Routine DecisionPeople usually make hundreds of decisions

everyday. Rather than thinking a lot for each, people instead rely on routines.

These are decisions which need an introduction and identification then it becomes your regular activity.

As the nature of decision is, taken regularly, the answers are obvious to you & require no or little consideration of an alternative.

These decisions are usually sufficient, but they do occasionally fail. The failures provide an opportunity to improve decision making.

ExampleWhich way to turn your car as you leave work to head

home,

Where to put the spoons when you take them out of the dishwasher,

Which button to push to switch on your personal computer,

How many buns to buy to go with a package of eight sausages,

Which hand you write with.

Decisions taken in an Org: There are three types of decisions taken in

an organization

1. Strategic Decision,

2. Tactical Decision,

3. Operative Decision.

Strategic Decision One of the essential parts of creating and running a

business is creating a mission or vision for the business and a set of goals the company aims to achieve.

Strategic decision making, or strategic planning, describes the process of creating a company's mission and objectives and deciding upon the courses of action a company should pursue to achieve those goals.

Strategic decisions : are taken by top management

have long term horizon

are future oriented

are non-repetitive

are centralized

affect long term prosperity of the firm

are concerned with the allocation of total resources among product-market opportunities.

Four steps for making Strategic DecisionThe recent Moss Adams study recommends the

following four steps to strategic decision making:

1) Develop a Plan and Goals

2) Develop a Performance Monitoring Process

3) Formalize a Compensation System

4) Devote Time and Energy to Marketing

http://www.professionaladvisorsalliance.com/paa/pages/expanding/decisonmaking.html

Individual Decisions The main factor behind the

decision taken by individual is

Perception. Individual analysis

and rationale are also affected

by perception.

PerceptionA process by which individuals organize and

interpret their sensory impressions in order to give meaning to their environment.

“We do not see things as they are,

but we see things as we are.”

Individual Decision Making We generally make decisions under impression of

facts and figures, comparison, perception or belief and personal intuition. Perception plays an important role while making intuition.

As an individual can not go through diverse data to analyze and interpret each and every thing, so the decision made by him can be good on the ground where he is good and vice versa.

While Under some individual

decision situation, people follow

the rational decision-making

Model.(However, this does not

happen very often)

So, what can managers do to improve their decision making? Analyze the situation.

Be aware of biases.

Combine rational analysis with intuition.

Don’t assume that your specific decision style is

appropriate for every job.

Try to enhance your creativity

Group or Collaborative Decisions Group Decisions are called when a problem is

encountered or to determine the future direction of the organization.

Using tools like the SWOT (Strengths, Weaknesses, Opportunities, Threats)

model, the current direction of

the organization is assessed.

Types of Group Decision Making

Consensus Decision Making: tries to

avoid "winners" and "losers". Consensus requires that a majority approve a given course of action, but that the minority agree to go along with the course of action. In other words, if the minority opposes the course of action, consensus requires that the course of action be modified to remove objectionable features.

Voting Based Methods :Majority : requires support from more than 50% of

the members of the group. Thus, the bar for action is lower than with unanimity and a group of "losers" is implicit to this rule

Plurality : where the largest block in a group

decides, even if it falls short of a majority.

Dotmocracy : is a facilitation method that relies on the use of special forms called Dotmocracy Sheets to allow large groups to collectively brainstorm and recognize agreement on an unlimited number of ideas they have authored.

Blank Dotmocracy Sheet-----Filled Dotmocracy Sheet

Query Session

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