Decision-Making Process

Decision-Making Process

• A decision is needed when there is a gap between the current and desired state.
• Relevant factors are considered when making decisions.

Planning-Function Decisions

• Setting short-term and long-term goals
• Efficient task completion strategies
• Budgeting and assessing competition

Decision Implementation

• Communicate decisions to affected parties
• Secure commitment

Circumstances in Decision-Making

• Certainty: known outcomes
• Uncertainty: unknown outcomes
• Risk: probable outcomes with some uncertainty

Rational Decision-Making Model

• Consistent choices to maximize value
• Bounded rationality/Simplified decision-making due to constraints
• Satisfying: good enough solutions

Types of Problems

• Well-structured: familiar, straightforward
• Ill-structured: ambiguous, need creative solutions

Programmed vs. Nonprogrammed Decisions

• Programmed decisions: routine and repetitive
• Non-programmed decisions: unique and customized solutions

Decision-Making Aids

• Policy: general guidelines
• Procedure: sequential steps
• Rule: clear instructions

Decision-Making Styles

• Directive: low tolerance for ambiguity, logical, quick, short-term focus
• Analytic: high tolerance for ambiguity, thorough decision-making
• Conceptual: creative solutions, long-term perspective.
• Behavioral: people-oriented, collaborative, intuitive

Organizational Design

• Process of developing or changing an organization's structure
• Work Specialization: dividing work into specific tasks
• Organizational Structure - Control:
  • Chain of Command: One boss per employee for clarity
  • Span of Control: Number of subordinates a manager can effectively handle
• Organizational Structure - Authority:
  • Authority: Right to give orders and expect compliance
  • Power: influencing beyond position
  • Responsibility: obligation to perform assigned duties
  • Line Authority: Direct authority over subordinates (decision-making)
  • Staff Authority: Support role (advice or policy enforcement)

Types of Power

• Coercive: based on fear
• Reward: control over valued outcomes
• Legitimate: position in formal hierarchy
• Expert: based on knowledge or skills
• Referent: influence through admiration or personal traits

Types of Departmentalization

• Functional: grouped by functions (marketing, finance)
• Product: grouped by products or services
• Customer: grouped based on customer types
• Geographic: grouped by regions or territories
• Process: grouped by workflow or process stages

Human Resources Management (HRM)

• Managing recruitment, training, motivation, retention of competent employees
• Goals: Balance employee supply with demand, match skills with organizational needs, foster a productive work environment

Legal Environment of HRM

• Impact of laws: Federal, state, and local laws influence HR practices.

• Affirmative Action Programs: Promote employment, upgrading, and retention of protected groups.

• Globalization's impact on HR practices

• Work Councils: Employees are consulted on decisions

• Board Representatives: Employees represented on boards.

Employee Assessment

• Human Resource Inventory: a report listing employee details (education, training, experience)
• Job Analysis Components: Job Description (tasks, duties) and Job Specification (minimum qualifications)
• Recruitment and Selection: Locating and Screening applicants
• Selection Devices: Written tests, Performance-Simulation Tests, Interviews
• Employee Orientation: Reduce anxiety, familiarize employees with the organization

Training

• Objective: improve skills, knowledge, and behaviors
• Methods: On-the-job (job rotation, understudy), Off-the-job (classroom lectures, simulations)

Individual Appraisal Methods

• Narrative Appraisals: Critical incidents, written methods
• Rating Scales: Graphic rating scales, BARS (behaviorally anchored rating scales)
• 360-Degree Appraisal: Feedback from multiple sources

Sexual Harassment

• Definition: Unwelcome sexual advances or conduct affecting employment or creating a hostile work environment.
• Organizational protection: Sexual harassment policies, prompt action on complaints

Violence in the Workplace

• Types: Violent crimes at work
• Prevention: Training supervisors, implementing employee assistance programs (EAPs), strong security measures