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6
3) Planning & Forecasting: -
The essence of planning is forecasting. Forecasting means
looking ahead & making assumptions about the future.
Forecasting is not speculation. It involves logical &
intelligent guess work. Forecasting provides basis for
planning. It helps management to make assumptions
about future. It forms the basis for development.
Planning in various areas like purchase of raw material,
production, marketing is based on forecasting.
Forecasting describes what will happen in future.
4) Planning & Decision Making: -
Decision making is a process of selecting a better course
of action from available alternatives. Decisions are
taken about the use of organizational resources. It is an
important part of planning. Decision making is wider
term. It includes organizing, directing, controlling & co-
ordination. 7
5) Planning is essential at each level: -
9
PROCESS OF PLANNING
The steps involve in planning process are described as
follows:-
10
1. Identification of problems & awareness of
opportunities:-
The manager must identify the problems while planning
so that suitable action can be taken. This will help to
take further steps for completing the objectives.
Planning starts with analysis & external environment.
This is essential for businessmen to be aware of
opportunities in the market. They must consider
changes in consumer demand, number of competitors,
change in habits, change in technology etc. At the same
time the businessmen has to conduct internal analysis of
its strengths & weaknesses. It means it has to examine
its resources & production.
E.g. An audio cassette manufacturer must have awareness
of new opportunities in the market. At the same time he
has to verify availability of resources while planning.11
2) Establishing Objectives: -
The entire planning activity is directed towards
achieving the objectives of the enterprise.
Determining objectives is a real starting point of
planning process. Once the objectives are fixed it is
necessary to finalize objectives for various
department. E.g.
1. Increase sales by 30% or 40%
2. Provide better working conditions to workers.
3. Reduction in cost of production by 25%
12
3) Establishing Planning Premises: -
On the basis of information collected assumption about the
future should be made. This process is known as planning
premises. Premises are forecast about the future. Premises
may be internal or external; it may be controllable &
uncontrollable. Normally, internal premises are controllable &
external are uncontrollable. Internal premises include capital
investment, availability of material, labour & financial
position. It includes the part of decision making & external
premises include economical, social, political & competitors.
It also includes government policies.
4) Determining Alternative Courses: -
In this step various possible course of action or plans are
developed to achieve a particular object.
5) Selecting Ideal Courses of Action: -
After the careful examination of various alternatives ideal course
of action, the most suitable course of action or plan is selected
to achieve pre-determine objective.
13
6) Formulation of Derivative Plans: -
Once the overall plan is selected it becomes essential
to fix the detail sequence & timing of the plan. Then
subsidiary or derivative plan is to be considered.
Primary plan of action is decided by preparing
separate derivative plans for each section or division
of the enterprise.
7) Provision for Follow-up: -
Planning is always followed by action. Some
modifications may be required for achieving pre-
determined objective & adequate follow up provides
assurance about fulfilment of objective.
14
TECHNIQUES OF PLANS
15
1] Objectives:-
Objectives are of broad purpose for which organization
comes into force & decisions are taken for attainment of
objectives
2] Policies: -
Policies are general statements of principles of completion
of objectives. They help as guideline for actions &
decisions.
Policies may be classified: -
1. Written or Unwritten
2. Originated or Imposed
Originated policies means implemented by Top Level
Management.
16
Imposed policies means directed by outsiders.
A good policy includes following points:-
1. Clear & Understandable
2. Related to important objectives
3. Based on judgment
4. Stable & can be changed according to situation
5. It should be accepted by all.
Policies are made at various levels. Policies should be
properly communicated to all levels. Out dated
policies should be removed.
17
3] Procedure: -
It makes a fix path to be taken to achieve the objective. It helps
in establishing the way to perform the work. Procedure should
be stable, flexible or modified. It changes according to
department. Procedure may be durable like policies. It provide
basis for control. Due to procedure there is uniformity in the
work. It helps in training for new employees.
4] Programme:-
It is comprehensive plan. It includes use of different resources in
the organization in particular time. It also shows line of action
to be taken by whom, when & where. They are specific plan
of workers to attain in particular sequence. Objectives,
policies, procedure help to concentrate on a particular course
of action & program give definite shape to achieve that target.
18
Program may be repetitive or non-repetitive, major or minor.
Repetitive programs are called Routine Planning (production).
Non-repetitive is called as Creative Planning. Sometime instead
of program method component planning is accepted for getting
better results.
5] Strategy: -
Strategy is a special land of plan which is formulated for meeting the
challenges for competitors. Strategy is developed by making use of
plans of the competition as a background. It is a choice of the
means of available resources for achievement of objectives.
1] E.g. Increase sales level
Company can choose any one or two strategies for achieving the
objective:
1. Reducing selling price
2. Better quality
3. After sales services.
19
6] Budget: -
It is define as financial or quantitative statement prepared
for definite period of time. It is defined as a blue print
or projected plan of action for definite period of time. A
budget is examination of future operation of business.
Essentials for effective budgeting: -
1. Support of Top Level Management.
2. Adequate accounting system.
3. Clear cut define authority & responsibility.
4. Formulation of budget committee.
5. Clearly define business policies.
6. Degree of flexibility.
7. Statistical information. 20
Meaning and concept of Directing :
Directing is an important element of management without which
nothing in the managerial process can achieve success. Direction is
the very essence of management. In fact, it is the sum total of all
managerial efforts to see the organisation marching towards its
defined goals.
The managerial function of directing is like
the activities of a teacher in a classroom. In order to teach, a
teacher has to guide his students, maintain discipline, inspire them
and lead them to the desired goal. It is a very important function in
the management of any enterprise. It helps the managers in
ensuring quality performance of jobs by the employees and
achievement of organisational goals. It involves supervision,
communication and providing leadership to the subordinates and
motivating them to contribute to their best of capability. In this
lesson we shall learn about this function in detail. 21
While managing an enterprise, managers have to get
things done through people. In order to be able to do so,
they have to undertake many activities, like guide the
people who work under them, inspire and lead them to
achieve common objectives. An office manager, for
instance, has to supervise the activities of his
subordinates, i.e., typists, office assistants, dispatchers,
accounts clerks, etc. He has to issue instructions to them
and describe and illustrate the work and related
activities. He has to tell them what to do, and how to do
it. The office manager can plan, organise and appoint
people, but he can not get things done, unless he assigns
specific duties to his subordinates and motivates them
to perform well. All these activities of a manager
constitute the directing function.
22
Definition of Directing :
According to S.S Chatterjee, Direction is the sum
total of managerial efforts that is applied for guiding
and inspiring the working teams to make better
accomplishments in the organisation.
31
vi) Principle of Leadership:
According to this principle, while giving directions to the
subordinates a good leadership must be provided by the managers.
By this, subordinates get influenced by the managers. In this
situation, subordinates act according to the wish of the managers.
vii) Principle of Follow Through:
According to this principle, it must be monitored by management
as to what extent the policies framed and issued directions have
been enforced. Thus, it must be seen whether the employees are
following the management or not.
If yes, then to what extent. As per this principle, the job of
managers is not to sit idle after framing policies or issuing
directions but to continuously take feedback. The advantage of this
will be that if there is any problem in implementing a policy or a
direction it can be removed then and there.
32
33
34
35
FUNDAMENTALS OF CONTROLLING
36
CONTENTS
Concept of controlling.
Features of controlling.
Controlling and other functions.
Importance of controlling.
Steps in controlling.
Establishment of control standards.
Measurement of performance.
Comparison between performance and standards and the
communication.
Correction of deviation from the standards.
37
CONCEPT OF CONTROLLING
38
One of the managerial functions like
planning, organizing, staffing and directing.
Process of gathering and feeding back
information about performance so that
decision makers can compare actual results
with planned results and decide what to do
about any apparent discrepancies or problems.
Helps to check errors and take corrective
measures so that the deviation from standards
are minimized and goals of the organization
are achieved in a desired manner.
39
FEATURES OF CONTROLLING
Control is forward looking :
One can control future happenings and not the past.
Managers suggest corrective actions for the future period.
Control is both an executive process and a result :
Each manager has to perform control function in the
organization.
Nature, scope and limit of the control function may be
different for different managers.
The word control is preceded by an adjective to
designate control problem : quality control, inventory
control, production control, administrative control etc.
40
Control is a continuous process :
Managerial control follows a definite pattern and
time table, month after month and year after year on
a continuous basis.
A control system is a coordinated integrated
system :
Data collected for different purposes should be
reconciled with one another.
Control is a single system, but more accurate to
think of it as a set of interlocking subsystems.
41
CONTROLLING AND OTHER FUNCTIONS
Planning as the basis : Reciprocal relationship
Plan Goals and objectives, directs the
behaviour and activities in an organization,
affects controlling.
Control Measures these behaviour and
activities, affects planning.
Action as essence :
Control Emphasizes what actions can be
taken.
Important for organizational effectiveness.
42
Delegation as the key :
Control action can be taken by only by the
managers who are responsible for performance
and have authority to get things done.
Controllable and uncontrollable factors.
Information as the guide :
Control action guided by adequate information.
Management information and management
control are closely interrelated.
Information about performance, standards and
contribution of a manager.
43
IMPORTANCE OF CONTROL
Adjustment in operations :
Objectives basis of control.
Adjustment done through control.
Policy verification :
Policies generate the need for control.
Managers set certain policies which become the
basis and reason for control.
Verify the quality of policies.
Managerial responsibility :
Managerial responsibility created through
assignment of activities to various individuals.
44
Starts at the top level and goes down to the bottom
level.
Manager is responsible for the ultimate performance
of his subordinates.
Psychological pressure :
Psychological pressure on individuals to perform
better.
Rewards and punishment based on the performances.
Coordination in action :
Coordination is achieved through proper
performance.
Manager coordinates the activities of his
subordinates to achieve the organizational goals. 45
Organizational efficiency and effectiveness :
Proper control ensures organizational efficiency
and effectiveness.
Control system brings the organization closer to
its objectives.
46
STEPS IN CONTROLLING
Control is reciprocally related to planning :
Draws attention to situations where new planning
is needed.
Provides data upon which plans can be based.
Various steps in control process which are
necessary in its relationship to planning :
Establishment of control standards.
Measurement of performance.
Comparison between performance and standards
and the communication.
Correction of deviation from the standards. 47
1. ESTABLISHMENT OF CONTROL STANDARDS
Plans - goals, objectives, targets to be achieved. Actual
results are measured against them.
Precision :
Great precision Standards are set in quantities. E.g.
Physical Volume of products, man hour. Monetary Costs,
revenues, investment
Less precision Standards are in qualitative terms. E.g.
Human relations.
It is also important to decide the level of achievement
which will be regarded as good or satisfactory.
Desired level of performance - reasonable , feasible, some
amount of flexibility , stated in terms of range (maximum
48
and minimum).
2. MEASUREMENT OF PERFORMANCE
Involves measuring the performance in the work in terms
of control standards.
Methods of measuring performance :
Quantitative Physical and monetary terms, easily and
precisely measurable.
E.g. Production units, sales, volume, profits etc.
Qualitative Intangible, cannot be measured precisely.
E.g. Human relations etc.
Techniques Psychological tests, opinion surveys.
Measurement must be (i) clear, simple and rational, (ii)
relevant, (iii) direct attention and efforts, (iv) reliable, self
announcing, and understandable without complicated
49
interpretation or philosophical discussions.
3. COMPARING ACTUAL AND STANDARD PERFORMANCE
Steps :
Finding out the extent of deviations.
Identifying the causes of such deviations.
Accurate standards and accurate measurement of actual
performance are very important for clear revelation of
variations.
Required standards achieved :
No further managerial action is necessary.
Control process is complete.
Required standards not achieved :
Extent of variation may differ from case to case, depends
upon the type of activity.
50
Strict compliance with standards or permissible
limit of variation.
E.g. Engineering products a very minute
variation may be significant.
When the deviation between standard and actual
performance is beyond the prescribed limit, an
analysis is made of the causes of such deviation.
Controllable factors Person concerned will take
necessary corrective action.
Uncontrollable factors Person concerned cannot
be held responsible.
Communication of data to the person who can take
corrective action.
51
4. CORRECTION OF DEVIATIONS
Organization is not a self regulating system.
Actions should be taken to maintain the desired
degree of control in the system or operation.
Control actions :
Review of plans and goals and change therein on
the basis of such review.
Change in the assignment of tasks.
Change in existing techniques of direction.
Change in the organization structure.
Provision for new facilities.
52
DESIRED IMPLEMENTATION CORRECTIVE
PERFORMANCE OF CORRECTIONS PLAN ACTION
MANAGEMENT ANALYSIS OF
ACTUAL
PERFORMANCE
CONTROL CAUSES OF
PROCESS DEVIATION
MEASUREMENT COMPARISON
IDENTIFICATION
OF OF ACTUAL
OF DEVIATION
PERFORMENCE AND STANDARD
53
Techniques of controlling
54
TRADITIONAL CONTROL
Personal Observation: This is oldest method
of controlling. Manager get quick information
about the employee and this in turn put the
employee to focus more on the work rather to
waste time.
Statistical Data:
Statistical data may be used in the form of
charts, tables and graphs. The presentation
quality depends upon the accuracy of the data.
Such reports are used for managerial control.
55
Break Even Analysis
Helpful to evaluate the cost of production, volume of
production, sales and revenue generated. Point
where there is not profit no loss is known as break
even point.
BEP = Fixed Cost
SP/U VC/U
Budgetary Control
It is the oldest technique of control. It provides the
standard by which actual operations can be
evaluated to know variations from the planned
expenditures.
56
MODERN TECHNIQUE
Management information system : At every function
organization has to take important decisions. Quality of
decision is directly linked with the nature and quality of
information provided. An effective information system is
vital for efficient decision and management.
Programme Evaluation review Technique:
PERT includes planning, monitoring and controlling of
project. It is helpful in project management problems like
construction , promotion of new product or new launch,
installation etc. It identify the component activities
decides the sequencing of the activity analyze the time
required to complete the activity and improve upon the
initial plan through modifications. Control the project.
57
Critical Path Method:
CPM is like PERT but is applicable for those project
where the activity time is well known.
Management Audit:
It is a comprehensive and constructive review of the
performance of management team of any
organization. It is an aid for evaluation management
performance.
58
Problem Solving &
Decision Making at the
Workplace
59
Objectives
At the end of this session, you will be able to:
Identify problems that are general to every workplace
and those that are specific to your organization
Determine how to solve problems you face as a
Supervisor using a problem solving model or
fishbone analysis
Identify the characteristics of an effective problem
solver
Determine the ingredients for good decision making
Effectively make collaborative decisions with your
team using the gradients of agreement tool.
60
Content
1. Introduction to Problem Solving and Decision
Making
2. Problem Solving
Types of Problems encountered at the Workplace
Approach to Problem Solving
Characteristics of an Effective Problem Solver
3. Decision Making
Types of Decisions
Ingredients for Good Decision Making
The Decision Making Process
Gradients of Agreement
How to Improve Decision Making 61
INTRODUCTION
TO PROBLEM SOLVING
&
DECISION MAKING
62
Introduction to problem solving & decision
making
Problem solving
Is bridging the gap between the way things are and the
way they ought to be
It is focused on the past
Usually analytical
Operational
Done at lower levels
A problem is
A present unsatisfactory state that needs to be changed to
a desired state as soon as possible
Some deviation from the expected standard which
prevent the achievement of objectives
63
Decision making
Is a broader concept
It is the act of making a choice between two or
more options
It is focused on the future
Often creative
Directional
Done at senior levels
Problem solving is therefore
part of decision making
a subset of decision making
64
2. PROBLEM SOLVING
65
Types of Problems encountered at the
Workplace
Problems abound in every workplace due to various
issues such as the need to
collaborate and work with various types of
people,
meet targets and deadlines,
work within tight budgets,
gain the endorsement and praise of supervisors
work within the norms and culture of the
organization etc
66
Types of Problems encountered at the
Workplace
There are specific problems which are common to every
workplace because workplaces are human institutions and
human beings are the same every where.
Communication problems
Attitude problems
Interpersonal challenges between supervisor and
subordinate or among your subordinates
Ethical problems
What are some of
Poor performance these problems?
Discrimination and/or harassment
67
Types of Problems encountered at the
Workplace
There are another set of problems that are peculiar to an
organization for various reasons for example as a result of
Policies that are unique to your workplace
Processes that should be followed for various work
related issues
Types of clients the organization provides services to
Other constraints at work ie. Inadequate resources,
equipment etc.
72
a. The problem solving model
The problem solving model is a step by step approach to
solving problems developed by various writers and
modified by many more. Some have it in 5, 6, and even 8
steps. The approach is as follows: What is the specific problem you are
faced with? Write this down in clear
simple language and as objectively as
possible
73
The problem solving model
4- develop solutions and choose the best
5- implement the solution Identify all the features of
6- evaluate the solution an ideal solution, including
the conditions it has to
satisfy
Eliminate solutions which
Take the appropriate do not satisfy the
action and monitor its conditions/requirements
effects Assess the risks
associated with the 'best'
Review the ultimate solution
success of the action Decide to implement this
solution
74
The problem solving model
The importance of understanding and using a model
is that the solution will be the result of facts and
analysis rather than of opinions and feelings.
Identification of the real problem is extremely
important.
If the wrong cause and solution for that cause is
selected, the problem will still be there.
75
b. Fishbone analysis
Fishbone diagram is an analysis tool which provides
a systematic way of understanding problems and the
root causes of those problems. The design of the
diagram looks like the skeleton of a fish hence, it is
referred to as the fishbone diagram.
Invented by Dr. Kaoru Ishikawa, a Japanese quality
control statistician, also referred to as the Ishikawa
diagram or cause-and-effect diagram.
Fishbone diagram is of great value in assisting teams
in categorizing the many potential causes of
problems or issues in a systematic way and helps
identify root causes. 76
Fishbone analysis
It is drawn as part of a brainstorming session, the
central problem is visualized as the head of the fish,
with the skeleton divided into branches showing
contributing causes of different parts of the problem.
It is used when
You need to study a problem to determine the root
cause
Want to study all the possible reasons why a
process is having difficulties or problems.
To study why a process is not performing properly
and/or producing the expected results 77
Fishbone analysis
How is it used?
Draw a fishbone diagram
List the problem/issue to be studied in the head of
the fish
Label each bone of the fish. The major categories
typically used are:
The 6 Ms: Methods, Machines, Materials,
Manpower, Measurement, Management
The 4 Ps: Place, Procedure, People, Policies
The 4 Ss: Surroundings, Suppliers, Systems,
Skills 78
Fishbone analysis
Label each bone with one of these categories and for each
category try to identify factors that account for the problem
in each category. Continue asking, Why is this happening?
and put additional factors .
Continue until you no longer get useful information as you
ask, Why is that happening?
Analyze the results of the fishbone after you and your team
members agree that an adequate amount of detail has been
provided under each major category.
Do this by looking for those items that appear in more than
one category. These become the most likely causes.
79
For those items identified as the most likely
causes, the team should reach consensus on
listing those items in priority order with the
first item being the most probable cause.
Use the fishbone diagram on the next slide to
solve a key problem
80
Fishbone Analysis Diagram for 6Ms
Name Your
Problem Here 6Ms
Name Your Name Your
Name Your
Cause Here Cause Here
Cause Here
81
Fishbone analysis
It is possible to customize your fishbone with categories that
best suit or describe your problem. This involves
substituting the traditional categories ie. 6Ms, 4Ps, 4Ss
with your own categories
The 6 Ms: Methods, Machines, Materials, Manpower,
Measurement, Management
The 4 Ps: Place, Procedure, People, Policies
The 4 Ss: Surroundings, Suppliers, Systems, Skills
An example is on the next slide
82
Fishbone analysis
83
Characteristics of an effective problem solver
Effective problem solvers:
have confidence in their ability to learn and their
ability to solve problems.
rely on their own judgment. Though they know
there is wisdom in counsel, they respect their own
decision-making abilities.
are not fearful of being wrong or of making
mistakes.
are not fast answerers.
are flexible and are often capable of seeing more
than one answer to a question or a problem.
84
Characteristics of an effective problem solver
Effective problem solvers
know the difference between fact and opinion and
understand the need for valid evidence.
do not need to have an absolute, final, irrevocable
solution to every problem.
have methods for approaching and solving
problems.
think about their thinking and review their
problem solving methods in order to sharpen
these tools for future problems they will
encounter
85
Characteristics of an effective problem solver
86
As part of problem solving
The supervisor is not expected to solve ALL problems
instead s/he should know how to
refer the problem to the proper people,
delegate appropriately, and
keep work moving.
The supervisor needs to take complete responsibility for
getting the facts needed.
Avoid making a major issue out of each problem.
Good planning can avert many crises
Put each issue into perspective so that alternatives
can be evaluated and an appropriate amount of time
can be devoted to finding the solution. 87
As part of problem solving
Avoid inappropriate responses to failure.
Acknowledge mistakes, but do not dwell and agonize
over them.
It is more important to learn whatever lesson the mistake
can teach, and then move on.
Remember to draw on easily available information.
Have some of the alternatives been tried before?
If so, what was the outcome?
Also consult with other colleagues in the organization or
with outside experts.
Beware of promising too much.
Dont make promises you cant keep to your subordinates
or your boss. 88
DECISION MAKING
89
Types of Decisions
There are THREE main types of decisions that Supervisors can be
faced with:
routine, adaptive, and innovative decisions.
Routine decisions are decisions made when problems are
relatively well defined and common and when established rules,
policies, and procedures can be used to solve them. e.g. shortage of
application forms or client assessment forms
Adaptive decisions are decisions made when problems and
alternative solutions are somewhat unusual and only partially
understood. e.g. changing working time , work pattern or methods
of assignment 90
Types of Decisions
Innovative decisions are decisions made when problems
are unusual and unclear and creative solutions are
necessary.
What would be your approach to the 3 types of
decisions?
How would you go about makingWho a would you involve?
Would you delegate the decision making?
Routine decision? Would you pass it on to your boss?
Would you consult a colleague or an outside
Adaptive decision? expert?
Would you ask your team members for their
Innovative decision?
input?
What process would you use?
Would you insist on what you believe is the
best decision or discard yours in favor of what
the team decides? 91
Factors affecting decision making
1- experience and knowledge .
2- creating thinking.
3- self concept.
4- stress
5- interpersonal conflict
6- time available, money, energy
7-Routine versus non routine decision.
8-Risk associated with the decision.
9- Critical nature of work.
10-Written guidelines.
11-Organizations attitude toward decision making.
12-Amount and kind of information available.
13-Degree of acceptance of decision and support.
92
14-Managers personal ability
Ingredients for Good Decision Making
Follow a systematic process
This process is usually similar to the problem solving
process involving between 5 and 8 steps
Involve the team
Delegate
Usually routine decisions can be delegated
Brainstorm
This gives you a variety of alternatives to a decision
Be creative
Be objective
Dont be emotionally attached to a particular decision
even when it may not be the best. 93
Characteristics of an effective decision making
process:
Effective decisions:
Are conducted in a systematic,
comprehensive way of thinking.
The consequences of the implemented
decision are determined.
They result in positive outcomes and fewer
negative consequences.
Are based on a "Goal-oriented" analysis of
the situation, its problems, and their
alternative solutions. 94
The decision making process
1) Define the problem
State the problem in broad terms
2) Gather information: from where!!!
Stakeholders:
Individuals, teams that are affected by the
problem or its solution.
Facts & data
Research
Results from experimentation and studies.
Interviews of "experts" and trusted sources.
Observed events, past or present, either
personally observed
95
3) Develop and Weigh Alternatives
Look at the situation in different ways; find a
new perspective that hasnt thought of before.
Once you have listed or mapped alternatives, be
open to their possibilities.
After listing possible alternatives, evaluate them
without prejudice, no matter how appealing or
distasteful
Consider all criteria. While a particular decision
may solve the problem, it may not work if
resources aren't available, if people won't
accept it, or if it causes new problems
96
4) Select the best alternative
Don't consider any alternative as "perfect solution."
If there were, there probably wouldn't be a problem
in the first place
Consider your intuition, or inner feelings in deciding
on a course of action
Return to a trusted outsider: Is there something you
missed?
Does he/she see a problem with your solution?
5) Implement the decision
until it is acted on, a decision is only a good
intention
6) Monitor progress
97
In making good decisions
Work with others why
Supervisors might encourage subordinates to come
up with alternatives to a situation requiring a
solution.
Team members can contribute more ideas for
alternatives than an individual working alone.
The team will have a broader perspective since the
experience of the team is broader than an individuals
experience.
People involved in the decision will better understand
an alternative selected and also be more likely to
support the decision. 98
In making good decisions
Involvement of subordinates in decision making provides
an opportunity for improving morale and employee self-
esteem.
Recognition of the contributions of people is a powerful
motivator.
Note however that
Group decision making is slower than individual decision
making.
There is an opportunity cost to the organization when
employees spend time in meetings rather than selling.
If one person dominates the decision-making process, the
value of group input is lost.
99
In making good decisions
The supervisor should be wise to involve
subordinates in some but not all decisions.
When a decision must be made quickly, like in an
emergency, the supervisor should probably make
it alone.
When the supervisor needs to build support for a
solution, such as in cutting costs or improving
productivity, the team process is useful.
When the consequences of a poor decision are
great, the benefits of the groups collective
wisdom are worth the time and expense of
100
gathering the input
In making good decisions
Since a primary benefit of team decision making is the
variety of opinions and expertise, a supervisor leading a
decision-making meeting should be sure that everyone is
participating.
The supervisor should concentrate on listening and
encouraging the input of others.
If someone is not participating, the supervisor may
have to ask for his or her opinion or thoughts on the
matter at hand.
Whenever supervisors ask for inputs from
subordinates, you should be sure you intend to use the
information
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In making good decisions
Brainstorm
It is another way to generate ideas in a team. It is the
process of coming up with as many ideas as possible.
It may be structured, that is, each person takes a turn
suggesting an idea or unstructured that is individuals call
out whatever comes to mind.
Team members state their ideas no matter how far-
reaching they may seem.
No one may criticize or even comment on an idea until
the end of the process.
All ideas are recorded.
Evaluation or follow-up on ideas takes place after all
ideas are suggested. 102
In making good decisions
Be creative
Creativity is the ability to bring about something imaginative or new.
In decision making, creativity means being able to generate
alternatives that are innovative or different from what has been used
in the past.
Thinking outside the box
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Gradients of agreement
This is a tool that supports team decision making.
When teams are trying to come to agreement on an issue there
is rarely 100% agreement or 100% disagreement.
Gradients of agreement can help to identify those shades
between the two extremes and send an indicator to the
Supervisor on whether there is strong or weak support for a
decision and therefore whether to go ahead and implement
even if the outcome of the team decision process is a YES.
Is it a strong YES or a weak YES
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Gradients of agreement
Consensus in team decision making is very important.
It means that each team member indicates that they buy-in to the decision
and actively support its implementation, even if they did not think it was the
very best decision.
The definition of consensus may be clear, but the part about yes, I buy-in
and no, I dont buy-in is a little more complicated.
One reason for the complication is that yes and no can have many
different meanings.
Yes might mean I love this decision or it might mean Ill support this
decision even though I preferred a different proposal.
No might mean Im not yet convinced but Im getting there or it might
mean I could never ever live with that decision.
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Gradients of agreement
An expanded vocabulary to account for gradients of yes and no helps
team members better describe their thinking and feelings about a
proposal and be honest.
Team members can register less-than-whole-hearted support without fearing
that their statement will be interpreted as a veto.
It also provides the team with a way to gauge support quickly and with less
ambivalence tension.
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Gradients of agreement
Enthusiastic
Support
Lukewarm Support
Meager Support
Strong Objection
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Gradients of agreement
Individual statements
Go around the room, one person at a time, and ask each
person to state which gradient he or she prefers, and why. At
this point you dont want group discussion; only listening for
understanding
Simultaneous declaration
Have each person write the gradient (word or number) of his
or her preference on a large piece of paper. Have everyone
hold up his/her paper. Record the data.
Secret ballot
Have each person write his/her preference on a slip of paper.
When everyone has finished, collect the ballots and tally the
results.
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Gradients of agreement
The tool provides team members with a wider choice of vocabulary to
indicate their level of support for a decision and also gives the supervisor
an indication of how strong the support is for a particular decision
In other words whether to implement it or not.
There may be times when the support is not so strong and this tool
may help you determine this.
Using this collaborative decision-making tool can help the team to arrive
at a decision that has a broad, enthusiastic level of support and will
enhance the commitment and likely success of the decision.
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How to improve decision making
1- interpret information in more than one way.
2- set criteria of success beforehand .
3- ask other people
4- scrutinize the decision making process
5- Change your way of deciding and reevaluate your time, and
learning from experience
7- involve the team
8- be rational and objective
Detach yourself emotionally from the decision
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How to improve decision making
9. Educate people so they know how to make appropriate decisions.
10.Seek support of top management for decision making at the lowest possible
level
decentralization
12. Managers should deal only with those decisions requiring their level of
expertise, support implementation of decisions, and credit the decision maker.
13.Delegate decision making such as routine decisions to subordinates to gain
their trust, loyalty and to raise their self-esteem.
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