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BA 351 Managing Organizations. Decision Making.

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Write Smart Co. has a very specific decision making process that it follows for handling client problems that has been quite successful for the firm. The first stage is _______, in which the team members at Write Smart help the client figure out exactly what the problem is that it faces.

  • Identifying and diagnosing the problem
  • Evaluating the results
  • Generating alternative solutions
  • Implementing the decision
  • Making decisions under conditions of risk and uncertainty is one of the most important activities that managers engage in.
  • Generally, there is a lack of information and a limited amount of time available to make the decision.
  • Procrastinating and not making a decision sometimes has greater risk than making it.
rational or1
Rational or


With your partner solve the two problems on pages 1& 2

Youwill have 15 minutes to complete both exercises…


advantages and disadvantages of group decision making
Advantages and Disadvantages of Group Decision Making


  • Increased acceptance
  • Greater pool of knowledge
  • Different perspectives
  • Greater comprehension
  • Training ground


  • Social pressure
  • Minority domination
  • Logrolling
  • Goal displacement
  • “Groupthink”

The Abilene Paradox


Dr. Jerry B. Harvey

decision making
Decision Making

The process of identifying problems and opportunities and resolving them.

Management decisions can be made by managers, teams, or individual employees, depending on:

The scope of the decision, and

The design and structure of the organization.

characteristics of management decision making
Characteristics of Management Decision Making


Decision Scope





stages of decision making
Stages of Decision Making

Identifying and diagnosing the problem

Generating alternative solutions

Selecting the best alternative

Evaluating alternatives

Implementing the decision

Evaluating the decision

typical problems that require decisions
Typical problems that require decisions
  • A high level of employee turnover.
  • A reduction in firm profits.
  • Unacceptable levels of “shrinkage” in a store.
  • Lower than planned quality of finished goods.
  • An unexpected increase in workplace injuries.
  • The invention of a new technology that can increase the productivity of the workforce.
evaluating alternatives
Evaluating Alternatives
  • Decision criteria should be related to the performance goals of the organization and its subunits.
  • Decision criteria can include:
    • Costs
    • Profits
    • Timeliness
    • Whether the decision will work
    • Fairness
evaluating alternatives cont
Evaluating Alternatives(cont)
  • A practical way to apply decision criteria is to consider:
    • Decisionquality – aspect of decision making based on such facts as costs, revenues, and product design specifications.
    • Decision acceptance – aspect of decision making based on people’s feelings.
approaches to selecting the best alternative
Approaches to selecting the best alternative
  • Optimizing – selecting the best alternative from among multiple criteria.
  • Satisfying – selecting the first alternative solution that meets a minimum criterion.
managing group decision making
Managing Group Decision Making

Leadership Style

Devil’s Advocate Role

Stimulating Creativity

leader decision making styles
Leader Decision Making Styles
  • Decide and persuade
  • Discover facts and decide
  • Consult and decide
  • Consult with group

and decide

  • Group decision
decision making techniques to stimulate group creativity
Decision Making Techniques to Stimulate Group Creativity



Delphi Technique

Nominal Group Technique (NGT)

skills for decision making process
Skills for Decision Making Process
  • Time management skills
    • To make good decisions, managers need time to understand the problem and develop creative solutions.
  • Delegation skills
    • Managers who know how to delegate are able to accomplish more than those who feel the need to be involved in every decision, no matter how trivial.
why leaders don t delegate
Why Leaders Don’t Delegate

Insufficient time

Perception that the job is too important

Leader’s belief that he/she can do it better

Leader enjoys doing the job

Lack of confidence in subordinates

Fear subordinates might do job better

Concern that the Boss will think the leader isn’t working

effective time management practices
Effective Time Management Practices
  • Plan a list of things that need to be done today.
  • Plan weekly, monthly, and annual schedules of activities.
  • Schedule difficult and challenging activities when you are at your highest level of energy and alertness.
  • Set deadlines.
effective time management practices cont
Effective Time Management Practices(cont)
  • Answer phone messages

and e-mail in batches

during a lull in your work schedule.

  • Have a place to work uninterrupted.
  • Do something productive during non-productive activities.
effective delegation cont
Effective Delegation(cont)

Keep communication channels open.

Allow employees to do the task the way they feel comfortable doing it.

Trust employees’ capabilities.

Check on the progress of the assignment.

Hold the employee responsible for the work.

Recognize what the employee has done, and show appropriate appreciation.

rules for successful delegation
Rules for Successful Delegation

Describe the task

Outline expected results

Discuss resources

Confirm understanding

Solicit ideas

Establish methods of working and reporting

guidelines for giving direction
Guidelines for Giving Direction

Use familiar words

Define new terms

Use logical sequencing

Provide a visual model or demonstration

Check for understanding

Allow the listener to clarify instructions

delegation is