Decision Making, Types of Decision Making, Decision making Techniques

Summary

This educational video from educationleaves.com delves into decision-making in management, outlining its significance in achieving organizational goals. It categorizes decisions into programmed vs. non-programmed, major vs. minor, routine vs. strategic, organizational vs. personal, individual vs. group, policy vs. operational, and long-term vs. departmental vs. non-economic. The script also contrasts traditional and modern decision-making techniques, emphasizing the evolution from habits and intuition to sophisticated methods like operation research and computer simulation.

Takeaways

• 📚 Decision making in management is a critical process that involves choosing between alternatives to achieve goals.
• 🔍 Managerial decision making encompasses what, how, when, and who aspects of organizational actions.
• 📈 There are various types of decision making, including programmed vs. non-programmed, major vs. minor, routine vs. strategic, organizational vs. personal, individual vs. group, policy vs. operational, and long-term vs. departmental vs. non-economic decisions.
• 🏢 Programmed decisions follow established rules or procedures, simplifying choices like salary scales for new hires.
• 🆘 Non-programmed decisions address unusual or significant problems not covered by standard policies.
• 🛠️ Major decisions involve significant financial or operational impact, such as purchasing expensive equipment.
• 🔄 Routine decisions are repetitive and can be made by middle management without extensive analysis, like sending samples for testing.
• 🌟 Strategic decisions are high-level, policy-related, and involve substantial financial commitment, such as capital expenditures.
• 👤 Organizational decisions reflect the company's policy and are made by managers on behalf of the organization.
• 👥 Group decisions are made through committee meetings and are crucial for the organization's direction and operations.
• 🛑 Policy decisions, made by top management, have a long-term impact and are related to the company's foundational policies.
• 🔧 Modern decision-making techniques include operations research, mathematical analysis, computer simulation, and data processing, in contrast to traditional techniques like habit, intuition, and standard operating procedures.

Q & A

What is decision making in management?

Decision making in management is the process of judgment by which one can choose between a number of alternative courses of action for the purpose of achieving goals.

What are the key elements that managerial decision making addresses?

Managerial decision making addresses what should be done, how it should be done, when it should be done, and by whom it should be done.

What is the difference between programmed and non-programmed decisions?

Programmed decisions are those made in accordance with established habits, rules, or procedures, while non-programmed decisions deal with unusual problems that do not have established policies or require special treatment.

Why are major decisions significant in an organization?

Major decisions are significant because they involve large expenditures and can have a substantial impact on the organization, such as purchasing expensive equipment.

How do routine and strategic decisions differ?

Routine decisions are repetitive and do not require extensive analysis, often handled by middle management, while strategic decisions are related to the organization's policy, involve significant funds, and are taken by high-level management.

What is the role of organizational and personal decisions in management?

Organizational decisions are made on behalf of the company and reflect its policy, whereas personal decisions are individual choices made by managers that are not necessarily as a member of the organization.

Why are group decisions important in an organization?

Group decisions are important because they are made through committee meetings and involve multiple perspectives, which can lead to more comprehensive and effective decisions for the organization.

How do policy and operational decisions differ in terms of their impact and who takes them?

Policy decisions are critical and have long-term impacts, taken by top management, while operational decisions relate to day-to-day operations and are taken by lower-level management.

What is the significance of long-term, departmental, and non-economic decisions?

Long-term decisions are significant because they are made for a longer time period and involve high risk. Departmental decisions are specific to a particular department and are taken by the departmental head. Non-economic decisions are related to factors such as technical values and moral behavior.

What are some traditional and modern techniques used in decision making?

Traditional techniques include habit, critical routine, standard operating procedures, and well-defined informational channels. Modern techniques involve operations research, mathematical analysis, computer simulation, and data processing.

How can one access the full article or download the PDF mentioned in the script?

The full article or PDF can be accessed through the link provided in the description of the video.