ORGANIZATIONAL DECISION MAKING

MODULE 1
Definition, Nature of decision making: decision
characteristics, types of decisions.

Decision making process, Problems in decision making

process: misunderstanding a situation, rushing the decision
Making process.

Improving decision making process: Improving the roles of

individual, structured group decision making process.

Techniques of decision making.

Models of Individual decision making: Classical, Behavioral

decision making models, Individual decision making process.
 Definition and Nature
 Decision making is the process of identifying a set of feasible alternatives and from these,
choosing a course of action.

 Decision judgment that directly affects a course of action

 Choice making - refers to the narrow set of activities associated with choosing one option

02
from a set of already identified alternatives.
03 04
 Decision making is an intermate- sized set of activities. it begins with problem
identification, proceeds to identifying and evaluating of a set of alternatives, and ends with
choice making.

 Problem solving - refers to the broad set of activities needed to find and implement a
course of action correct an unsatisfactory situation. it includes not only decison making,
but also implementing, monitoring, and maintaining the decision.
 Decision making, Choice making, Problem solvin

Decision making

Choice
making

Step 1: Step 2: Step 3: Step 4: Step 5: Step 6:

Recognizing Generating Evaluating Choosing Implementin Monitoring and
the need for a alternative the an g the chosen maintaining the
decision solutions alternatives alternative alternative solution

Problem solving
Different occasions give rise to the need for decisions

Current Managers To maintain

state of A may want the status Proactiv
affairs may problem to take quo - to
fall short or crisis e in
advantage preseve a
of a goal or may arise nature
s of an high sales
an ideal. opportunit volume,etc.
y.
 Decision Characteristics
Uncertainity: Structured problem:
• Unaware of all alternatives • Problem whose nature and context are well
• Unaware of outcomes even for known alternatives defined
• Decision requires creativity and willingness to take • Entail role clarity
risk in the face of uncertainty Unstructed Problem:
Risk : Conditions of • Problem characterized by a lack of problem
• Aware of all alternatives and context definition.
• Unaware of outcomes for each alternative certainty, Risk Problem • Entail role ambiguity
• Decision requires educated gusses for alternative and Uncertainty
outcomes.
structure
Certainty:
• Awarenwss of all alternatives
• Awareness of all outcomes related to each alternative
• Decision can identify the best solution
Conflict
Politics • Activities that increase one’s power base over other
individuals and groups.
• The conflict can be psychological.
• Politics in decision making represents the use of
• Intra- individual conflict,
power to achieve one’s self interests on the presence
interpersonal conflict frequently
of other interest groups
accompanies decision making.
• It often involves attempts to overcome an opponent
by builiding coalitions, bargaining,etc in an effort to
outmaneuver the opposition.
 Types of Decisions
Strategic decision
Broadest level
Identifies the ends and means
associated with positioning an
organization in its external task
environment Managerial (tactical) decision
Intermediate level
04 specifies how an organization
03 intends to integrate its institutional
Means decision level with s technical core, and
how it will coordinate the diverse
concerns procedures or actions work systems within the technical
undertaken to achieve core
particular goals; that is, it
specifies how a goal is to be Ends decisions
reached.
02
01 Focuses on the
articulation of a
desired goal (outcome)
 Types of decisions

Operating decision Programmed decision

Narrower level
deals with the day - to- routines employed to deal with
day operation of an frequentlt occuring situations
organization

Non programmed decision Functional decision

the process of addressing relates to one of the organization’s

unique or novel situations functions (production, marketing,
confronting the organization accounting, finance, human
resources)
 Individual decision
Decisions that are made by
Job content decision individual by using managerial
Relates to the inherent skill and judgement on the one
nature of the work hand and set procedures,
performed by an individual techniquesa and rules on the other.
or work group

Group decision
Job context decision Individuals who all are working
Relates to issues that surround at the same or different level;s
the job, but are not a part of the come together, and deliberate
job per se over the problem
 DECISION MAKING PROCESS

Recognizing the need for a

decision: problem sensitivity, Evaluating
definition, and alternatives
understanding.

1 2 3 4

Generating
Choosing an
alternative solutions
alternative
STEP 1: Recognizing the need for a decision: problem sensitivity, definition,
and understanding.

• Detecting symptoms
• Identify and define the problem in detiail
• Decomposition - break a problem into a series of subproblems, analyze them,
recombine them into a better understood whole.
1. Differentiate between events and the language used to describe an event.
2. Identify whether the available onformation is fact or opinion, and they must
evaluate the degree of certainty that surrounds the problem
3. Determine the underlying cause rather than placing blame or giving credit.
4. Look for several causes
5. Encouraged to be specific
STEP 2: Generating alternative solutions
• After a problem has been identified, diagnosed, and understood, a manager is ready to
move into the next stage.
• First, specify the goals they hope to achieve. once they determine the goals, they can
search for alternative means of reaching them
• Alternative solutions fall into two categories :
1. Existing solutions: a solution to decision occasions (a problem) that has been previously
developed.
2. Custom solution: a solution to decision occasions (problems) that is specifically
developed for th situation at hand.
• Existing solutions are frequently adapted, with or without modification, to new
situations.
• Custom solutions are called for by unstructured probems (role of creativity)
STEP 3: Evaluating alternatives
• Estimate how well each alternative meets the organization’s goals and objectives
• Focus on the strengths and weaknesses, pros and cons, and latent and manifest consequences of
each alternative.
• Evaluating the feasibility of each alternative (cost, acceptancy, risk,ethical barriers,influence)
• Elimination of some alternatives occur in this stage.
STEP 4: Choosing an alternative
• Only one viable alternative remains
• Final stage involves making judgements and Choices
• Using different tools for selecting the most favored alternative.
• Three decision criteria are optimizing, maximizing, and satisficing.
• To optimize, need to find the best possible decision
• To maximize, must determine whether an alternative meets the maximum number of objectives.
• To satisfice, try only to find the first satisfactory solution
Problems in decision making process
• Half the decisions in organizations fail as a result of managers who employ poor
tactics.
MORE THEN
• TEMPLATE
The bad decisions frequently originate in the way the decision was made.

• Decision makers often fall into several traps that contribute to poor decisions:
displaying a bias toward alternatives that maintain the status quo, making future
choice that serve to justify past choices, and seeking evidence to confirm our
instincts or preference and avoiding evidence that contradicts it.
MORE THEN MORE THEN
• Two of the most common pitfalls are the tendency to misunderstand a situation
TEMPLATE TEMPLATE
and to rush the decision process.

• Third problem made by managers is using the wrong decision making approach.
 Problems in decision making process
• To understand a decision situation a manager must coordinate and organize a great deal of relevant
information.

Misunderstanding• If this information is incompelete or organized poorly, the manager may easly misconstrue the situation.
a situation
• It can be relatively straight forward to organize concrete information about costs, schedules, and units
produced.

• The sheer quantitiy of such information can make it next to impossible to make sense of it all.

• Giving meaning to abstract information is even more difficult, because they are more difficult to identify,
frequently goes unnoticed and problems that appear through abstract signals, often go unrecognized.

• MORE
Perceptions that influence how we understand decision THEN vary fromMORE
situations THEN
individual to individual.
TEMPLATE TEMPLATE
• Me individuals have limited information processing capabilities, which means they only partially understand
situations.

• As a consequence, our perceptions of and reactions to situations aren’t always accurate.

• Managers may also misinterpret a decision situation if they mistake the symptoms of a problem for the
problem itself.
 Problems in decision making process
• To save money, or to avoid the uncertainty associated with problems, both individuals
and group decision makers often rush the process.
Rushing the
decision • Limiting the search for alternatives, and use power to implement their plans.
making
process
• Tend to overlook unusual alternatives in favor of readily available and previously used
alternatives

• Overgeneralize and assume that solutions from vaguely similar situations are
appropriate for new situations.

• Develop a smiliar familiarity with certain

MORE sources
THEN of information and alternativeness.
this limit the range of choices. TEMPLATE

• Due to single step process - catalysts

• Partly formed and fall short of their full potential

• Simultaneously generating and evaluating ideas, those are not tend to mature into fully
formed possibilities for solutions.
 IMPROVING DECISION MAKING
IMPROVING THE ROLES OF INDIVIDUALS

• Use of heterogeneous groups - to expand the information base and encourage the thorough definition of problems, search for
alternatives and evaluation of alternatives.

• Use of devil’s advocate- look at the alternatives and tentative decisions and challenge them. it helps a group focus on the possibility
undesirable consequences of some alternatives or the possibly desirable consequences of others.

• In many organizations, people are rewarded only for doing exactly what they are told to do- performing their jobs as they have been
defined- and are discouraged from experimenting.

• As a consequence, many existing problems and poential opportunities go unnoticed.

• Develop an internal environment that makes it safe for members to pursue new ideas.

• Giving employees the freedom to try new things, plus the permon to fail or to be wrong occasionally, stimulates the search for
solutions and for new ways of doing things. for eg : 3M

• Training organization members in systematic decision making, providing them with the tools for collecting the necessary
information, and allowing adequate time for decision making go a long way toward improving decisions.

• Supporting these actions with reward systems that emphasize careful, effective decision making reinforces their importance.
STRUCTURED GROUP DECISION MAKING PROCESS

• Struggle over individual and group decision making process.

• Group can significantly enhance the quality of decisions - if we use groups effectively.

• Several structured group processes, capture the assests of group decision making, while
managing the liabilities associated with that process.
TECHNIQUES OF DECISION MAKING
• Sucess , growth and development of the organizationa to a great extent depends on the quality of
decisions taken by managers

• To help them in the process of decision making, meaningful efforts have been made tevelop
techniques for it.

• The use of these techniques improves the efficiency of decision making as well as the quality of
the decisions made by the manager.

• These techniques of decision making may be grouped into two groups, that is, traditional
techniques and modern techniques.

• Traditional techniques may further be classified into two groups: techniques for programmed
decisions and modern techniques for non- programmed decisions
 TRADITIONAL TECHNIQUES OF DECISION MAKING

Programmed NON - Programmed

Decisions Decisions
• Linear programming

• Habits • Queuing theory

• Games Theory
• Standard Procedures and Rules
• Probability Theory
• Organizational Structure • Simulation

• Network technique
 Programmed Decisions
• It is very common technique of decision making used to solve repetitive and
routine problems.

01 Habits
• Less or no efforts are to be made to make decisions. As the problem arises, it is
solved without much deliberation or thinking about it.
• Gradually, the habit is formed in respect of such repetitive problems which is
used as a technique of decision making

• Certain rules and procedures are formulated to solve simple and repetitive
problems
Standard • They are basically in the form of standing plans such as policies,procedures,
0 procedures rules etc.
and rules • This have twin objectives: 1. they help and guide managers to make
2 decisions and solve problems. 2. they also help to maintain coordination as
well as consistency in respect of managerial actions and decisions.

• Superior and subordinate relationship serves as a systematic and continous

mean of decision making.
Organizational • managers need to have enough authority to solve problems and make
03 decisions.
Structure • authority is delegated from the top to the lower levels and they have the right to
make decisions
• The decisions is supported by a proper information netwrok, so that the
required information to make decisions may be supplied to them.
 Linear Programming Queuing theory

• It used to determine the optimal • Also known as the waiting line

combination of limited resources theory.
to achieve a given purpose at a • applied to maintain a balance
minimum cost. Non-Programmed between the cost of the waiting line
• Baesd on the assumption that Decisions and the cost of preventing a waiting
there exists a lar relationship OR line in respect of personnel,
between the variables.Eg: output Techniques of
equipment and services.
per machine in a given time, operation research
• it is based on the assumption that
material cost etc. although delays are costly,
• Greater the resources leads to eliminating them may be even more
increase the production costly.
• The objective function of this • used in service organizations like
technique is either to maximise tansportation, hospitals etc
benefit or to minimise cost.
 Games Theory Probability Theory
• Based on the assumption that certain
• Used to make decisions specially things are likely to happen in future in a
in competitive and conflicting pattern which can be predicted to some
situations extent by assigning various probaities.
• The competitor is also involved • It is common in all areas.
Non- • In this technique, pay off matrices and
in the game and its role is Programmed decision trees are constructed to
assigned to another member in Decisions represent variables.
the game. • Pay- off matrices help in choosing an
• Moves and counter- moves are appropriate strategy which most likely
made by each member would make the maximum contribution
considering the others as a rival. to achieve the objectives.
• One member chooses a particular • Decision tree is helping managers to
course of action which will assign financial results to various
available course of action, modifying
frustrate and defeat a rival’s these results with probabilities and
action and help in winning the finally making a comparison to select an
game appropriate course of action.
 Simulation Network technique
• Instead of studying and analysing • Network techniques of project
the behaviour of a particular evaluation and review technique
system under several alternative (PERT) and critical path method
conditions in a real situation, a (CPM) are used for planning,
model of it is prepared in an Non- monitoring and implementing time
artificial setting. Programmed bound projects.
• All the features and variables of Decisions • This help managers to decide the
the actual system are structured in logical sequence in which various
the model and by making changes activities will be performed.
in the variables, their • By applying these techniques large
consequences are studied and a and complex projects can be
suitable course of action is executed successfully within the
develpoed to tackle the situation given time schedule and structure
in a real system. of cost.
 MODERN TECHNIQUES OF DECISION MAKING

Heuristic Techniques Creativity

• Based on the assumption that the Participative decision
process of decision making with making
regard to complex and strategic • It is a human faculty ich
problems connot be fully rational • Encourage industrial democracy helps managers to solve
and scientific. and make the role of employees complex and non -
• It is necessary for the decision more meaningful and repetitive problems
maker to take a fragmented view of contributive
the problem breaking it into small • By associating lower level • Stages - preparation,
components managers or subordinates in incubation,illumination,
• Decomposition of the complex decision making, balanced and
problem into small parts d study
elaboration
timely decisions are made.
and analysis of each part may lead • It helps to boost morale and
to an appropriate solution by motivate subordinates and
developing heuristics provide training and
• Refined way of the trial and error development opportunities to
method. them
• Used to apply an analytical
approach and creativity to solve
problems
 Techniques of group decision making
01
i ng • A small group of managers ranging between five and ten is formed.

s o r m • One of them is given the role of leader of the group. he throws light on the various aspects of the problem and

r a in
explains its nature to the members and he will inform about the rules.
B •
•
Free association manner.
They generate different ideas and make improvements upon them
• The following rules are generally followed by the members,

1. The members of the group are asked to generate ideas about the problem and its solution and they are not
allowed to criticise and evaluate the ideas of other members.
2. All ideas generated by the members are taken care of; even if the idea is wild or crude it is include in the list.
sometimes such as may prove to be a real solution to the problem
3. The entire process of brainstorming is focused on generating as many ideas as possible. it is done so that the
best solution may not be overlooked.
4. Every member is allowed to give suggestions on the various ideas so generated. this is done to improve upon
these ideas.
5. In the subsequent session, ideas so generated are reviewed and alternatives evaluated

• This technique is to produce new ideas and solutions by stimulating creativity among the group members.
• It does not offer a readymade solution to the problem.
• It aims at generating possible alternative solutions and leads to evaluation of those for scting a suitable one.
 Techniques of group decision making
02 • It is a more refined and modified version of the brainstorming technique.
ni que • A small group of specialised experts is formed and they are asked to express their opinion on the problem or
phi Tech situation and its solution.
De l • the opinion are not made known to others because anonymity is desired.
• it is a method of collecting the various judgements of experts to solve the problem
• these opinions are consolidated and summarised by the leader of the group and sent back to the experts for
further analysis.
• The following steps are involved:
1. A questionnnaire is prepared on the various aspects of the problem
2. The questionnaire is sent to experts to seek their responses on the various questions. the experts respond
independently and send their responses to the leader of the group
3. the leader of the group complies and analyses the responses received by him and a second questionnaire is
prepared on the basis of it.
4. the second questionnnaire is sent to the members and they are asked to respond to the new set of qurestions.
5. On analysis of the second set of questions, if any area remains untouched or not touched adequately, a third
questionnaire may be designed and sent.
6. The leader attempts to develop unanimity on each aspect of the problem and may come to know a new and
more refined version. it may help to develop a possible solution to the problem.
• anonymity is maintained and the members keep responding to the responses of others. there is no direct
interaction among them.
• every expert gives his independent opinion. he does not know on whose response what new question has been
framed.
 Techniques of group decision making
03 • It is used to improve the effectiveness of group decision making and more effective than brainstorming
up
gro • All members of the group are physically present but do not interact with each other.
l • Specially used to identify a problen and select criteria to be used to evaluate various alternatives
i na ique • In this, a group of individuals is formed to address a particular problem
m
No techn • The problem is experienced by them and they are asked to write all the possible ideas that come to their
mind about it
• Discussion among the group members is not allowed
• They report their ideas to the leader who puts them on a flip chart. The members are further asked to add
new ideas to the list on the basis of the ideas of others
• Once all possible ideas have surfaced and been recorded, the members may be allowed to suggest a
possible solution and comment on the ideas. after discussing all the ideas, their relative merits and
demerits are ascertained
• Then the members of the group privately vote on an idea and assign a particular rank to it on the basis of
priority of the alternative solutions. the idea getting the highest ranking is selected as a solution to the
problem. The group members further discuss the result and continue to generate and discuss ideas.

Generation of ideas Discussion on ideas Evaluation of ideas Voting of ranking

 04 Techniques of group decision making
o wl
h B e
s
Fi hniqu
• Extension of the brainstormtechnique. it is more structured and direct in nature. a group of
experts is formed
Tec • They sit around the table and the central place is occupied by the leader of the group
• The leader expresses his opinion on the problem and suggests some solution for it
• The other members are allowed to ask questions and clarification of the problem is put
forward by the leader
• Once the viewpoint has been dicsussed fully and understood, he gives up his chair to another
member who now becomes the leader. again, the second member gives his view point in the
light of the views expressed by the first leader
• The members can ask questions based on the new ideas which must stem from the first round
of discussion. this cycle of discussion continues till all the members have done their turn as
group leader
• The exchange of ideas and discussion take place only between members of the group and the
group leader. the members arre not allowed to interact with each other.
• In this, the members of the group have opportunities to express their viewpoints as members
as well as leaders. at the end, all the viewpoints and ideas are taken stock of and further
discussed collectively to arrive at a suitable solution
 05 Techniques of group decision making
t i c s
ne c • Developed by william J.J Gordon in 1961, synectics is a technique used to produce
Sy creative solution.
• The term derived from a greek word meaning “the fitting together diverse elements”
• This group is led by an experienced group leader reviews problems by using
techniques such as role plays and use of analogies, paradoxes and metaphors
• The objective is to use novel ideas to stimulate thought processes.
• In most cases, a technical expert is present to assist the group in evaluating the
feasibility of their ideas.
• The judgement of ideas is withheld until all the ideas have been generated, in
synectics, ideas are evaluated from time to time because of the presence of the
technical expert.
 06 Techniques of group decision making
re e
i o nT
c i s
De • This model in the form of a graphic tool that charts the steps to
consider in evaluating each alternative solution in the decision making
• The main points of the decisions tree are;
• Using the information acquired in preparing to make the decision
• Recognising the sequential nature of the decision making process
• Decision tree is a graphic outline of the future choices that the
decisions made in the present will lead to
• Decision tree helps managers to evaluate and arrange the information
in order and
• Decision tree enables managers to introduce a degree of quantifiability
 Common biases and errors in Decision making

Overconfidence Bias

• Tend to be overconfident about our Anchoring Bias

abilities and the abilities of others;also,
we are usually not aware of this bias. A tendency to fixate on initial
• Individuals whose intellectual and 01 02 information,from which one then fails to
interpersonal abilities are weakest are adjust adequately for subsequent
most likely to overestimate their information.
performance and ability

Confirmation Bias Availability Bias

The tendency to seek out information

04 03 The tendency for people to base their
that reaffirms past choices and to judgements on information that is
discount information that contadicts readily available to them
past judgements
 Common biases and errors in Decision making

Escalation of commitment Randomness Error

An increased commitment to a The tendency of individuals to believe

previous decision despite negative
information
05 06 that they can predict the outcome of
random events.

Risk Aversion Hindsight Bias

Tendency to prefer a sure thing 08 07 The tendencyto believe falsely, after

over a risky outcome is risk an outcome of an event is actually
aversion known, that one would have
accurately predicted that outcome
 Models of individual decision making

• This model is idealistic, rational and prescriptive in nature because it prescribes how
managers should behave in the process of decision making.

• it is idealistic in the sense that it cannot be fully applied to a practical solution and rational in
the sense that while using this approach the manager tries to become as much rational as is
possible.
Normative
Model • This approach implies the use of scientific and logical methods. it is marked by the
following features:

1. The approach of decision making followed by managers is systematic, logical and full of
reasoning
Rational
model
2. the use of scientific and systematic methods call for a scientific attitude on the part of
managers backed by empirical verification.

3. In this model, the manager is expected to be objective on his part. He should not allow his
Economic Man bias, emotions and likes and dislikes to interfere with decision making.
Model
4. The manager using this model should have an access to required, relevant and reliable
information on the problem situation.
 5. The manager must attempt to reach some goals that require positive action on his part. These
goals must be definite and clear.

6. The manager must have a clear understanding of action by which goals can be achieved under
the existing environment.
Normative
Model 7. The manager who uses this approach must have an ability to analyse and evaluate alternatives
in the context of the goal to be pursued and must have a desire to optimise benefits by selecting
the best course of action

• Preferably applied to problems that are routine and repetitive in nature and can be programmed
Rational
model • This decision making environment is certain beacuse the decision maker has full knowledge
regarding the problem faced by him.

• It is related to the economic man model. because economic man is always in search of an
Economic Man optimal solution or the best way f doing things to maximise his benefits
Model
 • In real life situations. it is impossible to be rational to solve all types of problems

• Based on this Behaviour approach is developed. it highlights how decisions are made
by managers in practice. it is more pragmatic

• a human being cannot be fully rational. after having taken into account several factors
that affect real - life situations, Herbert Simon has proposed the theory of bounded
rationality.
Behavioural
model • the theory states that the real life decision maker must reconcile with inadequate
information about the nature of the problems and their solution, lack of time or money
to compile more complete information, distorted perception, an inability to remember a
large amount of information and the limits of his own intelligence.
Bounded
• in other words, the norm of rationality is bounded by these limitations and therefore this
Rationality concept is known as bounded rionality.

• the major limitations and inadequacies that bound the rationality of a manager are as
follows:
Administration
man model
 • Lack of information: Managers may not have acess to the requires and relevent
information on the problem. therefore, they are bound to deviate from the norms of
rationality to solve it.

• Time Constraint: In oer to comply with the norm of rationality, managers are required
to study and analyse the problem to discover alternative courses of action, to evaluate
them and then to select an appropriate one. Due to formalities it is a time -consiming
job and does suit every type of problem.
Behavioural
model • Environmental Uncertainties: Decisions are made by managers and are got
implemented later. but the future environment is full of complexities and uncertainties.
they cannot be predicted witha high degree of accuracy. this may force managers to
accommodate their choice accordingly.
Bounded
• Conflicting Objectives: Many decision situations may involve the formulation of
Rationality multiple objectives that may be conflicting each other. in these situations the process of
compromise and adjustment becomes more relevant and effective rather than rationality.
this is because to reduce conflict the formula of give and take has to be adopted which
is less rational and more situational
Administration
man model
 • Nature of the problem: the concept of rationality is also bounded by the nature of the problem.
sometimes the problem may be very complex, unstructured and cannot be defined by using the
norms of rationality. to solve such problems managers have to use their own intution and
experience to restructure and reformulate them.

• organizational constraints: the rationality involved in the process of decision making is also
affected by several organizational variables. these are the phiolosophy of the organization , power
structure, multiplicity of goals, existence of informal groups and set of organizational plans. to deal
with the situation, the manager has to be firm and flexible, cautious and bold. and he may be bound
to make those decisions which are more practicable and feasible even by defying the norms of
Behavioural rationality. this is because he is more concerned and guided by these organizational variables.
model
• acoording to Herbert Simon, the norms of satisfying represents and describes the actual decision
making behaviour of the manager in the organization. the norms of satisfying imply picking course
of action that is satisfactory or good enough under the circumstances. it is true that many manial
decisions are made with a desire to be as safe as possible
Bounded
• one who makes decisions within the limits of rationality is considered as an administrative man as
Rationality against and economic man who represents rational decision making.

• the administrative man makes satisfying decisions by playing safe. such decisions are easy to
understand, more acceptable and practical.
Administration
man model
 • This model is developed by Soelberg (1967)

Implicit • It deals primarily with non - programmed decisions.

Favourite
model • The entire process is desed to justify to the individuals, through the guise of the
scientific rigour, a non programmed decision that has already being made in an
intuitive fashion.

• ByTHEN
MORE doind so they become convinced that they are acting in a rational fashion and
Gamesman making a logical, reasoned decision on an important topic
TEMPLATE
 • This model assumes an organization to be like a garbage can in
which the problem, solutions, choices, players and opportunities
move around randomly. if these factors happen to confront and
connect, the decision is made.

• In this model, decisions are random and unsystematic. the exact

process consists of finding the right solution to the right problem
Garbage Can at the right time among the right players.
Model
• is kind of decision making may be required at the time of crisis
when enough information is not available and the decision is
required to be taken in a logical, step - by -step, systematic
manner.
MORE THEN
TEMPLATE
 • Decision maker takes decisions based on intution which is characterized by the use of
hunches, inner feelings or the gut- feeling of the decision maker.
• Decision maker who makes decisions based on intution, practices management
exclusively as an art.
• this decision maker prefers habit or experience, relative thinking, and instinct using
the unconscious cognitive process
• the decision maker takes into account a number of alternatives into consideration, but
simultaneously jumps one step in analysis and search to another and back again
Intutive -
emotional
approach
• following emotional facors which can adversely affect desion makers:

1. they fasten on the big lie stick with it

2. they are attracted to scandalous issues and heighten their significance
3. they press every fact into a normal pattern
MORE THEN 4. they overlook everything except the immediately useful
TEMPLATE 5. they have an affinity for romantic stories and find such information more significant
than any other kind including hard evidence.

• this type of emotional attachmentsare possible and can lead to poor decisions
• this deision maker is normally an activist, fast mover, incisely question situations and
finds unique solutions to difficult problems
 • This model assumes an organization to be like a garbage can in
which the problem, solutions, choices, players and opportunities
move around randomly. if these factors happen to confront and
connect, the decision is made.

• In this model, decisions are random and unsystematic. the exact

process consists of finding the right solution to the right problem
Garbage Can at the right time among the right players.
Model
• is kind of decision making may be required at the time of crisis
when enough information is not available and the decision is
required to be taken in a logical, step - by -step, systematic
manner.
MORE THEN
TEMPLATE
Individual decision making process
Individual decision-making does not involve a group or even more than one person. Individual
decision-making is quick and generally cost-effective, because it does not require gathering
others and scheduling a meeting or multiple meetings or sending a single email. Individuals have
a tendency to think and question before performing, which is fruitful in analysis and forecasting
of an individual’s behavior.

Pros of Individual Decision Making

• An individual generally makes prompt decisions. While a group is dominated by various

people, making decision-making very time consuming. Moreover assembling group members
consumes lot of time.

• Individuals do not escape responsibilities. They are accountable for their acts and
performance. While in a group it is not easy to hold any one person accountable for a wrong
decision.

• Individual decision making saves time, money and energy as individuals make prompt and
logical decisions generally. While group decision making involves lot of time, money and
energy.

• Individual decisions are more focused and rational as compared to group.

Cons of Individual Decision Making

• A group has potential of collecting more and full information compared to an individual
while making decisions.

• An individual while making any decision uses his own intuition and views. While a group
has many members, so many views and many approaches and hence better decision
making.

• A group discovers hidden talent and core competency of employees of an organization.

• An individual will not take into consideration every members interest. While a group will
take into account interest of all members of an organization.
THANK YOU