Managing Decision Making PDF

BN 3002 -Maintenance Management Managing Decision Making  Deciding – a definition ‘The action a manager must take in reaching a conclusion, coming to a resolution or making a judgement’ R W Nickson ‘How to be a Successful Manager’ Decision : A choice made between two or more alter...

BN 3002 -Maintenance Management Managing Decision Making  Deciding – a definition ‘The action a manager must take in reaching a conclusion, coming to a resolution or making a judgement’ R W Nickson ‘How to be a Successful Manager’ Decision : A choice made between two or more alternatives. Decision making is the process of choosing the best alternative to achieve our aim Types of Decisions Instinctive - flee or fight – gut reaction Rational –method of selecting among possible choices based on reason Aesthetic – which painting is better? Emotional – Who to vote for? Types of Decisions: Decision Making Process May be:- Objective (Real facts)- measurable facts Subjective (Thoughts or feelings influenced- personal opinion) Formal (By committee or meeting & recorded) Informal Immediate- delay may cause damage Time delayed – enough time to evaluate opportunities Types of Decisions: Decisions made by managers at 2 levels but both are important. Strategic Decisions Made by senior managers these influence the direction of the company in the medium to long term Operational Decisions ‘Day to Day’ operations type decisions are made by junior mangers  Types of Decisions Hellrigel identified 3 types of decision:- 1) Routine These are decisions made in relation to repetitive and well known problems. 2) Adaptive This type of decision builds on past decisions – problems are somewhat unusual and partly understood. 3) Innovative These decisions are new and deal with problems that are being identified for the first time.  Types of Decisions Richard Daft distinguished between two types:- 1) Programmed decisions are made under clear conditions. These decisions are made by managers many times before. 2) Non programmed decisions are made under unclear conditions.  The Decision Making - Situation It may be a problem i.e. actual actions have failed to meet objectives. It may be an opportunity for organisation to exceed current objectives. Decision Influences Our experience Our values Our role & position in company Our peers, family & colleagues Others in authority above us knowledge / education Reputation (1)Decision Making – NASA Model Decision Making – Rational Model (2) Decision Making – Rational Model Adopted if the decision making process is taking place in a ‘normal’ or perfect conditions 1) The decision maker operates to achieve goals that are known and agreed. 2) Collect ALL the required information in order to make low risk decisions in certainty 3) The decision maker fully evaluates ALL alternatives and chooses that which will benefit the organisation the most 4) The decision maker is rational, will think logically, give values, order preferences and evaluate alternatives without favouritism. (3) Decision Making – Bounded Rationality Model (Herbert Simon) Decision makers have limited time, information and ability to make decision – decisions are therefore less than rational. In these situations decision makers operate in a situation of bounded rationality – their ability to decide & act rationally is limited. Managers suggest the first satisfactory alternative. Managers will therefore often make safer choices mostly agreed by all. Managers are comfortable making the decisions without evaluating all the alternatives. (4) Decision Making – Political Model People have well defined preferences, collect the knowledge they need to make a decision, weigh their option and choose the option that are more close to their ideas. People are different in their thinking, use information incorrectly, are very sure in their choices and make quick decisions based on incomplete knowledge. Decision making is driven by self interests & goals of powerful stakeholder groups Decisions are not often rational Decisions usually good for the group or department and sometimes for the individual. Power is the ability to control how problems are defined, solutions are selected, what decisions are made. Disagreement and conflict over problems and solutions are normal (5) Decision Making – Group Decision Making Model Decisions achieved through group decision making Shared knowledge, skills & experience Pressure is off the manager to decide Solution more likely to be widely accepted Because of participation from many members, quality of decision good. Decision Making – Group Decision Making Model Can be slow process Group work against agreement – sub groups One person can hijack the group Sometimes decision made by group members may be a compromise between various options given by other group members. (6) The Vroom Jago – Group Decision Making Model Leader makes own decision with the information available with him at that time. Leader collects information from staff, make decision alone which may or may not be shared with his staff. Leader shares problem with individual staff, take their ideas and suggestions and make decision alone. Leader shares problem with the staff as a group, take their ideas and suggestions and make decision alone. Leader shares problem with the staff as a group and takes a decision accepted by all.  References Brian. J. B. Wood, (2009), Building Maintenance, Wiley Blackwell Barrie Charter & Peter Swallow (2008), Building Maintenance Management, Second edition, Blackwell publishing. Pauls wordsworth, (2001) Lee’s Building Maintenance Management, Fourth Edition,Wiley Blackwell