DECISION MAKING SKILLS
29th BAT , 2071
Tarak Bahadur KC, PhD, NASC
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Session Outline
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Meaning of Decision / Decision Making
Approaches / Styles and Process of Decision
Making
Bases / Methods / Characteristics of Decision
Making in Nepal
Issues / Challenges / Problems in Decision
Making
Approaches to Improving Decision Making
Ability
Ethics and Morality in Decision Making
Tips for Effective Decision Making
Importance of Decision Making
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A key role of an officer
 Whatever an officer does, he does through
making decisions
 No organisations can be run without making
decisions
 Carries long-term implications. Organisations
grow or fail as a result of decisions made by
its decision makers.
 The wellbeing of an organisation depends
almost entirely on the quality of its decisions.
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Decision
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“A Decision is a Judgment.”
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Peter Drucker
A decision is a Choice between
or among various alternatives.
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Classification of Decisions
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1.
2.
Personal decisions to achieve own objectives.
Organisational decisions to fulfill the obligations
of own position in the organisation.
1. Programmed – usually made at lower level and
are usually routine in nature. Made on the basis of
pre-established rules / procedures.
2. Non-programmed – established rules /
procedures are inadequate to deal with the new
kinds of situations, and the decision maker has to
be innovative. The risks involved are high.
Decisions made about non-recurring problems for
which there are no pre-specified courses of action.
Decision Making
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… is the selection of one behaviour alternative
from two or more possible alternatives in relation
to a problem / situation. – Terry
… is the process of examining possible options,
comparing them and choosing a course of action.
… is the study of identifying and choosing
alternatives based on the values and preferences
of the decision-maker. When we make a
decision, we want to choose the one/s that fit us
best.
Approaches to Decision Making
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The Authoritarian Approach. Deciding
independently seeking no contributions other than
asking for necessary information and passing them
down the line for implementation. Officers assume the
authority to take decisions alone and to pass them
down the line for implementation.
 The Democratic Approach. Jointly, as a team,
making a decision which has the support of the whole
group. The responsibility for decision making is
shared between the officer and members of a team.
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Range of Decision Making Styles
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Authoritarian Style  The officer makes decisions and announces
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Democratic Style
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them
The officer sells the decision to the team
The officer presents the idea and invites
questions
The officer presents a tentative decision
subject to change
The officer presents a problem, gets inputs
from the team and then decides
The officer defines the limits and asks the
group to make the decision
The officer permits the team to make
decisions with predefined limits
The officer allows team members complete
freedom of action
Approaches/Styles to Decision Making
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No one style appropriate for all situations.
Occasions when one style rather than any other is
more likely to produce better quality decisions
implemented with greater success.
Each style has a probability of getting results
depending on the maturity of followers and the
situation.
Need to adopt a flexible approach by varying
style in response to the nature of the decision and
the context in which it is made and ultimately
implemented.
Decision Making Process
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Rational Decision Making Process
Evaluate Alternatives
Develop Alternatives
Identify/Define Problems
Sense Effects
Choose the Best Alternative
Implement the Decision
Monitor the Implementation
I Diagnose Problem/ Define the Objective
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"A problem properly defined is a problem half solved.“
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Define the problem
Identify the decision objectives (what will happen
when the problem has been solved)
Identify the causes of problem
To whom is it a problem?
What kind of problem is it (attitude,
understanding, competence, …)?
Has this ever happened before?
What is the potential magnitude of the problem, if
it remains unresolved?
II Develop Alternatives to Solve the Problem
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This is a brainstorming step to generate
alternatives, not to evaluate them. Brainstorming
suggests a range of possible solutions. Listing
options (Thinking creatively) - the alternatives to
reach Pokhara?
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Nobody says
Nobody says
Nobody says
Nobody says
“no”
“That will never work”
“That has already been tried …”
“That is a stupid idea"
III
Evaluate Alternatives
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Realistic to Organisation Goals
 Helpful to Solve the Problem
 Timing
 Resources
 Acceptability
 Feasibility
 Risk
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IV Choose the Best Alternatives
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Solution should be satisfactory rather than ideal.
There are four criteria for choosing the best from
among the possible solutions:
1. The risk - weigh the risks of each course of action
against the expected gains.
2. Economy of effort - which will give the greatest
results with the least effort?
3. Timing- situation in the organisation.
4. Limitations of resources - vision, competence,
skill, etc. of staff who carryout decisions. Do we
have resources to carryout decisions?
V
Implement the Decision
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Putting a chosen solution into effect requires
a carefully drawn-up action plan.
SN
Activities /
Actions
Critical
Required
By
Whom When Resource (s) Success
Factor (s)
VI Monitor the Decision
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Set dates for monitoring. Who will monitor?
How and when?
Is the solution effective?
Are we still satisfied? Are there parts that
need reworking? In the light of new data
received, do we need to make any changes?
Has there been any permanent
improvement?
Are we learning from experience?
What new problems have we identified?
Bases of Decision Making (Nepal)
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Constitution
Acts, Rules, Policies
Court / Executive order
Budgetary instruments
Administrative procedures
International conventions, declarations and
commitments
Treaties/ MOUs with international communities
/ agencies
Parliamentary directives
CIAA / NVC directions, etc.
Methods (Nepal)
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Tippani
 Cabinet Proposal
 Minutes (Meeting / Committee)
 Tok-aadesh
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Characteristics (Nepal)
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"Manasaya"
"Bholi" - never comes. Passing to others (above) /
avoidance
Afno manchhe- nepotism, favouritism / (exclusion)
Patchwork/ 11th hour
Ad-hoc
Populist
Survival (individualistic)
Pressure – individual / group
Centralized- dominated by power centers
Delegated matters forwarded to delegator
Ignorance to institutional interest
Issues / Challenges
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Implementability
Ownership of decision
Decisiveness of decision maker
Ethics and integrity of decision maker
Failing to consult others
Globalization effects
PEST
Innovation / creativity?
Problems in Decision Making
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Real life Decision Makers must cope with:
Inadequate information about the nature of the
problem and its possible solutions,
 The lack of resources to acquire more complete
information,
 Distorted
perceptions of the information
available,
 The inability of the human memory to retain
large amount of information, and
 The limits of their own intelligence to determine
correctly which alternative is best. - Herbert Simon
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Problems in Decision Making
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Which problem to solve?
What is a right decision?
External and internal environment
Individual's
values,
capabilities,
biasness / prejudice, experience
Influencing factors
Conflicting information
For some “thinking” is not “work”
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1.
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Basic Approaches to Improve
Decision Making Ability
Improve analytical ability
Adopt systematic approach
Invite conflicting views
Consider factors influencing
decision making
Use imagination / Be creative
Implementation and follow-up
1. Improve Analytical Ability
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Opinions are perfectly good starting
point. Ask questions starting with:
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What,
Why,
When,
How,
Where, and
Who.
2. Adopt Systematic Approach
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Analyse the situation
Identify possible courses of
action
Weigh them up
Decide what to do
3. Invite Conflicting Views
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One should not expect a
bland consensus view
The best decisions emerge
from a clash of conflicting
points of view
4. Consider Factors Influencing
Decision Making
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Availability of resources
Environment- internal / external (PEST)
Capability, values, experience of concerned
people
Knowledge
Biasness / prejudice / interest
Customs and habits of people
Psychological factors- emotion, ethics, values…
Future as anticipated
Superiors and subordinates
5. Use Imagination
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Use 'lateral thinking' and 'brain-storming'.
You can develop your ability to think
creatively by:
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Breaking away from any restrictions
Opening up your mind to generate
new ideas
Delaying judgment until you have
thoroughly explored the alternative
ideas (for example, 'It won't work', 'It won't solve
the problem')
6. Implementation and Follow-up
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A problem is not solved until the
decision is implemented. Think
carefully not only about how a thing
is to be done (who, what, when) but
also about its impact on the people
concerned and the extent to which
they will co-operate.
Ethics and Morality in Decision
Making
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Ethics: moral beliefs and rules about right
and wrong.
The branch of philosophy that defines
what is good for the individual and
society,
Making ethical decisions in business is
often difficult because business ethics is
not just an extension of either an
individual ’s or a society’s ethics. However,
the following support being ethical:
Ethics ….
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Trustworthiness
Respect
Responsibility
Fairness
Caring
Citizenship
Some Tips for Effective Decision
Making
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It is not choice between right or wrong, rather
choosing from among alternatives
What is right, not who is right
Consider those affected by the decision (involve if
feasible)
Mentally rehearse implementation of your choice
View a ‘problem’ as an ‘opportunity’
Decision must meet the situation, and be acceptable
to as large number of people as possible
Choosing the right alternative at the wrong time is
not any better than the wrong alternative at the right
time, so make the decision while still have time
Conclusion
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Decision must meet the situation, and be
acceptable to as large number of people as
possible. Effective decision making requires
creativity. Creative thinking is hindered by
perceptual blocks, emotional blocks and
cultural / environmental blocks. Therefore,
first thing is to overcome from the blocks and
be creative in different course of action, likely
causes, possible solutions, and a variety of
outcomes.
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“Think Laterally,
and be Creative.”
Good luck
III. Criteria for Evaluation /
Decision Criteria
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Options
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2
3
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A
B
C
D
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CONTRIBUTION- To solve problem
MONEY- Cost to implement
HR- Needed to implement the action
COMMITMENT: Committed suitable people to action
RESISTANCE- Expected resistance from stakeholders
PROBLEMS- Other problems by the decision
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III. Criteria for Evaluation /
Decision Criteria
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Positive
Self
Others
Negative