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    This document discusses decision making and decentralization. It defines decision making as the process of selecting a course of action from various alternatives. It outlines several techniques and stages of decision making. Decentralization is defined as delegating authority to lower levels. The goals of decentralization include giving autonomy to locations and adapting to local conditions. The document discusses the advantages, like relieving top management and gaining experience, and disadvantages, like lack of coordination, of decentralization.

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    DECISION MAKING, DECENTRALIZATION

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    This document discusses decision making and decentralization. It defines decision making as the process of selecting a course of action from various alternatives. It outlines several techniques and stages of decision making. Decentralization is defined as delegating authority to lower levels. The goals of decentralization include giving autonomy to locations and adapting to local conditions. The document discusses the advantages, like relieving top management and gaining experience, and disadvantages, like lack of coordination, of decentralization.

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    39 views19 pages

    Decision Making, Decentralization

    Uploaded by

    harpreet
    This document discusses decision making and decentralization. It defines decision making as the process of selecting a course of action from various alternatives. It outlines several techniques and stages of decision making. Decentralization is defined as delegating authority to lower levels. The goals of decentralization include giving autonomy to locations and adapting to local conditions. The document discusses the advantages, like relieving top management and gaining experience, and disadvantages, like lack of coordination, of decentralization.

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    of 19

    DECISION MAKING,

    DECENTRALIZATION
     DECISION MAKING
    DEFINITION
    • Decision making can be regarded as the mental
    processes resulting in the selection of a course of
    action among several alternative scenarios.

    • Decision making is thought process of selecting a


    logical choice from the available options.

    • Decision making is the process of making a


    choice between a number of options and
    committing to a future course of actions.
    Problem Analysis
    vs
    Decision Making
    TECHNIQUES OF DECISION MAKING

    • PROS AND CONS

    • SIMPLE PRIORITIZATION

    • SATISFYING

    • EXPERTS ORDERS

    • FLIPISM

    • OPPOSITE ACTION TO THE ADVICE OF MISTRUSTED


    AUTHORITIES
    DECISION MAKING STAGES

    • Orientation stage- This phase is where members


    meet for the first time and start to get to know each
    other.
    • Conflict stage- Once group members become
    familiar with each other, disputes, little fights and
    arguments occur. Group members eventually work it
    out.
    • Emergence stage- The group begins to clear up
    vague opinions by talking about them.
    • Reinforcement stage- Members finally make a
    decision, while justifying themselves that it was the
    right decision.
    DECISION MAKING STEPS

    The first step - Outline your goal and outcome.


    This will enable decision makers to see exactly
    what they are trying to accomplish and keep
    them on a specific path.
    The second step - Gather data. This will help
    decision makers have actual evidence to help
    them come up with a solution.
    The third step - Brainstorm to develop
    alternatives. Coming up with more than one
    solution able you to see which one can actually
    work.
    CONT….
    The fourth step - List pros and cons of each
    alternative. With the list of pros and cons, you can
    eliminate the solutions that have more cons than
    pros, making your decision easier.
    The fifth step - Make the decision. Once you analyze
    each solution, you should pick the one that has many
    pros, and is a solution that everyone can agree with.
    The sixth step - Immediately take action. Once the
    decision is picked, you should implement it right
    away.
    The seventh step - Learn from, and reflect on the
    decision making. Do the evaluation of the decision.
    TYPES OF DECISION

    • ROUTINE AND STRATEGIC DECISION


    • STRATEGIC DECISION
    • PROGRAMMED AND NON- PROGRAMMED
    DECISION
    • POLICY AND OPERATING DECISIONS
    • MAJOR OR MINOR DECISIONS
    • ORGANISED AND PERSONAL DECISIONS
    • INDIVIDUAL AND GROUP DECISIONS
    DECENTRALIZATION
    DEFINITION

    • "A decentralized system is one which requires


    multiple parties to make their own independent
    decisions“

    • According to Allen, Decentralization refers to the


    systematic effort to delegate to the lowest level of
    authority except that which can be controlled and
    exercised at central points.
    GOAL OF DECENTRALIZATION

    • The primary goal of decentralized is


    to give autonomy to different
    locations, allowing them to adapt to
    the specific working climate of the
    individual site.
    PRINCIPLE OF DECENTRALIZATION
    • Problem-Solving
    • Motivation
    • Experience Counts
    • Involvement
    • Be Realistic
    • Balance
    • Access
    • No Pressure
    TYPES OF DECENTRALIZATION
    • POLITICAL DECENTRALIZATION

    • ADMINISTRATIVE DECENTRALIZATION

    • FISCAL DECETRALIZATION

    • ECNOMIC AND MARKET DECENTRALIZATION


    ADVANTAGES OF DECENTRALIZATION

    • Top management is relieved of much day-to-day problem


    solving and is left free to concentrate on strategy, on
    higher level decision making, and coordinating activities.
    • Decentralization provides lower level managers with vital
    experience in making decisions. Without such
    experience, they would be ill-prepared to make decisions
    when they are promoted into higher level positions.
    • Added responsibility and decision making authority often
    result in increased job satisfaction. Responsibility and the
    authority, that goes with it makes the job more
    interesting and provides greater incentives for people to
    put out their best efforts.
    Cont…..
    • Lower level managers generally have more
    detailed and up to date information about
    local conditions than top managers. Therefore
    the decisions of lower level management are
    often based on better information.
    DISADVANTAGES OF DECENTRALIZATION

    • Lower level managers may make decisions


    without fully understanding the "big picture."
    • In a truly decentralized organization, there may
    be a lack of coordination among autonomous
    managers. This problem can be reduced by clearly
    defining the company's strategy and
    communicating it effectively throughout the
    organization.
    Cont…..
    • Lower-level managers may have objectives that
    are different from the objectives of the entire
    organization. For example, some managers may
    be more interested in increasing the sizes of their
    departments than in increasing the profits of the
    company.
    • In a strongly decentralized organization, it may be
    more difficult to effectively spread innovative
    ideas.
    THANX

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