Management Theory and Practice
MANAGEMENT THEORY AND PRACTICE Q1. Explain Decision Making Process and various types of Decision with examples?
Ans. Decision making is six step process. 1) IDENTIFYING AND DIAGNOSING THE PROBLEM. The first stage of decision making is identifying and diagnosing a problem or opportunity. Once a problem has been recognized, the decision maker begins to look for the causes of the problem. This requires gathering information, exploring possible causes, eliminating as many causes as possible, and then focusing on most probable causes. For eg, a manager who observes a high level of employee turn over first gathers information to diagnose the problem and then attempts to understand why the turnover is occurring. If the real cause of turn over is work and family conflicts due to inflexible work schedules and the manager assumes that it is caused by inadequate compensation and raised employee pay as a solution, the manager may not have solve the problem. 2) GENERATING ALTERNATING SOLUTION. The second step is to generate possible solution to the problem based on the previous causes. Some problems can be solved using programmed solution, when there are ready made answers. Novel situation requires non programmed decisions because there are no policies or procedures available to provide directions. Many companies use groups to generate solution for non programmed decisions because they provide a greater diversely of opinions and more innovative solutions than do people working individually. 3) EVALUATING ALTERNATIVES The third stage requires the decision maker to examine the solutions using a set of decision criteria. The decision criteria should be related to the performance goals of the organization and its subunits and can include cost, profits, timeliness, whether the decision will work, and fairness. For eg. A technical engineering problem can be solved by gathering data and mathematical techniques. Decision acceptance is
Ans. Decision making is six step process. 1) IDENTIFYING AND DIAGNOSING THE PROBLEM. The first stage of decision making is identifying and diagnosing a problem or opportunity. Once a problem has been recognized, the decision maker begins to look for the causes of the problem. This requires gathering information, exploring possible causes, eliminating as many causes as possible, and then focusing on most probable causes. For eg, a manager who observes a high level of employee turn over first gathers information to diagnose the problem and then attempts to understand why the turnover is occurring. If the real cause of turn over is work and family conflicts due to inflexible work schedules and the manager assumes that it is caused by inadequate compensation and raised employee pay as a solution, the manager may not have solve the problem. 2) GENERATING ALTERNATING SOLUTION. The second step is to generate possible solution to the problem based on the previous causes. Some problems can be solved using programmed solution, when there are ready made answers. Novel situation requires non programmed decisions because there are no policies or procedures available to provide directions. Many companies use groups to generate solution for non programmed decisions because they provide a greater diversely of opinions and more innovative solutions than do people working individually. 3) EVALUATING ALTERNATIVES The third stage requires the decision maker to examine the solutions using a set of decision criteria. The decision criteria should be related to the performance goals of the organization and its subunits and can include cost, profits, timeliness, whether the decision will work, and fairness. For eg. A technical engineering problem can be solved by gathering data and mathematical techniques. Decision acceptance is