Page 96 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Principles and Practices of Management

Notes 5.6 Summary

Decision-making can be regarded as an outcome of cognitive processes leading to the
selection of a course of action among several alternatives.

Making a decision implies that there are alternative choices to be considered and the best
alternative is to be chosen.
Most decisions are made by moving back and forth between the choice of criteria.

There is a five step decision-making process involved behind every decision.
There are many models available to help the managers take timely and effective decisions.
Group decisions are those taken by a group of persons constituted for this purpose.

To foster creativity in group Decision-making many techniques are used, such as: attribute
listing, brain storming, garden technique, nominal group technique and Delphi technique.

5.7 Keywords

Brainstorming: Group of people are given a problem and suggestions are sought.

Delphi Technique: Getting information from physically dispersed people.
Intuition: It is the apparent ability to acquire knowledge without inference or the use of reason.
Nominal Group Technique: Help generate ideas while letting group members think
independently.
Optimizing: Making the best possible
Rationality: Having complete knowledge about all the details of a given situation.

5.8 Self Assessment

1. Choose the appropriate answer:
(a) In decision-making, one adheres to the following steps: (A) Secure pertinent
information. (B) Define the problem. (C) Analyze the facts.
Of the four choices below, the correct order of these steps is?
(i) A, B, C (ii) B, A, C (iii) C, B, A (iv) A, C, B

(b) In which of the following situations should an employee use his own judgment?
(i) When immediate action is necessary and the rules do not cover the situation.
(ii) Whenever the rules appear to be unfair in their application.

(iii) Whenever a situation is not covered by established rules.
(iv) Whenever a superior is present.
2. State whether the following statements are true or false:
(a) A decision is the selection of a course of action.
(b) Decision-making is the process by which the decision-maker tries to jump over the
obstacles placed between his current position and the past position.
(c) The first step in decision-making process is developing the problem.

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