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Effective Decision Making

The document provides information about effective decision making. It discusses types of decisions including personal vs organizational, individual vs group, programmed vs non-programmed, and strategic vs administrative vs routine. It outlines a 7 step process for decision making: identify the problem, gather information, analyze the situation, develop options, evaluate alternatives, select a preferred option, and act on the decision. It also discusses factors that can influence decisions such as time constraints and importance, and challenges to effective decision making.
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0% found this document useful (0 votes)
44 views38 pages

Effective Decision Making

The document provides information about effective decision making. It discusses types of decisions including personal vs organizational, individual vs group, programmed vs non-programmed, and strategic vs administrative vs routine. It outlines a 7 step process for decision making: identify the problem, gather information, analyze the situation, develop options, evaluate alternatives, select a preferred option, and act on the decision. It also discusses factors that can influence decisions such as time constraints and importance, and challenges to effective decision making.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Effective

Decision Making
Session starts at 2pm
HELLO!
I am Karen Maher

I am an experienced HR consultant and workforce


development specialist originally from the North East
of England.

I specialise in coaching, mentoring, mediation and


training delivery. I deliver QQI accredited courses
including People Management, Supervisory
Management and Medical Secretaries

I am also qualified to administer and deliver


psychometric tests including EQi2 (Emotional
Intelligence) and MBTI (Personality Types).
Overview

Applying a robust decision-making process


Types of decisions
Steps to making decisions
Factors effecting decisions
Challenges of making a good decision
Group decision making
Problem solving
Communicating the decision
Assessing decisions made
Decision Making

Decision making is the process


of making choices by gathering
information and assessing alternative
resolutions.

Using a step-by-step decision-


making process can help you make more
deliberate, thoughtful decisions by
organising relevant information and
defining alternatives.
Decision Making

What kind of decisions do


you make everyday?

How do you arrive at those


decisions?
Types of Decisions

1. Personal and Organisational Decisions

Decisions to watch television, to study are examples of


personal decisions. They affect the organisation in an
indirect way. Personal decisions cannot be delegated
and have a limited impact.

Organisational decisions are made in an official


capacity. They are aimed at furthering the interests of
the organisation and can be delegated. While trying to
deliver value to the organisation, employees and
managers are expected to keep the interests of all
stakeholders also in mind. They need to take decisions
carefully so that all stakeholders benefit by what they
do
Types of Decisions
2. Individual and Group Decisions

Individual decisions are taken by a single individual.


They are mostly routine decisions.

Group decisions, on the other hand are decisions


taken by a group of individuals formed for a particular
purpose.

Group decisions, compared to individual decisions,


have far reaching consequences and impact a
number of persons and departments. They require
serious discussion, deliberation and debate.

What are the advantages and disadvantages of


group decision making?
Advantages
A group has more information than an individual. Members,
drawn from diverse fields, can provide more information and
knowledge about the problem.

A group can generate a greater number of alternatives. It can


bring to bear a wider experience, a greater variety of opinions and
more thorough probing of facts than a single individual.

Participation in group decisions increases acceptance and


commitment on the part of people who now see the solution as
their own.

People understand the decision better because they saw and


heard it develop.

Interaction between individuals with varied viewpoints leads to


greater creativity.
Disadvantages

Groups are notorious time-wasters. They may waste a lot of


time and energy getting organised.

Groups create pressures towards conformity; group think, force


members to compromise.

Presence of some group members, who are powerful and


influential may intimidate and prevent other members from
participating freely.

It may be costly to secure participation from several individuals


in the decision-making process.

The group consists of severed individuals and hence, it is easy to


avoid responsibility.
Types of Decisions
3. Programmed and Non-Programmed Decisions

A programmed decision is routine and repetitive. Rules and


policies are established in advance to solve recurring problems
quickly. For example a hospital establishes a procedure for
admitting new patients.

Programmed decisions leave no room for discretion. They have


to be followed in a certain way.

Non-programmed decisions deal with unusual problems. Such


problems crop up suddenly and there is no established
procedure or formula to resolve them. For examples deciding
whether to take over a unit, or restructure an organisation to
improve efficiency, or where to relocate. Managers need to be
creative when solving the infrequent problem and have to be
treated differently each time they occur.
Types of Decisions

4. Strategic, Administrative and Routine Decisions

Strategic decision-making is usually a senior management


responsibility. They are key, future-focused decisions affecting
many parts of an organisation.

Administrative decisions deal with operational issues—dealing


with how to get various aspects of strategic decisions
implemented smoothly at various levels in an organisation.

Routine decisions are repetitive in nature. They require little


deliberation and are generally concerned with short-term
commitments.
7 Steps to making a
decision
1 Identify a problem or opportunity

2 Gather information

3 Analyse the situation

4 Develop options

5 Evaluate alternatives

6 Select a preferred alternative

7 Act on the decision


Steps to making a decision
1 Identify a problem or opportunity

The first step is to recognise a problem or to see opportunities that


may be worthwhile.
Will it really make a difference to our customers?
How worthwhile will it be to solve this problem or realise this
opportunity?

2 Gather information

What is relevant and what is not relevant to the decision?


What do you need to know before you can make a decision, or that
will help you make the right one?
Who knows, who can help, who has the power and influence to make
this happen (or to stop it)?
Steps to making a decision
3 Analyse the situation

What alternative courses of action may be available to you?


What different interpretations of the data may be possible?

4 Develop options

Generate several possible options.


Be creative and positive.
Ask “what if” questions.
How would you like your situation to be?

5 Evaluate alternatives

What criteria should you use to evaluate?


Evaluate for feasibility, acceptability and desirability.
Which alternative will best achieve your objectives?
Steps to making a decision

6 Select a preferred alternative (Scenario planning)

Explore the provisional preferred alternative for future possible adverse consequences.
What problems might it create?
What are the risks of making this decision?

7 Act on the decision

Put a plan in place to implement the decision.


Have you allocated resources to implement?
Is the decision accepted and supported by colleagues?
Are they committed to making the decision work?
Barriers

What barriers do you


encounter when
trying to make
decisions?
Factors effecting decisions

Time
How quickly do you need a decision?
Sometimes the faster a decision is required, the more
people move towards a ‘do as I say’ approach.

Importance
What's at stake?
It is a different decision making process when it’s a
crucial business decision than when you're making a
minor choice. A good starting point is using a
participatory style, gaining broad input, feedback, and
perspective. it's important to let your team drive the
process and make the decision. It gives them the
experience-and the confidence-to tackle more difficult
decisions in the future.
Factors effecting decisions

Buy-in
How important is buy-in from your team for success?
The more you require your team to take ownership the more
relevant a participatory approach will be. If buy-in is not
critical and the decision is clear cut, then a direct style may
work .

Conflict
How controversial is the decision?
You may need to make tough choices, especially those that are
not often popular, obvious or unanimous. The more conflict
around a decision, the more critical it is to start with a
participatory style. This allows you to hear everyone's view
before moving forward through any conflict.
Decision Making

Concession Consensus
Giving way Effective decisions
Sacrificing the quality of the Genuine agreement
decision making in the Seeing and seeking others point
interests of group cohesion of view

Compromise Coercion
Meeting others Bull-dozing
Trading off Forcing own opinions through
Avoidance of real issues Domination by loudest
Poor decisions which satisfy members
nobody fully Quieter members inhibited
Challenges of Making a Decision

Information overload. Having a lot of information is often viewed as


beneficial, but if that information is not collated properly or only available via
a multitude of methods, processing it all can become overwhelming.

Not having enough information. Not having enough information to support


your decision is not good either; and you should be up to speed with all the
relevant information in order to come up with the best solution.

Misidentifying the problem. There will be times when the decision is complex
and you aren’t sure where the main issue lies, as the actual cause may be
elusive. Being able to conduct thorough research, receive useful data and
speak with internal experts could help.
Challenges of Making a Decision

Overconfidence in the outcome. You should identify realistic, viable, achievable


options rather than ones that are overly optimistic and unrealistic.

Impulsiveness. If decisions are taken too quickly you might inadvertently miss
important data or forget about the impact of some action on the team.

Opinions and objectivity. It is natural to involve other people in the decision-


making process, but you need to avoid falling for the halo or horns affect.

Review. If you make a decision, you will have to review and evaluate it to
understand if it has really been the correct one
Challenges of Making a Decision

Improving your Judgement

• Be aware of your biases


https://implicit.harvard.edu/implicit/takeatest.html

• Review all the evidence

• Consider if you have observed evidence for each conclusion

• Debate if you have contradictory evidence

• Assess if you are using the competency standard for the judgement or
your internal standard

• Consider if you have allowed your feelings to sway your judgment


Problem Solving

Step 1 Evaluate the problem

Step 2 Manage the problem

Step 3 Make decisions

Step 4 Resolve problems

Step 5 Review the results


1. Evaluate the problem

Clarify the nature of a problem


Formulate questions
Gather information systematically
Collate and organise data
Condense and summarise information
Define the desired objective
2. Manage the problem

Use the information gathered effectively


Break down a problem into smaller, more manageable, parts
Use techniques such as brainstorming and lateral thinking to consider options
Analyse these options in greater depth
Identify steps that can be taken to achieve the objective
3. Make decisions

Decide between the possible options for what action to


take

Decide on further information to be gathered before taking


action

Decide on resources (time, funding, staff etc.) to be


allocated to this problem
4. Resolve the problem

Implement action

Provide information to other stakeholders; delegating


tasks

Review progress
5. Review the results

Monitoring the outcome of the action taken

Reviewing the problem and problem-solving


process to avoid similar situations in future
Identifying a problem
– Some tools

• The Five Whys


• Mind Mapping
• Brainstorming
• Fishbone diagram
• Critical Path Analysis
Identifying a problem
– Some tools
Communicating the decision

Transparency of information creates trust,


which is important and vital when change
is being made.

Decisions made behind closed doors are


always suspect. Therefore, after the
decision is made, you need to
communicate it.

How you communicate the decision is


everything.
Communicating the decision

When you communicate your decision, include the following:

The reason the decision was necessary: Include a brief summary of


the opportunity or issue the decision and action plan address.
Explain the “why.”

The final decision: Straightforward – tell them the decision

The implications: What the decision means to both your customers


and your stakeholders. Address how the solutions will help and
discuss the changes that these groups would probably see as losses.

What will happen next and what you need them to do to support
the decision: Feedback and feed-forward information allows for
adjusting to change.
Assessing Decisions Made

Once you have made your final decision and put it into action, it is necessary to
evaluate the decision and the steps you have taken to ensure that it works.

This final step is probably just as important as step one, if not more important,
because it will help you to further develop your decision making skills for future
problems.

This step is also fundamental because it may require you to seek out new
information and make some changes along the way.

Remember, this step requires some patience and it can also encourage
perseverance. Why? Because it may take some time to see the final outcome.
Recognising that if the first decision is not working, you may have to go back to step
two and choose another option
Summary

Applying a robust decision-making process


Types of decisions
Steps to making decisions
Factors effecting decisions
Challenges of making a good decision
Group decision making
Problem solving
Communicating the decision
Assessing decisions made
Summary & Recap
Q&A
GOOD BYE &
GOOD LUCK!
THANKS!
Any questions?
You can find me at
[email protected]

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