organizational decisions
TRANSCRIPT
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Organizational Decisions
Individual decisions & Group Decisions
Programmed & Non programmed Decisions
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Strategic Decisions
Administrative Decisions
Routine Decisions
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ORGANIZATIONAL DECISIONS
Decisions to watch television, to study,
Or retire early are examples of personal decisions.
Such decisions, pertain to managers as individuals & effect indirect way.
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A personal decision to purchase a Maruti rather than an Ambassador, indirectly helps one firm due to the sale and hurts another because of the lost sale. Personal decisions cannot be delegated and have a limited impact.
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Organizational decisions are made by managers,
In their official or formal capacity.
These decisions aimed for organization and can be delegated.
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While trying to deliver value to the organization,
Managers are expected to keep the interests of all stakeholders
Also in mind—such as employees, customers, suppliers, the general public etc.
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They need to take decisions carefully
So that all stakeholders benefit by what they do,
Like price the products appropriately,
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Do not resort to unethical practices,
Do not sell low quality goods etc.
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Individual decisions are taken by a single individual.
They are mostly routine decisions.
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Decisions taken by a group ofindividuals constituted for thispurpose;
Group decisions, compared toindividual decisions,
Have far reaching consequences,
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and impact a number of persons and departments.
They require serious discussion, deliberation and debate.
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A group has more information than an individual.
Members, drawn from diverse fields, can provide;
More information and knowledge about the problem.
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A group can generate a greater number of alternatives.
It can bring to bear a wider experience, a greater variety of opinions;
More thorough probing of facts than a single individual.
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Participation in group decisions increases acceptance and commitment,
On the part of people who now see the solution as their own,
And acquire a psychological stake in its success.
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People understand the decision better
Because they saw and heard it develop;
Then paving the way for smooth implementation of the decision.
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Interaction between individuals with varied viewpoints
Leads to greater creativity.
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Groups are notorious time-wasters.
They may waste a lot of time and energy,
Clowning around and getting organized.
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Groups create pressures towards conformity;
other infirmities, like group think, force members to compromise on
The least common denominator.
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Presence of some group members, who are powerful and influential may intimidate
Prevent other members from participating freely.
Domination is counter-productive;
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It puts a damper on the groups best problem solvers.
It may be very costly to secure participation;
From several individuals in the decision making process.
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A programmed decision is one that is routine and repetitive.
Rules and policies are established well in advance;
To solve recurring problems quickly.
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A hospital establishes a procedure for admitting new patients and this helps everyone to put things in place quickly and easily even when many patients seek entry into the hospital.
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Programmed decisions leave no room for discretion.
They have to be followed in a certain way.
They are generally made by lower level
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Personnel following established rules and procedures.
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Deal with unique/unusual problems.
Such problems crop up suddenly;
There is no established procedure or formula to resolve them.
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Deciding whether to take over a sick unit,
How to restructure an organization to improve efficiency,
Where to locate a new company warehouse, are examples.
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They are novel and non-recurring
There are no readymade courses of action to resort to.
Because, non-programmed decisions often involve broad,
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Long-range consequences
For the organization, they are made
By higher-level personnel only.
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Managers need to be creative when solving the infrequent problem;
And such situations have to be treated each time they occur.
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Non-programmed decisions are quite common in such organizations
As R&D firms where situations are poorly structured,
And decisions being made are non-routine and complex.
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Concerned with relatively routine problems.
They are structured and repetitive in nature.
Solutions are offered in accordance with some habit, rule or procedure
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Such decisions are relatively simple and have a small impact.
The information relating to these problems is readily available
And can be processed in a pre-determined fashion.
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They consume very little time and effort since they are guided
By predetermined rules, policies and procedures.
Made by lower level executives.
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Concerned with unique and novel problems.
They are unstructured, non-repetitive and ill defined.
There are no pre-established policies or procedures to rely on.
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Each situation is different and needs a creative solution.
Such decisions are relatively complex;
And have a long-term impact
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The information relating to these problems is not readily available.
They demand lot of executive time, discretion and judgment.
Top management responsibility.
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Strategic decision making is a top management responsibility.
Most vital decisions affecting many parts of an organization.
They require sizeable allocation of resources.
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They are future oriented with longterm ramifications.
They can either take a company to commanding heights
Or make it a ‘bottomless pit’!
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Deal with operational issues
Dealing with how to get various aspects of strategic decisions
Implemented smoothly at various levels in an organization.
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They are mostly handled by middle level managers.
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They are repetitive in nature.
They require little deliberation
Generally concerned with short-term commitments.
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They ‘tend to have only minor effects.
On the welfare of the organization’.
Generally, lower-level managers look after such mechanical or operating decisions.
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