Decision Making and Management of Change

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Decision Making & Managementof Change


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Introduction

Decision making is fundamental aspect ofmanagement because it requires choosing amongalternatives course of action to produce desiredresults..Decision is required to be taken in all functions ofmanagement.Managers scout for problem, make decisions forsolving them and monitor the consequences to seewhether additional decisions are required.


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Characteristic

Goal Oriented.

Alternative- Search and choice.Analytical-Intellectual.Dynamic

Pervasive-Covers every part of anenterprise.Commitment of time, effort and money.>


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Classification

Basic Decision- One time decision

Routine Decision-Repetitive decision.Programmed Decision- Fairly structured andrecurs with some frequency.Non-programmed decision-Decision inresponse to unique situation.>


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PERSPECTIVEMANAGEMENT 5

Types

Personal vs. Organizational Decisions a) Personal decisions pertain to the manager

as an individual rather than to the manageras an individual rather than to organization.

b) Organizational Decisions are those that managers make in their official capacity.


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Cont..

Strategic vs. Operational decision.

a. Strategic decisions tend to influence thelong - range plans.b. It involve the entire organization and not a

single department.

a. Operational decisions are concern with theday-to-day operations of the enterprise.

b. They deal with short-term plans.


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Cont.

Problem-Solving vs. Opportunity Decision.

i. Problem solving decisions are made tosolve existing or anticipated problem.

ii. Opportunity decision is a positive actionthat takes advantage of potential growth orhigher profits


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Cont

Structured vs. Unstructured Decision.

a) Structured decisions are programmed andincludes policies, procedures, methods andrules.

b) Unstructured decisions are non-programmed decisions and are relativelyfree from limitations imposed by prior

decision.


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Cont

Initiative vs. Referred decision.a) Ambitious and aggressive managers

make Initiative decisions.

b) Managers who are timid and self-sittersplay safe and prefer to remain inactiveuntil a decision is Referred to them.


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Decision Making ProcessAwareness of problem.Diagnose and state the problem.-What is theproblem? Which problem to solve ? What is the realcause of problem?Develop the alternative.Evaluate the alternative.

Select the best alternative-The risk, Economy ofeffort, Timing, Limitation of resources.Implement and verify the decision.>


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Decision MakingProcess

Identifying theProblem

DevelopingAlternative

Solutions

Analyzing theProblem

Follow upor Action taken

Converting Decisioninto Action

Selecting theBest Solution


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Problem in Group Decision Making

Conformity-Group forms certain norms ofbehaviour and react accordingly.Group Think This is extreme form ofconsensus. Members tend to take mediocredecision.

Superiority.Risky Shift.-Group makes riskier decisionthan individual.>>


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Decision-Making To decide means to come to some definite

conclusion for follow-up action.

Decisions are made to achieve goals throughsuitable follow-up actions.

Decision-Making is a Process by whichselection of a course of action is take.


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Management of change-DefinationAdoption of new ideas or behaviour by an organisation.The purpose of undertaking such modifications is to increase

organisational effectiveness.It is largely structured in nature as it brings about modificationsin organisational structure, methods and processes.If organisation has to successful, it has to change in responseto significant developments such as customer needstechnological break through, economic shocks and governmentregulations.It is essential to undertake appropriate change at right time toachieve success and stay ahead of others in race.>


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Type of Change

Evolutionary change.

Revolutionary changes.Planned changes.>


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Learning OrganisationLearning organisations go beyond merely adapting to changes,instead, they strive to anticipate and learn from change.

Characteristic-People tend to put aside their old ways of doing, thinking etc.(Mental Model)Learn to be open with others. (Personal Mastery)Understand how their company actually works (SystemThinking)For a plan every one can agree on (Shared Vision), andThen work to gather to achieve that vision. (Team Learning)>


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Factors effecting changeInternal-Increased size.Performance Gap.Employees need and values.Change in Chief Executive.

External forces-TechnologyMarket SituationSocial and political change>


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Process of planned change

Identify the need for change based on Internal andexternal factors.Diagnose the problem.Plan the change-When? How? Who? What?(Structural Change, Redesigning job, Changingtechnology, Cultural Change )Implement the change-Resistance, power andcontrol.Follow-up and feedback>


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Resistance to change

Economic reasons.

Personal reasons.Social reasons.Organisational Issues.>


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Approaches designed to reduce

resistance to change

Education and communication

Participation and involvementFacilitation and supportNegotiation and agreement

Manipulation and cooptionCoercionGroup Dynamics.>>

Documents

Decision Making and Management of Change