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The Islamia University The Islamia University BahawalpurBahawalpurORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIOR

Topic: individual and group decision makingTopic: individual and group decision makingPresented to : Miss Nida MehmoodPresented to : Miss Nida Mehmood

Presented by:Presented by: Majid Aslam (704)Majid Aslam (704)Iram Shakeel (702)Iram Shakeel (702)Usman Bashir (712)Usman Bashir (712)

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Decision MakingDecision Making• DecisionDecision

Making a choice from two or more alternatives.Making a choice from two or more alternatives. Decision making is a process of selecting the best Decision making is a process of selecting the best

among the different alternatives. It is the act of among the different alternatives. It is the act of making a choice. There are so many alternatives making a choice. There are so many alternatives found in the organization and departments. Decision found in the organization and departments. Decision making is defined as the selection of choice of one making is defined as the selection of choice of one best alternativebest alternative

Individual Individual Steps of Decision Making Steps of Decision Making

• 1. Define the problem. 1. Define the problem. • 2. Identify the decision criteria.2. Identify the decision criteria.• 3. Allocate weights to the criteria.3. Allocate weights to the criteria.• 4. Develop the alternatives.4. Develop the alternatives.• 5. Evaluate the alternatives.5. Evaluate the alternatives.• 6. Select the best alternative.6. Select the best alternative.• 7.Implementation of the best alternative• 8.Evaluation of decision

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Step 1: Identifying the ProblemStep 1: Identifying the Problem

• ProblemProblem A discrepancy between an existing and desired state A discrepancy between an existing and desired state

of affairs.of affairs.

• Characteristics of ProblemsCharacteristics of Problems A problem becomes a problem when a manager A problem becomes a problem when a manager

becomes aware of it.becomes aware of it. There is pressure to solve the problem.There is pressure to solve the problem. The manager must have the authority, information, or The manager must have the authority, information, or

resources needed to solve the problem.resources needed to solve the problem.

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Step 2: Identifying Decision CriteriaStep 2: Identifying Decision Criteria• Once a decision maker has defined the problem, he or she

needs to identify the decision criteria that will be important in solving the problem. In this step, the decision maker is determining what's relevant in making the decision. This step brings the decision maker’s interests, values, and personal preferences into the process.

Step 3: Allocating Weights to the CriteriaStep 3: Allocating Weights to the Criteria The decision-maker weights the previously identified criteria in order to give them correct priority in the decision

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Step 4: Developing AlternativesStep 4: Developing Alternatives• Identifying viable alternativesIdentifying viable alternatives

Alternatives are listed (without evaluation) that can Alternatives are listed (without evaluation) that can resolve the problem.resolve the problem.

Step 5: Analyzing AlternativesStep 5: Analyzing Alternatives• Appraising each alternative’s strengths and Appraising each alternative’s strengths and

weaknessesweaknesses An alternative’s appraisal is based on its ability to An alternative’s appraisal is based on its ability to

resolve the issues identified in steps 2 and 3.resolve the issues identified in steps 2 and 3.

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Step 6: Selecting an AlternativeStep 6: Selecting an Alternative• Choosing the best alternativeChoosing the best alternative• Decides which alternative is-Decides which alternative is- the most feasible and effectivethe most feasible and effective less cost to the organizationless cost to the organization chances of successchances of success

Step 7: Implementing the Step 7: Implementing the AlternativeAlternative• Putting the chosen alternative into action.Putting the chosen alternative into action.

Conveying the decision to and gaining commitment Conveying the decision to and gaining commitment from those who will carry out the decision.from those who will carry out the decision.

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Step 8: Evaluating the Decision’s Step 8: Evaluating the Decision’s EffectivenessEffectiveness• The soundness of the decision is judged by its The soundness of the decision is judged by its

outcomes.outcomes. How effectively was the problem resolved by How effectively was the problem resolved by

outcomes resulting from the chosen alternatives?outcomes resulting from the chosen alternatives? If the problem was not resolved, what went wrong?If the problem was not resolved, what went wrong?

GROUP DECISION MAKINGGROUP DECISION MAKING

Group Group Steps of Decision Making Steps of Decision Making

• 1. Define the problem. 1. Define the problem. • 2. Identify the decision criteria.2. Identify the decision criteria.• 3. Allocate weights to the criteria.3. Allocate weights to the criteria.• 4. Develop the alternatives.4. Develop the alternatives.• 5. Evaluate the alternatives.5. Evaluate the alternatives.• 6. Select the best alternative.6. Select the best alternative.• 7.Implementation• 8.Evaluation of decision

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 6–11

WHY GROUP DECISION WHY GROUP DECISION MAKING????MAKING????

TECHNIQUES OF GROUP DECISION TECHNIQUES OF GROUP DECISION MAKINGMAKING•Brain stormingBrain storming

•Nominal group techniqueNominal group technique•Delphi techniqueDelphi technique•Electronic meetingsElectronic meetings•Fish bowlingFish bowling•Interacting groupsInteracting groups

BRAIN STORMINGBRAIN STORMING

•BrainstormingBrainstorming is a group  is a group technique by which efforts are made technique by which efforts are made to find a conclusion for a specific to find a conclusion for a specific problem by gathering a list of ideas problem by gathering a list of ideas spontaneously contributed by its spontaneously contributed by its member.member.

•Generate as many ideas as possible, Generate as many ideas as possible, suspending evaluation until all the suspending evaluation until all the ideas have been suggested.ideas have been suggested.

Nominal group techniqueNominal group technique•Individuals silently list their ideas.Individuals silently list their ideas.

•Ideas are written on a chart one at a Ideas are written on a chart one at a time until all ideas are listed.time until all ideas are listed.

•. No criticism allowed.. No criticism allowed.

•A written vote is taken.A written vote is taken.

Delphi techniqueDelphi technique•Used for forecasting future events.Used for forecasting future events.•Fifteen to twenty experts are Fifteen to twenty experts are

involved.involved.•Structured questionnaire is sent to Structured questionnaire is sent to

these experts.these experts.•There is no interaction between them.There is no interaction between them.•A summary is prepared by taking the A summary is prepared by taking the opinions of the experts.opinions of the experts.

Electronic meetingsElectronic meetings•The members of the group interact The members of the group interact

with the help of computers through with the help of computers through connected computer terminals.connected computer terminals.

•Projector screen is used to show the Projector screen is used to show the individual comments and votes on an individual comments and votes on an issue.issue.

•This method reduces group think and This method reduces group think and the time wasted in socializing the the time wasted in socializing the meeting.meeting.

FISH BOWLINGFISH BOWLING•All the members are seated in a circle All the members are seated in a circle

formform•One person sits in the centre chair One person sits in the centre chair

and gives his suggestion to the and gives his suggestion to the problem.problem.

•Members can ask questions to that Members can ask questions to that person.person.

•After all views are expressed, After all views are expressed,

INTERACTING GROUPSINTERACTING GROUPS

•Most of the decision making in a Most of the decision making in a group happens in a meeting.group happens in a meeting.

•The most important advantage is that The most important advantage is that the members can interact face to the members can interact face to face.face.

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