1. Principles of
Management
Learning Session # 17
Dr. A. Rashid Kausar

2. Re-cap of
Session # 16

3. Managerial Decision Making in POLCA
In fact Decision Making is synonymous with Managing.
Let us see kind of decisions in POLCA !

4. Planning: Organizaing: Leading: Controlling:
1.What are the organization’s long-term objectives?
2.What strategies will best achieve those objectives?
3.What should the organization’s short-term objectives be?
4.How difficult should individual goals be?
Organizaing:
1.How many employees should I have report directly to me?
2.How should jobs be designed?
3.When should an organization implement a different structure?
Leading:
1.How do I handle employees who appear to be low in motivation?
2.What is the most effective leadership style in a given situation?
3.How different work groups can work like teams?
Controlling:
1.What type of management information system should we have?
2.What activities in the organization need to be controlled?
3.How will a specific change affect worker productivity?
What is the guarentee that my decision making when implemented will prvide the desired results? ( ASSURANCE)

5. Nature of Managerial Decision Making
Decision Making Situations:
1.Programmed decisions
Routine, repetitive, well- structured situations by use of pre-determined decision rules.

6. Managerial Decision Making
Types of Problems and Decisions
Well-Structured Problems straightforward, familiar, and easily defined

7. Managerial Decision Making
Programmed Decisions used to address structured problems
1.Minimize the need for managers to use discretion
2.Facilitate organizational efficiency

8. Programmed Decisions
1.Deciding if student meet graduation requirements.
2. Determine skilled worker’s daily wage.
3. Hospital laboratory charges for blood sugar test.
4. Customer wanting to return a purchased product.
5.To re-order kitchen supplies in a restaurant

9. Nature of Managerial Decision Making
2.Non-programmed Decision Making
Pre-determined decision rules are impractical, due to novel and/or ill- structured situations.

10. Managerial Decision Making
Types of Problems and Decisions
Poorly-Structured Problems - new, unusual problems for which information is ambiguous or incomplete

11. Managerial Decision Making
Non-Programmed Decisions used to address poorly- structured problems
1. Produce a custom-made response
2. more frequent among higher-level managers
Few decisions in the real world are fully programmed or non-!

12. Non-Programmed Decisions
1.Selection of an architect to design a new manufacturing plant.
2.To invest or not in a new technology?
3.To shut down or invest in a money-losing division?
4. To switch from one academic discipline to another discipline for better growth?

13. Types Of Problems, Types Of Decisions, & Level In The Organization
Top
Lower
Well-Structured
Ill-Structured
Type of
Problem
Non-programmed
Decisions
Programmed
Decisions

14. Nature of Managerial Decision Making
3.The Element of Risk
Possibility that a chosen decision could lead to losses rather than intended results.

15. Managers as Decision Makers
Models of Managerial Decision Making:
1.Rational Model

16. Rational Decision-Making Model
3. Search for Alternative Solutions
4. Compare and Evaluate Alternative Solutions
1. Define the Issue
2. Set Goals
External and Internal Environment Forces
7. Follow up and Control
6. Implement the Solution Selected
5. Choose among Alternative Solutions

17. Managers as Decision Makers
2.Non-Rational Models
Models suggesting info gathering and processing limitations make it difficult for managers to make optimal decisions.