Page 94 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes
Mr. Prasad, who Joined the Institute in 1986. Mr. Sharma rushed to the chambers of the
Director of the Indian Institute of Technology on 20th July, 1988 and told him he was
quitting the job in the Institute and he was going to join Government Degree College,
Rajahmundry. He further said that he was going to get the same salary in a small town.
The Director was shocked after listening to Mr. Sharma.
Questions

1. Do you justify the decision made by Mr. Sharma?
Ans. The decision of Mr Sharma seems to be driven by just money factor. That he would
be getting same salary in a smaller town is absolutely right but his profession is not
only for earning money. He would have joined IIT for the value it has in the industry
as well as the satisfaction that he would get from teaching and nurturing some of the
best minds in the country. The case does not throw light on this factor. If he draws
the same satisfaction from his teaching at the college at Rajahmundry, his decision
is right otherwise, he must rethink before making the final say.
2. Do you suggest any measures to stop Mr. Sharma from quitting the job?
Ans. Before taking any decision to stop Mr Sharma from resigning, analysis of his
performance should be done. If he is too precious for the organisation to part ways
with, the following methods can be adopted to stop him from resigning:

(a) Counselling: about his gains (other than the money) from the current job.
(b) Offering him a few other concessions

5.4 Group Decision-making

Individual decisions are taken by a single individual. These are concerned mainly with routine
problems for which broad policies are available. In such, decisions, analysis of various variables
is relatively simple. However, in some cases, important decisions may be made by an individual.
Group decisions are those taken by a group of persons constituted for this purpose. Decisions
taken by the Board of Directors or a committee are examples of group decisions. These decisions
are generally important for the organisation. Group Decision-making generally results in more
realistic and well-balanced decisions and encourages participative Decision-making. But if
involves delay and makes it difficult to fix responsibility for such decisions.
Table 5.1: Advantages and Disadvantages of Group Decision-making

Advantages Disadvantages
1. More information and knowledge. 1. Waste of time due to delay in decisions.
2. A greater number of alternatives can be 2. Groups create pressures on members to
Generated due to wider experience, variety conformity and to compromise on the
of opinions and more thorough probing of least common alternative.
facts.
3. Participation in Decision-making increases 3. Domination of the group by one or two
acceptance and commitment to decisions. powerful and influential members.
4. People understand the decision better. 4. May be costlier than individual
decisions.
5. Interaction between individuals helps to 5. Tendency to pass the buck or to avoid
improve cooperation and coordination. responsibility.
6. One man control reduced as authority is 6. Disagreement among group members
shared. may lead to conflict and ill feelings
between them.
7. Fosters creativity and initiative.

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