{"id":16,"date":"2023-11-01T12:21:22","date_gmt":"2023-11-01T12:21:22","guid":{"rendered":"https:\/\/ignou.uniprojgm.com\/?p=16"},"modified":"2023-11-01T12:21:23","modified_gmt":"2023-11-01T12:21:23","slug":"describe-different-types-of-managerial-decisions-and-the-steps-and-the-techniques-used-for-decision-making-discuss-individual-vs-group-decision-making","status":"publish","type":"post","link":"https:\/\/ignou.uniprojgm.com\/index.php\/2023\/11\/01\/describe-different-types-of-managerial-decisions-and-the-steps-and-the-techniques-used-for-decision-making-discuss-individual-vs-group-decision-making\/","title":{"rendered":"Describe different types of managerial decisions and the steps and the techniques used for decision making. Discuss Individual Vs Group decision making."},"content":{"rendered":"\n

Types of Managerial Decisions:<\/strong><\/h2>\n\n\n\n

Personal and Organizational Decisions<\/strong>:<\/h3>\n\n\n\n
    \n
  • This classification distinguishes decisions made for personal goals from those made for organisational goals.<\/li>\n\n\n\n
  • It recognizes that managers often have to navigate conflicts between personal and organisational objectives.<\/li>\n<\/ul>\n\n\n\n

    Basic and Routine Decisions<\/strong>:<\/h3>\n\n\n\n
      \n
    • Basic decisions involve unique, long-term commitments or large investments that impact the organization significantly.<\/li>\n\n\n\n
    • Routine decisions are repetitive and have a smaller individual impact, but collectively play a vital role in the organization’s success.<\/li>\n<\/ul>\n\n\n\n

      Programmed and Non-programmed Decisions<\/strong>:<\/h3>\n\n\n\n
        \n
      • Programmed decisions are routine and repetitive, often handled through established procedures.<\/li>\n\n\n\n
      • Non-programmed decisions are unique and require managers to use their judgement and available information.<\/li>\n<\/ul>\n\n\n\n

        Gresham’s Law of Planning<\/strong>:<\/h2>\n\n\n\n
          \n
        • This principle highlights the tendency for routine decisions to take precedence over unique, thought-intensive decisions.<\/li>\n\n\n\n
        • It acknowledges that managers often prioritize clearing routine tasks before addressing more complex, non-programmed decisions.<\/li>\n<\/ul>\n\n\n\n

          Complexity and Certainty Dimensions<\/strong>:<\/h3>\n\n\n\n
            \n
          • The passage introduces two problem-related dimensions: complexity and certainty.<\/li>\n\n\n\n
          • Based on these dimensions, four types of decision modes are identified: Mechanistic, Analytical, Judgmental, and Adaptive.<\/li>\n<\/ul>\n\n\n\n

            Types of Managerial Decisions:<\/strong><\/strong><\/h2>\n\n\n\n

            Mechanistic Decisions<\/strong>:<\/strong><\/h3>\n\n\n\n
              \n
            • Routine and repetitive decisions handled with established procedures or habitual responses.<\/li>\n\n\n\n
            • Often involve a limited number of decision variables and known outcomes for each alternative.<\/li>\n<\/ul>\n\n\n\n

              Analytical Decisions<\/strong>:<\/strong><\/h3>\n\n\n\n
                \n
              • Involve problems with a large number of variables, where outcomes for each alternative can be computed.<\/li>\n\n\n\n
              • Solutions can be found using computational techniques provided by management science and operations research.<\/li>\n<\/ul>\n\n\n\n

                Judgemental Decisions<\/strong>:<\/strong><\/h3>\n\n\n\n
                  \n
                • Involve problems with a limited number of variables, but outcomes of alternatives are unknown.<\/li>\n\n\n\n
                • Requires good judgement to increase the likelihood of desired outcomes.<\/li>\n<\/ul>\n\n\n\n

                  Adaptive Decisions<\/strong>:<\/strong><\/h3>\n\n\n\n
                    \n
                  • Involve problems with a large number of variables, where outcomes are unpredictable.<\/li>\n\n\n\n
                  • Complex and uncertain problems that often require contributions from individuals with diverse technical backgrounds.<\/li>\n<\/ul>\n\n\n\n

                    <\/p>\n\n\n\n

                    INDIVIDUAL VERSUS GROUP DECISION MAKING<\/strong><\/h2>\n\n\n\n

                    Individual Decision Making<\/strong>:<\/h3>\n\n\n\n

                    Advantages<\/strong> Individual Decision Making<\/strong>:<\/h3>\n\n\n\n
                      \n
                    • Quick and efficient for routine decisions.<\/li>\n\n\n\n
                    • Maintains confidentiality and reduces conflicts.<\/li>\n<\/ul>\n\n\n\n

                      Disadvantages<\/strong> Individual Decision Making<\/strong>:<\/h3>\n\n\n\n
                        \n
                      • Limited perspectives and ideas.<\/li>\n\n\n\n
                      • Risk of biases or tunnel vision.<\/li>\n<\/ul>\n\n\n\n

                        Group Decision Making<\/strong>:<\/h3>\n\n\n\n

                        Advantages of Group Decision Making:<\/strong><\/h3>\n\n\n\n
                          \n
                        • Accumulation of more knowledge and facts.<\/li>\n\n\n\n
                        • Broader perspective, leading to consideration of more alternative solutions.<\/li>\n\n\n\n
                        • Increased satisfaction and support from individuals participating in the decision.<\/li>\n\n\n\n
                        • Serves an important communication and political function.<\/li>\n<\/ul>\n\n\n\n

                          Disadvantages of Group Decision Making:<\/strong><\/h3>\n\n\n\n
                            \n
                          • Slower decision-making process compared to individual decision-making.<\/li>\n\n\n\n
                          • Involves compromise, potentially resulting in suboptimal decisions.<\/li>\n\n\n\n
                          • Possibility of domination by one individual or a small group.<\/li>\n\n\n\n
                          • Over-reliance on group decision-making can hinder swift and decisive action.<\/li>\n<\/ul>\n\n\n\n

                            Harrison’s Summary on Group Impact in Decision Making:<\/strong><\/h2>\n\n\n\n
                              \n
                            • Groups are typically superior in establishing objectives due to their collective knowledge.<\/li>\n\n\n\n
                            • Individual efforts are crucial in identifying unique solutions, which can later be considered by the group.<\/li>\n\n\n\n
                            • Group judgement often surpasses individual judgement in evaluating alternatives.<\/li>\n\n\n\n
                            • Involving group members in choosing an alternative leads to greater acceptance of the final outcome.<\/li>\n\n\n\n
                            • Individual responsibility tends to be superior in implementing decisions compared to group responsibility.<\/li>\n<\/ul>\n\n\n\n

                              Risky Shift Phenomenon<\/strong>:<\/h4>\n\n\n\n
                                \n
                              • Contrary to popular belief, groups tend to make riskier decisions than individuals.<\/li>\n\n\n\n
                              • Possible reasons include persuasive risk-takers, increased confidence with familiarity, diffused responsibility, and a societal preference for risk-taking.<\/li>\n<\/ul>\n\n\n\n

                                Groupthink<\/strong>:<\/h4>\n\n\n\n
                                  \n
                                • This phenomenon involves a mode of thinking in a group where seeking consensus overrides critical thinking.<\/li>\n\n\n\n
                                • It can lead to limited consideration of alternatives, resistance to re-evaluation, and a lack of contingency planning.<\/li>\n<\/ul>\n\n\n\n

                                  Both risky shift and groupthink can have detrimental effects on the quality of decision-making, potentially leading to suboptimal outcomes.<\/p>\n\n\n\n