Decsion making

Ranjan P. Joshi 9423574106

DECISION MAKING


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Why Decision Making

• For solving problems• For choosing right answers• For resolving confusion( or conflict?)• For satisfaction• A routine requirement– Professional or otherwise

• Nothing is more difficult and therefore more precious than to be able to decide.


How Decision Making


What Is Decision Making

• Decision– Making up our mind.– Making a choice among available alternatives.

• Decision Making– A process of identifying problems and opportunities

and resolving them.– The process of examining your options, comparing

them and choosing a course of action.• Involves efforts before and after the actual choice.


Factors Influencing

• Perception• Priority• Acceptability• Risk• Resources• The inability to make a decision

has often been passed off as a patience


Factors Influencing

• Goals• Values• Demands• Styles• Judgment• When you have to make a choice

and don’t make it, that is in itself is a choice.


6 C’s

• Construct• Compile• Collect• Compare• Consider• Commit• Life is the sum of all your choices


6 C’s

• Construct– A clear picture of what must be decided

• Compile– List of requirements that must be met

• Collect– Information on alternatives that meet the

requirements


6 C’s

• Compare– The alternatives that meet the requirements.

• Consider– What might go wrong of each factor

• Commit– To a decision and follow through it

• Good decisions come from experience and experience comes from bad decisions.


Levels Of Decision


Types Of Decisions

• Programmed– Routine decisions• Choices made in response to relatively well defined

common problems and alternatives• Rules and procedures make it easy

• Some persons are very decisive when it comes to avoiding.


Types Of Decisions

• Non programmed– Made in response to situations that are • Unique, • Poorly defined and largely unconstructed, • Have significant consequences, • Uncertainty is great, • Decisions are complex, • Involve strategic thinking

– Indecision becomes decision with time.


Types Of Decisions

• Adaptive decisions– Choices made in response to combination of

moderately unusual problems and alternative solutions

• Innovative decisions– Decisions based on discover, identification and

diagnosis of unusual and ambiguous problems.


Types Of Decisions


Decision Making Conditions

• Certainty• Risk• Uncertainty• Ambiguity• Corporate culture


Process


Process

Define and digest the problem

Set goals

Search for alternative solutions

Evaluate alternative solutions and select

the best

Implementing the solution

Follow up and control


Barriers

• Escalation of commitment• Technology• Psychological biases• Illusion of control


Inherent Personal Traps

• Trying too hard to play it safe• Letting fears and biases hit your thinking and

analysis• Getting lost in the minimum minutia can cause

trouble• Craving for unanimous approval• Trying to make decisions which are outside

realm of authority


Inherent System Traps

• Willing to begin with too little, inaccurate or wrong information

• Overlook viable alternatives or waste time considering alternatives which have no realistic prospects

• Not following the six C’s• Failure to clearly define the results you expect

to achieve• Worst of all failure to reach a decision

Styles

• Using knowledge, skills and experience• Applying logic to reach conclusions• Analysing issues to understand the whole

picture• Coming to conclusions by hunch• Being led by emotion and sensitivity• Using imagination to create new ideas



Strategies

• Engage in constructive conflict / Brain storming

• Nominal group technique• Delphi technique


Always Remember

• No decision can be made any longer without taking into account not only world as it is but the world as it will be

• Decision making is the cognitive process leading to the selection of course of action among available and suitable alternatives

• Every decision making process produces a final choice. It can be action or an opinion.


Always Remember

• It begins when we used to do something but we do not know what. Therefore decision making is a reasoning process which can be rational and can be based on explicit assumptions or tacit assumptions.


6 Hats

• To use Six Thinking Hats to improve the quality of your decision-making, look at the decision "wearing" each of the thinking hats in turn.

• Each "Thinking Hat" is a different style of thinking. These are explained below:


White Hat

With this thinking hat, you focus on the data available. Look at the information you have, and see what you can learn from it. Look for gaps in your knowledge, and either try to fill them or take account of them.

This is where you analyze past trends, and try to extrapolate from historical data.


Red Hat

Wearing the red hat, you look at the decision using intuition, gut reaction, and emotion. Also try to think how other people will react emotionally, and try to understand the intuitive responses of people who do not fully know your reasoning.


Black Hat

When using black hat thinking, look at things pessimistically, cautiously and defensively. Try to see why ideas and approaches might not work. This is important because it highlights the weak points in a plan or course of action. It allows you to eliminate them, alter your approach, or prepare contingency plans to counter problems that arise.


Black Hat

• Black Hat thinking helps to make your plans tougher and more resilient. It can also help you to spot fatal flaws and risks before you embark on a course of action. Black Hat thinking is one of the real benefits of this technique, as many successful people get so used to thinking positively that often they cannot see problems in advance, leaving them under-prepared for difficulties.


Yellow Hat:

The yellow hat helps you to think positively. It is the optimistic viewpoint that helps you to see all the benefits of the decision and the value in it, and spot the opportunities that arise from it. Yellow Hat thinking helps you to keep going when everything looks gloomy and difficult.


Green Hat

The Green Hat stands for creativity. This is where you can develop creative solutions to a problem. It is a freewheeling way of thinking, in which there is little criticism of ideas. A whole range of creativity tools can help you here.

http://www.mindtools.com/pages/main/newMN_CT.htm


Blue Hat

The Blue Hat stands for process control. This is the hat worn by people chairing meetings. When running into difficulties because ideas are running dry, they may direct activity into Green Hat thinking. When contingency plans are needed, they will ask for Black Hat thinking, and so on.

THANK YOU


Decsion making

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