

is affected?
should be involved in making decision? are the true facts surrounding this decision?

When?
Where? How?

did the problem arise?

the decision must be made? did the problem arise? what area is affected? can the relevant information be identified? can it be obtained?

Sources of information
Human sources Written sources

IT sources

3. Identifying alternatives / options

When you are faced with a decision it is always tempting to select the most obvious option.

But sometimes the best solution is not the one that stares you in face as you contemplate the issue.
It is often the creative idea.

Creating options
Never assume your list of options is exhaustive Test the constraints. Are they real? Use your imagination to create more. Check that you are not making unnecessary assumptions.

Creative thinking techniques

Brain-storming Ideas writing

Mind mapping
Lateral thinking

Lateral thinking technique : 6 Thinker Hats

WHITE RED Data & Information Feelings, emotions & intuition

BLACK

Caution and critical judgment

YELLOW Optimism and positive point of view

GREEN
BLUE

Creative efforts
Organising & controlling

4. Evaluation
Evaluate options on the basis of: Feasibility

Acceptability
Risk

Personal Attributes.Play
Experiences & intelligence Values & beliefs

Personality & interests

Aspirations & expectations

5. Selection
Pros & Cons Consensus

Voting
Clustering

negotiation

Ask yourself finally.

Am I happy and confident @ this decision?

Will it be acceptable to all concerned?

If not, how am I going to pursue?

Is it ok to set this as a precedent for future decisions?

Did I give full consideration to all options? Did I think @ consequences of this decision?

6. Implementing & Monitoring Change

Implement decision Check whether things are working as you anticipated Admit the mistakes, if any

Learn

Summary ..
1. Identify your overall objectives and keep them firmly in your mind. 2. Be clear about the purpose of the decision 3. Adopt the habit of thinking hard 4. Do not be afraid to use your intuition

5. Be prepared to spend time on collecting high quality information

Summary ..
6. Give yourself time to work on a problem 7. Be able to differentiate between urgent decisions and important ones. 8. Involve as many people as necessary and use their expertise. 9. List and evaluate your options 10. Talk to your colleagues, friends and family @ your problems.

Summary ..
11. Use all the resources available 12. Use your imagination and that of others too to come up with new ideas 13. Learn from your mistakes by monitoring the outcome of your decisions

14. Make decisions as often as possible practice makes a man perfect !

Thank You !