DECISION MAKING OF

ORGANIZATION
Paying attention to how your organization handles
decisions right in first step to making the affective,
timely decisions needed to execute business strategies
and realize goals







H.M.Aashir Ul Haq






DECISION MAKING
OF ORGANIZATION

Paying attention to how your organization handles
decisions right in first step to making the affective, timely
decisions needed to execute business strategies and realize
goals

H.M.Aashir Ul Haq

ROLL NO.: 18

INTRODUCTION

Organizations are social inventions for
accomplishing common goals through group
efforts. General motors and NBC news are
obviously organizations, but so are the
Chicago bulls, the sierra club, pearl jam,
and a college sorority or fraternity.
When we say the organization are social
inventions we man that there essential
characteristics is the coordinated presence
of people, not necessarily things.
The field of organizational behavior is about
understanding people and managing them to
work effectively.

Individuals are assembled into organizations
for a reasons. There are variety of
different organizations in which individual
works together to accomplish goals through
group efforts.








DEPATRMENT OF PUBLIC ADMINISTRATION
UNIVERCITY OF KARACHI
2014









Dedicated To My Father:
M. Ata Ul Haque

Preface

During the last few years, a shift has been taking place in the study of
organization and management. Traditionally, the Functions of the
manager have been the framework for the analysis and synthesis of
organizational activities. Organizations have been commonly studied
under the managerial function organizing They were thus viewed as
a subset of the larger activity of managing.
By contrast, many individual today view organizations as much more
than the formal structure that manager create. Although manager
can have a marked effect upon the complex entities we call
organizations, they are only one several influences upon them.
Organizations are systems composed of many subsystems functioning
in an environment. One of the most important of these subsystems is
management. The managerial subsystem must attempt to integrate
these other subsystem so that they are compatible with one another,
with the organizations environment, and with its goals. To do this,
managers must understand how and why organization functions.



Content
S.
No

Topics Page
No
1 Decision making: 1
Well-structured Problems 2
2 The Characteristics Of Decision Making: 3
Levels of deciding 3
3 Organizational Factor In Decision Making 4
4 The complete decision maker--a rational
decision-making model:
4
Problem Identification And Framing 5
5 Improving decision making of
organizations:
6
Training Decision Leaders 7
Stimulating And Managing Controversy 7
6 The decision process: 8
Approaches To Decision Making 8
7 Theories of decision making: 10
Management Of Persuasion 10
A Frame Work For Management 11
8 Summary 13
9 Bibliography 15


decision making
Decision making is the process of
developing a commitment to some course of
action. Three things are not worthy about this
definition. First decision making involves making
a choice among several action alternatives the
store can carry more or less inventory, and the
mental health center can be located on the north
or south end of town. Second decision making is
a process that involves more than simply the final
choice among alternatives if u decide to accept
the offer of a new job, we want to know how this
decision was reached. Finally the "commitment"
mentioned in the definition usually involves some
commitment of resources such as time, money,
or personnel if the store carries a large inventory,
it will tie up cash; if the chairperson of philosophy
offers too many introductory classes, he might
have no one available to reach a graduate
seminar. The Hubble telescope project required a
substantial resource commitment.
In additional to conceiving of decision
making as the commitment of recourses, we can
also describe it as a process of problem solving. A
problem exist when a gap is perceived between
some existing state and some desired state.
Decision making. The
process of developing
commitment to some
source of action.











Problem. A perceived
gap between an
existing state and a
desired state.
Well-structured Problems
For a Well-structured problems, the existing
state is clear, the desired state is clear, and how
to get from one state to the other is fairly
obvious. Intuitively, these problems are simple,
and their solutions arouse little controversy. This
is because such problems are repetitive and
familiar.
Assistant bank manager-- which of these 10
cars loan applications should I prove?
Welfare officer--how much assistant should
this client receive?
Truck driver--how much weight should I
carry?
Because decision making takes time and is
prone to error, organizations (and individuals),
attempt to program the decision making for well
structured problem. A program is simply
standardized way of solving a problem. As such,
programs short-circuit the decision-making
process by enabling the decision maker to go
directly from problem identification to solve.


Well structured
problems. A problem
for which the existing
state is clear, the
desired state is clear
and how to get from
one state to another
is fairly obvious.






Program. A
standardized way of
solving a problem.
The Characteristics Of Decision
Making
It is hard to separate decision making from planning. You might argue
that planning is making decision, because it determines what will be done
now, or next week, or next year, out of a set of many things that could be
done. And u could just as well argue that deciding is planning, because the
very act of choosing a course of action by reaching a decision creates a plan.
Levels Of Deciding
The simplest form of decision making is one in which the information sought
itself reveals the action that should be taken.
1. Automatic Decision
If you are going for a ten-minute jog, the information that ten minutes are
up leads automatically to the decision to stop. If you intend to hire
candidates who pass an employment test, the information on which
candidates passed automatically produces the decision on which candidates
to hire.
2. Expected-Information Decision
Climbing on level higher in complexity, the result of a forecast (or
"expected information") provides the decision on action to take. In this case,
you are not sure of the information-you are someone else must estimate it-
but once the estimate is made, the decision is just as automatic as before. If
you intend to introduce a new product, provided 30% of the prospective
customers like it better than a competitive product, a survey of 100 people
showing that 38% of those sample prefer it (which would tell a statistician
that 30% of the population would definitely prefer it) would mean an
automatic decision to introduce the product.

Organizational Factor In
Decision Making
When we discuss organizations as people-system, we stated that the
manager's world is not a neat organization but a confusing jumble of the
people, displaying all degrees of authority relationship. We pointed out that
a manager takes instructions from many people other than an immediate
superior, including at times people who are actually lower in the
organizational hierarchy. Nowhere do these pressure points become so
obvious as in the process of decision making. When a critical decision must
be made, all sorts of special-interest groups start bringing pressure to bear
on the manager. Some of this input is couched in terms of specialist advice--
the production manager points out how hard it will be to make a new
product and describes the changes that should be introduced for efficiency;
the sales manager advises modification to increase customer acceptance
(and perhaps make the selling job easier); the safety engineer objects to
manufacturing technique as too hazardous; and so forth.

the complete decision maker--a
rational decision-making model
Exhibit 1.1 presents a model of decision process that a relation decision
maker might use. When a problem is identified, a search for information is
begun. This information clarifies the nature of the and suggests alternative
solutions.
EXHIBIT 1.1
These are carefully evaluated, and the best is chosen for implementation.
The implemented solution is then monitored over time ensure its immediate
and continued effectiveness. If difficulties occur at any point in the process,
repetition or recycling may be effected.
Problem Identification And Framing
You will recall that a problem exist when a gap occur between existing and
desired conditions. Such gaps might be signaled by dissatisfied customers or
vigilant superior or subordinates. Similarly, the press might contain articles
about legislation or ads for competing products that signal difficulties for the
organization. The perfect rational decision maker, infinitely sensitive and
completely informed, should be a great problem identifier. Bounded
rationality, however can lead to the following difficulties in the problem
identification:
Perceptual defense. Perceptual system may act to defend the perceiver
against unpleasant perceptions.
Problem defined in terms of functional specialty. Selective perception
can cause decision maker to view a problem as being in the domain of
their own specialty.
Problem defined in terms of solution. This form of jumping to conclusion
effectively short-circuits the rational decision-making process.
Problem diagnosed in terms of symptoms. "what we have here is a
moral problem." while this might be true, a concentration on surface
symptoms will provide the decision maker with few clues about an
adequate solution.

improving decision making of
organizations
It stands to reason that organizational decision making can improve if
decision makers receive encouragement to follow more closely the rational
decision making model shown in exhibit 1.1. This should help to preclude the
various biases and errors that we have alluded to throughout the chapter.
Each of the following techniques has this goals.


Training Decision Leaders
When organizations utilize group decision making, an appointed leader often
convenes the group and guides the decision. The action of this leader can
"make or break" the decision. On the hand, if the leader behaves
autocratically, trying to "sell" a preconceived decision, the advantages of
using a group are obliterated, and decision acceptance can suffer. If the
leader fails to exert any influences, however, the group might develop a law-
quality solution that does not meet the needs of organizations. The use of
role playing training to develop these leader ship skills has increase the
quality and acceptance of group decisions. The following are examples of
skills that people learn in discussion leader training.
State the problems in a no defensive, objective manner. Do not suggest
solution or preferences.
Supply essential facts and clarify any constrains on solution (e.g., "we
can't spend more than $5000").
Wait out pauses. Don't make suggestions or asked leading questions.
Draw out all group members. Prevent domination by one person, and
protect members from being attacked or several criticized.
Ask stimulating questions that move the discussion forward.
Summarize and clarify at several points to mark progress.
Stimulating And Managing Controversy
Full- brown conflict among organizational members is hardly conducive to
good decision making. Individuals will withhold information, and personal or
group goals will take precedence over developing a decision that solve
organizational problems. On the other hand, a complete lack of controversy
can be equally damaging, since alternative points of view that may be very
relevant to the issue at hand will never surface. Such a lack of controversy is
partially responsible for the groupthink effect, and it also contributes to
many cases of escalation of commitment to flawed courses of action. For
example, stifled controversy played a part in the disastrous launch of the
space shuttle challenger and Hubble fiasco.


The decision process
Even if an executive seems to prefer an unstructured decision-making
approach, chances are that at least some rational process is involved. Let us
examine some different techniques, and try to develop an effective decision
pattern.
Approaches To Decision Making
1. Fact. The systematic manager seeks to assemble all the facts about a
problem, after which, presumably, the decision will make itself. This
inference sounds reasonable, and certainly facts are necessary for a good
decision, but it isn't really that simple. For one thing, the available facts are
seldom as clear or complete as one would wish. Sometimes two "facts" may
signal directly opposite decisions, and the manager cannot tell which to
heed. Even without this sort of confusion. There usually are not enough facts
at hand, and it is expensive and time-consuming to get more, so the manager
who deals only with "facts" often does not have enough to solve the
problem.
2. Experience. There is no question that the manager who has been over
the course many times in the past has an edge over the new executive. We
learn from mistakes (or should), and old hands can refer to many past
mistakes to warm them away from the shoals. Even though past events
never coincide precisely with current problems a good manager generalizes
from experience and builds up an informal body of do's and don'ts.
3. Intuition. Intuition has been praised as the indispensible trait for good
manages and criticized as practically immoral. In a way it is both. When good
managers use intuition, they probably summarize hundreds of experiences
into an unconscious pattern of action that draws from experience but also
goes beyond it a bad manager, however, may use "intuition" as a basis for
very superficial decision.
4. Logic. There is more to logical decision making than just "being logical."
it implies a rational study of all elements on each side, considering the
importance of each, weighing the reliability of the information (perhaps
delaying more facts when the available information seems inconclusive), and
analyzing the costs and benefits of each course of action.
5. Systems analysis. The magic of the computer has led many
commentators to include that quantitative decision making has some higher
power that makes it superior to human judgment. This approach is ill-
advised, because by over stating the real benefits of quantitative aids to
management it risks discrediting the whole fields of systems analysis. There
are many aspects of manager's job where the numbers are too numerous or
there interrelation too complex for unaided comprehension, and in such
cases the mathematical summary of what is happening is extremely useful.

theories of decision making
One of the decision of the tremendous current increase in outside pressure
on the manager-whether corporate executive or government official-is the
new spotlight on how decision are made and how executives manage.
Previously, the more invisible executives could remain, the happier they
were-and, they believed, the most effective. Today, like it or not, they must
come out of their shells and plunge into a whole cauldron of outside
activities that make their lives far more complex and harried than ever
before.
Management Of Persuasion
Whether the organization should be hierarchical or a team, it is clear that
good manager's in today's environment cannot ignore the desires, ideas,
ambitions, and feelings of those who work for and with them, John Morgan,
whose recent book presents some serious truths in fable form, others the
following "nine principles of persuasion," based on the goal of managing by
persuading others to do willingly what u want them to do:
1. Make it very clear just where u stand, and why.
2. Emotions persuade more effectively in the short run than facts.
3. By patient in getting your ideas across; it isn't easy.
4. Make use of repetition-repeat the message many different ways.
5. Plan to encounter resistance, and be ready to deal with it.
6. Try to get your colleagues deeply involved personally.
7. Show that the desired action really is feasible-not just a dream.
8. Be perfectly frank in stating your motives-no "hidden agendas.
9. Be totally honest and believable-don't don't use your credibility.
A Frame Work For Management
Once of the cooperate clients of Peter Drucker, dean of US management
consultants, describes Drucker's deceptively simple approach as follows:
"It's not specific advice so much, as that he gives you a frame work in which
to view your business, your markets-and your life." Drucker does describe
detailed techniques or "how-to" formulas he leaves that to others but rather
back off and looks at the goals of the organization, forcing you to consider
the best way to attain them. He is a philosopher of business, which sees at
the most typical (and influential) social institution in today's society. Profits,
says Drucker, are not the "goal" of business (any more than breathing is the
goal of man). Rather, they are the basic need without which there can be no
business. Concord is not necessarily a requirement for management success,
unless there is some specific need for it; indeed, conflict can be healthy. ("So
your salesman and your engineers fight? That is why they should do. God
help you if they are in agreement.")

summary
Some see managers as systematic who carefully review all alternatives
and scientifically select the best; others see them as plagued with doubts and
short of information, selecting any course of action that appears likely to
work. The form of organization, and its expectations, have a good deal to do
with how systematically and effectively its managers behave.
There are several levels of deciding. The simplest level is that where the
information provides almost an automatic choice of decision. At the next
level up in complexity, manager's estimate or expectation of information.
Then comes the case where different pieces of information must be weighed
to determine their relative importance, and finally the most complex case,
where the manager is uncertain both as to the facts and their relative
importance. Structured decision are those where the answer virtually
suggests itself when the information is presented, but most management
decision have very little structure.
Deciding starts with determining the alternatives and tracing their
implications. Usually a choice of one alternative effects action in the future,
and therefore is a broader decision than it appears at first sight. Managers
don't always make "right" decisions, because they are operating under many
pressures from their colleagues, who have weapons to influence the
decision.
Programmable decisions are those with predictable elements, and most
decisions contains some programmable elements. Usually there are key
factor which affect the outcome, and decision makers should concentrate on
these.
Decision should be made at the lowest level where there is competence
and impartially, recognizing that decisions often have wide repercussions.
Decision made by groups are likely to be more acceptable, but not always as
efficient. Seeking group consensus will lead to acceptable decisions, but
seeking facts from the group may lead to a better decision. Decision should
not be made by managers with no responsibilities for the outcome. Decision
involving more money usually are more complex decision, and usually are
made at a higher in the organizational hierarchy.
The actions and decisions of today's manager are publicized more than
ever before, and the increase workload is encouraging some managers to
seek help, sometimes via committee management. Whatever management
approach you use, it must enable you to persuade others to work toward
organizational goals. It is useful to establish a framework for management,
by thinking about how to organization divides up its decision, how it adjusts
to change, and how it fits into society. No manager can be affective without
maintaining personal contact with others in the organizations.

BIBLIOGRAPHY
1. John Gary, Decision making, 4th edition,
London: Harper Collins Publisher, Inc.,
1996, pp. 1-2
2. William D Brinckloe, The characteristics
of decision making, London: collier
Macmillan publishers, Inc., 1997, pp. 3.
3. Ibid, organizational factor in decision
making, pp. 4.
4. Opsit, The complete decision maker--a
rational decision-making model, 4th
edition, London: Harper Collins Publisher,
Inc., 1996, pp. 4-6.
5. Opsit, Improving decision making of
organization, 4th edition, London:
Harper Collins Publisher, Inc., 1996, pp. 6-
8.
6. Opsit, The decision process, London: collier
Macmillan publishers, Inc., 1997, pp. 9-10.
7. Ibid, Theories of decision making, pp. 10-
11.
8. Ibid, Summary, pp. 12-13.