Decision Making Process

Decision Making Process1.0 INTRODUCTIONGlobalism is the term that being mentioned everywhere in the field of business at present. Thus, due to lots of untried developments and emerging techniques ar introduced in the musical arrangements very rapidly, creates a number of troubles in the field of management. The business solving and close-making process begins when recognizing the problem, experiencing pressure to mould on it, and the resources to resolve the problem. This throw step forward be done only by a manager, whose key roles argon solving problems and making ratiocinations. He must confess problems, make a decision, initiate an action, and evaluate the endings. It is difficult to make good decisions without good planning. Generally, a problem can be solved by thought about(predicate) the issue and making logical decisions. These are mostly assumptions that can predict the decisions that are being regulationted as a result of the problems. This can likewise be given as judicious mentation of the organizational problem solving strategy can be benefited by a confirming result.2.0 WHAT IS RATIONALITY?Rationality is related to the idea of case, referring to thinking that gives an account or an explanation. Rationality and reason are the key methods used to analyze the data equanimous through clayatically gathered observations. It besides gives the success of goal attainment. Rationality is equated with behavior that is self-interested to the point of being selfish.Whereas, irrationality refers to talking or acting without conceive to rationality. Peoples actual interests differ from what they believe to be their interests. Mechanisms that have evolved to give optimal behavior in normal conditions lead to irrational behavior in subnormal conditions.Thus, rational behavior in an organization is nonhing but having sound judgment and practical implementation. There are 2 types of rationality that are existed. They areMathematical RationalityFunctional Rationality2.1 Mathematical rationalityMathematics can be used to formulate objective knowledge. The mathematical formulation enables us to express the knowledge of reality with a maximum degree of objectivity. There are number of affirmable designions of mathematics, it is open to the jeopardy of choosing different hypotheses, a attempt which is technically called undesirability.2.2 Functional rationalityFunctional rationality prevails in an organization of human activities in which the thought, knowledge, and reflection of the participants are virtually unnecessary men bring to pass part of a mechanical process in which each is assigned a functional position and role. What they forfeit in creativity and initiative is gained by the organization as a whole and contributes, presumably, to its greater efficiency. Bureaucratic organizations strive for maximum functional rationality.2.3 SCIENTIFIC RATIONALITYThe history of science constitutes the evident for t he concept of rationality. A good theory of rationality must fit the history of science. A methodology for scientific rationality is a theory of rationality, it tells us what is rational and what is not in specific cases. Always accept the theory with the greatest degree of confirmation.3.0 ADVANTAGES OF RATIONALITYThinking rationally means thinking logically.Rational thoughts get out be always right and true. Its a sole source of knowledge. Rational thinking gives confidence. It financial aids to make decisions.Rational decision making is good for incremental, linear causality. lot solve problems incase of critical situations.Gives independent thinking and meaningful orientation.There is a traditional ingrained habituation.It avoids a value-laden assessment.It ultimately leads to self-awareness.4.0 LIMITATIONS TO RATIONALITYThe incompleteness of courtly logical systems can be an incontrovertible truth.An arithmetical statement is true but not provable in the theory. Any theory c apable of expressing easy arithmetic cannot be both consistent and complete. Rationality is arbitrary, subjective and incapable of describing something completely. Rational approach will always fail eventually. It evaluates uncertainty.5.0 APPLICATIONS OF RATIONALITYThere are different applications of rationality. They can be classified into normative and positive forms of applications. They areThe firm acts rationally and this is to predict behavior. For example the firm makes decisions according to options that can predict the behavior of the firm.The firm will be a better off if it makes its decision following a rule derived from rational abstract. For example using an options formula will improve a firms capital allocation.The user must verify that the environment fits the assumptions of the model. For example, the assumptions made in mathematics model derivations should be true of the strategic context.Instead of presenting a mathematical model, the general implications of a theory can be taken and applied without working out mathematics. These applications run the real risk that the assumptions of the model are not checked for their fit with the real world.6.0 PROBLEM SOLVINGProblem solving forms part of thinking, the most complex of all understanding functions. Problem Solving has been defined as gameer-order cognitive process that petitions the modulation and control of more routine or fundamental skills. It occurs if an artificial intelligence system does not know how to proceed from a given state to a desired goal state. It is part of the larger problem process that includes problem purpose and problem shaping.The problem-solving process operates under awareness versus outside of awareness, and typically employs mathematically well-defined computerized systems. Problem-solving often involves decision-making, and decision-making is especially important for management and leadership.There are galore(postnominal) a(prenominal) approaches to pro blem solving, depending on the nature of the problem and the people involved in the problem. The more traditional, rational approach is typically used and involves. There are many techniques for problem-solving. They areChallenge your assumptionsLateral thinkingDivide and conquerHill-climbing strategyTrail and errorBrainstormingMorphological analysisHypothesis testingRoot-cause analysisBreak big problems downAsk tercet peopleWrite down the problemChange your perspectiveGeneralization and specializationWorking rearwardsThese techniques can be applied to an organization by using certain tools. They areExtracting maximum information from facts Appreciation Understanding problems in detail Drill-Down Identifying possible causes of problems Cause Effect Diagrams Understanding how a process works head for the hills Charts Understanding the way factors affect one-another Systems Diagrams Analyzing Strengths, Weaknesses, Opportunities and Threats SWOT Analysis Making Cash Flow For ecasts with Spreadsheets Methods of Risk Analysis Understanding where the power lies Porters Five Forces Understanding the big picture PEST Analysis Identifying what really matters to customers Value Chains Find your warring edge with USP AnalysisFor example, taking my own organizational experience (I-Tech Ppl Staffing Solution, Chennai, India) we had certain issues relating to location change in our organization where we used some techniques like geomorphologic analysis, etc. we also used certain tools in relation to the problem solving technique i.e. SWOT Analysis and PEST Analysis for solving our organizational problems.7.0 DECISION-MAKINGDecision making can be regarded as an outcome of mental processes (cognitive process) leading to the selection of a course of action among some(prenominal) alternatives. Every decision making process nominates a final choice. The output can be an action or an opinion. Human performance in decision making terms has been subject of active r esearch from several perspectives. From a psychological perspective, it is necessary to examine individual decisions in the context of a set of needs, references an individual has and determine he/she seeks. From a cognitive perspective, the decision making process must be regarded as a continuous process integrated in the fundamental interaction with the environment. From a normative perspective, the analysis of individual decisions is concerned with the logic of decision making and rationality. The decision-making process can be explained by devil different models. They areGarbage roll in the hay ModelCarnegie ModelGARBAGE CAN MODELThe Garbage Can Model of organizational choice was formulated by Cohen, defect and Oslen. The Garbage Can Model deals with the pattern or flow of multiple decisions within organization. It was developed to explain the pattern of decision-making in organizations that experience extremely high uncertainty. It was developed in reference to ambiguous be haviors, i.e. explanations/interpretations of behaviors which at least(prenominal) appear to contradict classical theory. The Garbage Can Model was greatly influenced by the credit that extreme cases of aggregate uncertainty in decision environments would trigger behavioral responses which, at least from a distance, appear irrational or at least not in compliance with the total/global rationality of economic man. An organized Anarchy can be caused by three characteristics moot PreferencesUnclear, poorly understood technologyTurnoverThe theoretical breakthrough of the Garbage Can Model is that it disconnects problems, solutions and decision makers from each other, unlike traditional decision theory. unique(predicate) decisions do not follow an orderly process from problem to solution, but are outcomes of several relatively independent streams of events within the organization.THE STREAMS OF EVENTSPROBLEMSProblems require attention, they are the result of performance gaps or the in ability to predict the future. Thus, problems whitethorn originate inside or outside the organization. Traditionally, it has been assumed that problems trigger decision processes if they are sufficiently grave, this may happen. Usually, however, organization man goes through the garbage and looks for a suitable fix, called a solution.SOLUTIONSThey have a life of their own. They are distinct from problems which they might be called on to solve. Solutions are answers looking for a question. Participants may have ideas for solutions they may be attracted to specific solutions and volunteer to play the advocate. Only trivial solutions do not require advocacy and preparations. Significant solutions have to be prepared without knowledge of the problems they might have to solve.CHOICE OPPORTUNITIESThere are occasions when organizations are expected to produce behavior that can be called a decision. Just like politicians cherish photo opportunities, organization man needs occasional decisio n opportunities for reasons unrelated to the decision itself.PARTICIPANTSThey come and go participation varies between problems and solutions. Participation may vary depending on the other time demands of participants. Participants may have best-loved problems or favorite solutions which they carry around with them.The organizational decision making generally takes on a random quality. When a problem arises a solution can be proposed by the participants. equalise opportunities should be given to all the staffs in an organization.For example, considering my own organizational experience, our organization was suffering from poor training process. Our Manager was welcoming some volunteers to give some good suggestions to improve the process of training process. Thus, I and my colleagues worked on this by gathering information from many sources. We conducted a survey in many big organizations about the training methods that are being followed by them. Then, finally we ended up by givi ng certain logical ideas as well which formed to be the good solution for the training methods. Thus, rational thinking is important for solving any kind of problem in an organization. Equal opportunities were given to all the employees in our organization. Thus, the problem was solved using the kind of Garbage Can Model.PROBLEMSCHOICE OF OPPORTUNITIESMANAGEMENTPARTICIPANTSOLUTIONFig. 1.0 represents the Garbage Can Model of decision-making.Source SelfCARNEGIE MODELThe Carnegie model was formulated by Richard Cyert, James March and Herbert Simon. This helped to formulate the bounded rational approach to individual decision making that can provide new insights about organizational decisions. An organizational decision-making involves coalition choice made by the mangers. It means the relationship among the managers who take decisions about organizational goals and problems. The organizational goals are mostly unstructured and contradictory. The mangers can be rational but function wit h human cognitive limitations.The coalition process has several steps starting with satisfactory decision that can be suggested for the performance to achieve goals. Continued by an immediate environment for resolving a problem can be suggested by some managers. Finally, for identifying the exact problem identification stage of decision making can be done by treatment and bargaining. Coalition forms to be the major part of organizational decision making process. Thus, the solution should be quick, simple and cost-effective.For example, we can consider fire security measures, which help to solve the problem initially by creating an environment suitable for solving the problem. They also get prepared with the pre-requisites needed to solve the problem satisfactorily. This method does not need a discussion or bargaining as the steps are taken immediately once the problem is been observed or indentified.These two models can be used to solve the problem of decision-making in an organiza tion. But certain methodology has to be followed for making a decision successfully. The best method is Systems Intervention Strategy.8.0 SYSTEMS INTERVENTION STRATEGY SISIts a family of systems approaches based on systems ideas. To move from a completely unstructured problem situation to a situation in which viable options can be modeled and comprehensively evaluated before successful implementation, which can be done by SIS. We can integrate SIS into Systems thinkingPersonal masteryKnowledge of mental modelsBuilding shared visionTeam leading There are three overlapping phases of SIS. They are8.1 diagnosisInitially, the problem should be identified and analyzed. This can help to change problems, develop a perspective and spell out the purposes of change. The diagnosis process initially starts with innovation by recognizing the change. This is followed by description process that gives the structure and other views on the change. The objectives and the constraints are identified t hat helps to formulate measures for the objectives.8.2 DESIGNDifferent methods are suggested to solve the problems and new methods are explored. A range of options can be generated and the models can be selected accordingly.8.3 IMPLEMENTATIONThe change can be carried out by developing the maneuver for bringing out the desired change. These options are evaluated against the measures by designing the implementation strategy by carrying through the planned changes.DIAGNOSISIMPLEMENTATIONDESIGNFig. 2.0 represents the three overlapping phases of SIS.Source For example, taking my organizational experience where we had the problem of completing the projects on time. Thus, our manager first recognized the root-cause for delayed project completion. Then the reason was analyzed by getting other employees point of view by arranging for some special meetings to resolve the issue. He also conducted some surveys to get word proper measure for the problem. Logical thinking and rationalistic view can give a right solution for the problem solving in the organization which was done by our manager. Then, the proper measures like giving incentives, improved employee facilitation will be given to the employees who finish their job on-time, were been formulated by him. He also had different options like improving the pantry facilities, parking facilities and other dress-code were been suggested to us. Where we were allowed to choose the best option that can be exhibited completely. Then finally, the results were evaluated and they are implemented. This was then carried out successfully in our organization.9.0 CONCLUSIONAny kind of organizational problems can be solved by rational thinking and strategical planning. This can also be supplemented with certain types of model or theory implementation. Analyzing and identifying the root-cause of the problem helps in clear decision-making. Thus, proper detection of the problem paves way for proper solution for that problem in an organiza tion.