1. 33rd BAT, Module I: Organization Behavior
2075/8/14
Basanta Raj Sigdel/ Anita Poudel

2. Journey of life…

3. Life is all about choices…
Some are easy ……
Some are difficult
Organizational_ Social Unit

4. Decision Making Decision Making – a way of life
Individual
Organizational
Role of a decision maker is different in
Objective or desired result
Situation/Context
Time
Organizational_ Social Unit

5. Manager: A decision maker
As a Manager, you will manage:
Resources
Relationship
Results

6. Core Competencies of a Manager
Delivering Results
Managing Relationship
Managing Resources
Performing Manager
Building Integrity

7. Decision Making- Essence of Managerial Function
Planning
Organizing
Leading
Controlling

8. “A Decision is a Judgment.”
Peter Drucker
INTUITION (Gut Feeling – past experience and personal values)
REASONING (Facts and Figures)
A decision is a Choice between or among various alternatives.

10. Illuminating the Nation !

11. What good decision makers do? - HBR
They are very clear about the end goal;
They think in terms of options or alternatives, often out of box;
They seek diverse inputs and look from different angles

12. Decision Making Tools Problem Restatement technique
SWOT analysis/ PEST analysis / Stakeholder analysis
Brainstorming/ Delphi Technique / Nominal Group Technique
Cause and effect
Cost benefit analysis
Six Thinking Hats
 Problem Restatement Technique  Broaden our perspective of a problem, not to solve it  Help us identify the central issues & alternative solutions  Increase the chance that the outcome our analysis produces will fully, not partially, resolve the problem Decision Making Tools
50. II- SWOT Analysis: 1- Strength 2- Weaknesses 3- Opportunities 4- Threats Decision Making Tools
51. III- Pareto Principle: 80% of unfocussed effort generates only 20% of results. The remaining 80% of results are achieved with only 20% of the effort. Decision Making Tools
52. Decision Making Tools Individual Brainstorming: 1. Tends to develop fewer ideas, but takes each idea further 2. Can be risky for individuals. Valuable but strange suggestions may appear stupid at first sight. Group Brainstorming: 1. It is best for generating many ideas, but can be time consuming 2. Needs formal rules for it to work smoothly( Disagreements) 3. Group brainstorming sessions are usually enjoyable experiences, which are great for creating cohesion in a team IV- Brainstorming: No criticism of ideas, free rein is given to creativity
53. Decision Making Tools V- Cause& Effect VI- Porter’s 5 Forces:
54. VII- Cost Benefit Analysis: Cost/benefit analysis – evaluating quantitatively whether to follow a course of action. Add up the value of the benefits of a course of action and subtract the costs associated with it. Decision Making Tools
55. VII- Six Thinking Hats- Tools/ Framework Creative Positive Objective Feelings Negative Process Avoid confusion Parallel Thinking = cooperation

13. Six Thinking Hats

15. A Scenario
Budget of Rs. 1 Million has been provisioned in the Rubi Valley Gaunpalika where you are working as Chief Administrative Officer. Different wards have demand of the amount for different needs- capacity building of women, park for senior citizens and additional educational programmes for the children of deprived groups and sports facilities for the youths.

16. A Scenario
You are required to take a decision to allot the amount to ONE of the potential programme. Use six thinking hat tool to reach the decision.
(Time 30 Minutes)

17. Six Cs of Decision making
Construct: A clear picture of precisely what must be decided
Compile: A list of requirements that must be met
Collect: Information on alternatives that meet the requirements

18. Six Cs of Decision making
Compare: Alternatives that meet the requirements
Consider: The “what might go wrong” factor with each alternative
Commit: To a decision and follow through with it.

19. Factors affecting decision making
Nature of decision (programmed or non- programmed)
Personal (values, habits, objectives and cognitive constraints)
Psychological (motivation, selective biases)
Attitude toward risk and uncertainty
Social and Cultural
Information inputs

20. “Maybe pushing on that wall to the left will give some space.”
System thinking is crucial
“Maybe pushing on that wall to the left will give some space.”

21. “Oops!”

22. Let’s remember Decision making is a way of life
Multiple realities prevails in decision making. We should take them in perspective.
Success of an organization depends on the quality of its decisions
System thinking is crucial for making decisions
Decisions should be reviewed and learning should be put in practice
Decision with INTEGRITY is a must
rational: information based; limited information resulted in bounded rationality

23. Concluding Thought
“ I am not a product of my circumstances, I am a product of my Decisions” – Stephen Covey

24. THANK YOU