Decision-Making Process Overview

Decision-Making Process

• Problem: A difference between the current state and the desired state.
• Decision Criteria: Factors relevant to the decision.

Planning-Function Decisions

• Setting Goals: Defining short-term and long-term objectives.
• Choosing Strategies: Selecting effective methods for completing tasks.
• Budgeting and Assessing: Evaluating competition and creating budgets.

Decision Implementation

• Act on Decisions: Communicate with stakeholders and secure their commitment.

Circumstances in Decision-Making

• Certainty: Known outcomes.
• Uncertainty: Unknown outcomes.
• Risk: Outcomes with some degree of uncertainty.

Rational Decision-Making Model

• Rational: Consistent and value-maximizing choices.
• Bounded Rationality: Simplified decisions due to constraints.
• Satisficing: Acceptable, "good enough" solutions.

Types of Problems

• Well-Structured: Familiar and straightforward.
• Ill-Structured: Ambiguous and requiring creative solutions.

Programmed Decisions

• Routine and Repetitive: Typical decisions.
• Non-Programmed: Unique and customized decisions.

Decision-Making Aids

• Policies: General guidelines.
• Procedures: Sequential steps.
• Rules: Clear instructions.

Decision-Making Styles

• Directive: Low tolerance for ambiguity, quick decisions.
• Analytical: High tolerance for ambiguity, thorough decision-making.
• Conceptual: Creative solutions, long-term focus.
• Behavioral: People-oriented, collaborative, intuitive.

Organizational Design

• Process: Developing or modifying organizational structure.
• Work Specialization: Dividing work into specific tasks.
• Chain of Command: One boss per employee.
• Span of Control: Number of subordinates a manager effectively handles.
• Organizational Structure - Authority: Right to give orders and expect compliance.
  • Power: Influence beyond position.
  • Responsibility: Obligation to perform assigned duties.
  • Line Authority: Direct authority.
  • Staff Authority: Support role.

Types of Power

• Coercive: Based on fear.
• Reward: Control over valued outcomes.
• Legitimate: Formal position.
• Expert: Knowledge or skills.
• Referent: Admiration or personal traits.

Types of Departmentalization

• Functional: Grouping by functions (e.g., marketing, finance).
• Product: Grouping by products or services.
• Customer: Grouping by customer types.
• Geographic: Grouping by regions or territories.
• Process: Grouping by workflow stages.

Human Resources Management (HRM)

• Goals: Balancing employee supply and demand, matching skills with needs, creating a productive environment.
• Managing: Recruitment, training, motivation, retention of competent employees.

Legal Environment of HRM

• Impact of Laws: Federal, state, and local laws influencing HR practices.
• Affirmative Action Programs: Promoting employment, upgrading, and retention of protected groups.
• Globalization: HR practices and considerations in global business environments.
• Work Councils: Employees consulted on decisions.
• Board Representatives: Employee representation on boards.

Employee Assessment

• Human Resource Inventory: Reporting employee details (education, training, experience).
• Job Analysis: Tasks, duties, and responsibilities; minimum qualifications.

Recruitment and Selection

• Recruitment: Locating and attracting applicants.
• Selection: Screening applicants to find the most suitable candidates.
• Selection Devices: Written tests, performance-simulation tests, interviews.

Employee Orientation

• Goals: Reducing anxiety, familiarizing employees with the organization, facilitating transitions.

Training

• Objective: Improve skills, knowledge, and behavior.
• Methods: On-the-job training (job rotation, understudy assignments) and off-the-job training (classroom lectures, simulations, videos).

Individual Appraisal Methods

• Narrative Appraisals: Critical incidents; written methods.
• Rating Scales: Graphic rating scales; Behaviorally Anchored Rating Scales (BARS).
• 360-Degree Appraisal: Feedback from multiple sources.

Sexual Harassment

• Definition: Unwelcome sexual advances or conduct.
• Hostile Work Environment: Creating an unwelcoming environment.
• Organizational Protection: Sexual harassment policies and prompt action.

Violence in the Workplace

• Types: Violent crimes in the workplace.
• Prevention: Training supervisors, implementing employee assistance programs (EAPs), strong security measures.