Page 85 - DMGT402_MANAGEMENT_PRACTICES_AND_ORGANIZATIONAL_BEHAVIOUR

Management Practices and Organisational Behaviour

Notes MBO is one such technique, which has become very popular due to its focus on
participatively set, measurable goals in key areas affecting organisational performance.
The process of MBO involves three steps: (i) setting goals jointly, taking the commitment
and support from subordinates, (ii) developing a concrete action plan, and (iii) appraising
performance with a view to improve results constantly.

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.

3.15 Keywords

Intuition: It is the apparent ability to acquire knowledge without inference or the use of reason.
Management by Objectives: Systematic and organised approach that allows management to
focus on achievable goals and to attain the best possible results from available resources.
Optimizing: Making the best possible
Planning: An act of formulating a program for a definite course of action

Rationality: Having complete knowledge about all the details of a given situation.
Strategy: An elaborate and systematic plan of action.

3.16 Self Assessment

Fill in the blanks:
1. An initial idea about corporate objectives may have to be .................. if there is no feasible
implementation plan that will meet with a sufficient level of acceptance.
2. .................. systems should be used to share information and create common goals.
3. Formulation and .................. of strategy must occur side-by-side rather than sequentially.
4. .................. involves adapting the organisation to its business environment.

5. MBO is .................. with management philosophies.
State whether the following statements are true or false:
6. A decision is the selection of a course of action.

7. 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.
8. The first step in decision-making process is developing the problem.

9. If tried, it is very easy to state a problem accurately.
10. According to rationality model, managers select the first alternative that is satisfactory.

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