Reality of Decision making

Reality of Decision making

From Wikipedia, the free encyclopedia

Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice.^[1] The output can be an action or an opinion of choice.

Overview

Human performance in decision terms has been the subject of active research from several perspectives. From a psychological perspective, it is necessary to examine individual decisions in the context of a set of needs, preferences an individual has and values they seek. From a cognitive perspective, the decision making process must be regarded as a continuous process integrated in the interaction with the environment. From a normative perspective, the analysis of individual decisions is concerned with the logic of decision making and rationality and the invariant choice it leads to.^[2]

Yet, at another level, it might be regarded as a problem solving activity which is terminated when a satisfactory solution is reached. Therefore, decision making is a reasoning or emotional process which can be rational or irrational, can be based on explicit assumptions or tacit assumptions.

One must keep in mind that most decisions are made unconsciously. Jim Nightingale, Author of Think Smart-Act Smart, states that "we simply decide without thinking much about the decision process." In a controlled environment, such as a classroom, instructors encourage students to weigh pros and cons before making a decision. However in the real world, most of our decisions are made unconsciously in our mind because frankly, it would take too much time to sit down and list the pros and cons of each decision we must make on a daily basis.

Logical decision making is an important part of all science-based professions, where specialists apply their knowledge in a given area to making informed decisions. For example, medical decision making often involves making a diagnosis and selecting an appropriate treatment. Some research using naturalistic methods shows, however, that in situations with higher time pressure, higher stakes, or increased ambiguities, experts use intuitive decision making rather than structured approaches, following a recognition primed decision approach to fit a set of indicators into the expert's experience and immediately arrive at a satisfactory course of action without weighing alternatives. Recent robust decision efforts have formally integrated uncertainty into the decision making process. However, Decision Analysis, recognized and included uncertainties with a structured and rationally justifiable method of decision making since its conception in 1964.

A major part of decision making involves the analysis of a finite set of alternatives described in terms of some evaluative criteria. These criteria may be benefit or cost in nature. Then the problem might be to rank these alternatives in terms of how attractive they are to the decision maker(s) when all the criteria are considered simultaneously. Another goal might be to just find the best alternative or to determine the relative total priority of each alternative (for instance, if alternatives represent projects competing for funds) when all the criteria are considered simultaneously. Solving such problems is the focus of multi-criteria decision analysis (MCDA) also known as multi-criteria decision making (MCDM). This area of decision making, although it is very old and has attracted the interest of many researchers and practitioners, is still highly debated as there are many MCDA / MCDM methods which may yield very different results when they are applied on exactly the same data.^[3] This leads to the formulation of a decision making paradox.

Problem Analysis vs Decision Making

It is important to differentiate between problem analysis and decision making. The concepts are completely separate from one another. Problem analysis must be done first, then the information gathered in that process may be used towards decision making.^[4]

Problem Analysis

• Analyze performance, what should the results be against what they actually are
• Problems are merely deviations from performance standards
• Problem must be precisely identified and described
• Problems are caused by some change from a distinctive feature
• Something can always be used to distinguish between what has and hasn't been effected by a cause
• Causes to problems can be deducted from relevant changes found in analyzing the problem
• Most likely cause to a problem is the one that exactly explains all the facts

Decision Making

• Objectives must first be established
• Objectives must be classified and placed in order of importance
• Alternative actions must be developed
• The alternative must be evaluated against all the objectives
• The alternative that is able to achieve all the objectives is the tentative decision
• The tentative decision is evaluated for more possible consequences
• The decisive actions are taken, and additional actions are taken to prevent any adverse consequences from becoming problems and starting both systems (problem analysis and decision making) all over again
• There are steps that are generally followed that result in a decision model that can be used to determine an optimal production plan.^[5]
• In a situation featuring conflict, role-playing is helpful for predicting decisions to be made by involved parties.^[6]

Decision Planning

Making a decision without planning is fairly common, but does not often end well. Planning allows for decisions to be made comfortably and in a smart way. Planning makes decision making a lot more simpler than it is. Decision will get four benefits out of planning: 1. Planning give chance to the establishment of independent goals. It is a conscious and directed series of choices. 2. Planning provides a standard of measurement. It is is a measurement of whether you are going towards or further away from your goal. 3. Planning converts values to action. You think twice about the plan and decide what will help advance your plan best. 4. Planning allows to limited resources to be committed in an orderly way. Always govern the use of what is limited to you (e.g money, time, etc..) ^[7]

Everyday techniques

Some of the decision making techniques people use in everyday life include:

• Pros and Cons: Listing the advantages and disadvantages of each option, popularized by Plato and Benjamin Franklin. Contrast the costs and benefits of all alternatives. Also called Rational decision making.
• Simple Prioritization: Choosing the alternative with the highest probability-weighted utility for each alternative (see Decision Analysis)
• Satisficing: Examine alternatives only until an acceptable one is found.
• Acquiesce to a person in authority or an "expert", just following orders
• Flipism: Flipping a coin, cutting a deck of playing cards, and other random or coincidence methods
• Prayer, tarot cards, astrology, augurs, revelation, or other forms of divination
• Taking the most opposite action compared to the advice of mistrusted authorities (parents, police officers, partners ...)
• Opportunity cost: calculating the opportunity cost of each options and decide the decision.
• Bureaucratic: Set up criteria for automated decisions.
• Political: Negotiate choices among interest groups.

Source  : http://en.wikipedia.org/wiki/Decision_making

Conclusion          : Reality Decision Making describes a path capacity builders

can take to help their clients in tough times. We chose this name because in

tough times people tend to react emotionally and are more likely to avoid hard

decisions, to ignore inconvenient facts, and to base their actions on unrealistic

projections. The resulting decisions can convert a bad situation into a crisis.

STEPS IN THE DECISIONS PROCESS

STEPS IN THE DECISIONS PROCESS

Decisions are a part and parcel of the life of every human being. In every area, be it personal or professional life, we need to take decisions. There are various types of decision-making, which can vary in importance. There could also be some instances where decisions may need to be taken very quickly. But when we are faced with problems or dilemmas where our decision has the ability to affect not only us, but others around us as well, then they have to be made very carefully. Many people take decisions depending just on their gut feeling. However, if the decision involves money or someone's life, it is important to analyze the situation carefully before making the final decision. The 8 steps to decision-making process can help us make significant decisions thoughtfully.
What are the Steps Involved in Decision-making?
Step 1: The first step involved in a decision-making process is to understand the importance of making the decision. You would have to make a list of some important factors like -

• Time required to make the decision
• Result of making a good and a bad decision
• People who would help you
• Who will face the consequences of the decision?
• Affect of the decision on you and the people around you
• What will happen if the decision is not made?

Step 2: Every decision is made to achieve some kind of goal or objective. So, the next step would involve charting down the goals that you want your decision to achieve. At this stage, it is also necessary to make a note of the consequences that are not desirable once the decision is made.
Step 3: For a person to make a decision, he or she has to be confronted with two or more options. If there is no option, making a decision would be impossible. So, the third step requires you to make a draft stating the options that are available to you. One can also create some options that do not exist in reality. Doing this may help you find some solution to your problem and make the decision process a little easier. Once you have listed the available options, you have to examine each option and make a section for options that sound to be very promising and those that seem not so relevant. However, you have to be careful not to take out any option from your list before it is analyzed in detail.
Step 4: Step 4 is where you have to analyze the different options in detail. Your analysis would be on the basis of what would be the result of each option available to you. You can take the help of different people at this stage, asking them to give their opinion on each option. Here, you would be able to recognize certain options that require more research or contemplation. This stage is a filtration process where the options that seem to be irrelevant should be taken out of the list and only the best possible ones retained.
Step 5: At this step, you have to develop some criteria, according to which you have to compare the various options available to you. These criteria are conditions that would help you in evaluating the different options and would aid you in taking the decision.
Step 6: Once you have decided on the criteria, it is time for analysis of each option according to the set conditions. Make a table, where the criteria appears in columns and options appear in rows. Rate each option with a numerical digit, as per how it would be beneficial for each criterion.
Step 7: After rating the available options according to criteria, at the seventh step, try to combine different options that are available to you and see whether you can come up with a better solution, instead of just choosing one option. You also have to summarize the results you got for each option to make the final decision.
Step 8: This is the final stage, where you have to make the ultimate decision. Before you do this it is important to go through all the steps and recheck all the information. This would be beneficial for delaying the time of taking the final decision, if you find any missing information. One very important thing that you have to keep in mind is that every decision you take would have some level of risk. Knowing the potential risk involved in the decision one makes would aid in preparing for the problem that arises with the decision.
These 8 steps to decision-making process are essential decision-making techniques that would prevent one from choosing the wrong option. This is also an important way of learning proper decision-making skills that would assist you in every decision you make.

SOURCE            : http://www.buzzle.com/

CONCLUSION    : By the step of decision making, Although their exact use in any situation may vary, certain stages of thinking and analysis are central to structured decision making. These stages are often introduced as a series of steps, worked through in a largely linear way but with iteration throughout.

MANAGEMENT AND HUMAN RESOURCE DEVELOPMENT

MANAGEMENT AND HUMAN RESOURCE DEVELOPMENT


Introduction


Human Resources Applies to Any Size of Organization


This Topic Applies to Any Size of Organization


All organizations have people -- they have human resources. Regardless of the size of an organization or the extent of its resources, the organization survives -- and thrives -- because of the capabilities and performance of its people. The activities to maximize those capabilities and that performance are necessary regardless of whether the organization refers to them as Human Resource Management, Human Resource Development or Human Resources -- or has no formal name for those activities at all.


Those activities are the responsibility of all people in the organization. Thus, members of organizations, regardless of size or resources, will benefit from using the resources referenced from this topic.


Human Resource Guidelines Apply to For-Profits and Nonprofits


These Human Resource Guidelines Apply to For-Profits and Nonprofits


The vast majority of resources in this topic apply to nonprofits as well as for-profits. There's a misconception that there is a big difference in managing human resources in for-profit versus nonprofit organizations. Actually, they should managed similarly. Nonprofits often have unpaid human resources (volunteers), but we're learning that volunteers should be managed much like employees -- it's just that they're not compensated with money; they're compensated in other ways. Managing volunteers is very similar to paid staff -- their roles should be carefully specified, they should be recruited carefully, they should be oriented and trained, they should be organized into appropriate teams or with suitable supervisors, they should be delegated to, their performance should be monitored, performance issues should be addressed, and they should be rewarded for their performance. Also, organizations should consider the risks and liabilities that can occur with volunteers, much like with employees. So nonprofit organizations should consider the resources in this topic as well.


Clarifying Some Terms -- Human Resource Management, Human Resources, HRD, Talent Management


The Human Resource Management (HRM) function includes a variety of activities, and key among them is responsibility forhuman resources -- for deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations. Activities also include managing your approach to employee benefits and compensation, employee records and personnel policies. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they can't yet afford part- or full-time help. However, they should always ensure that employees have -- and are aware of -- personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have.


Some people distinguish a difference between HRM and Human Resource Development (HRD), a profession. Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, e.g., career development, training, organization development, etc.


The HRM function and HRD profession have undergone tremendous change over the past 20-30 years. Many years ago, large organizations looked to the "Personnel Department," mostly to manage the paperwork around hiring and paying people. More recently, organizations consider the "HR Department" as playing a major role in staffing, training and helping to manage people so that people and the organization are performing at maximum capability in a highly fulfilling manner. There is a long-standing argument about where HR-related functions should be organized into large organizations, eg, "should HR be in the Organization Development department or the other way around?"


Recently, the phrase "talent management" is being used to refer the activities to attract, develop and retain employees. Some people and organizations use the phrase to refer especially to talented and/or high-potential employees. The phrase often is used interchangeably with HR -- although as the field of talent management matures, it's very likely there will be an increasing number of people who will strongly disagree about the interchange of these fields.


Many people use the phrase "Human Resource Management," "Human Resource Development" and "Human Resources" interchangeably, and abbreviate Human Resources as HR -- HR has become a conventional term to refer to all of these phrases.


Thus, this Library uses the phrase "Human Resources" and the term "HR," not just for simplicity, but to help the reader to see the important, broader perspective on human resources in organizations -- what's required to maximize the capabilities and performance of people in organizations, regardless of the correct phrase or term to be applied when doing that.


HUMAN RESOURCE DEVELOPMENT


Human Resource Development (HRD) is the framework for helping employees develop their personal and organizational skills, knowledge, and abilities. Human Resource Development includes such opportunities as employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, tuition assistance, and organization development.


The focus of all aspects of Human Resource Development is on developing the most superior workforce so that the organization and individual employees can accomplish their work goals in service to customers.


Organizations have many opportunities for human resources or employee development, both within and outside of the workplace.


Human Resource Development can be formal such as in classroom training, a college course, or an organizational planned change effort. Or, Human Resource Development. can be informal as in employee coaching by a manager. Healthy organizations believe in Human Resource Development and cover all of these bases.


HUMAN RESOURCE MANAGEMENT


Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM can also be performed by line managers.


HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.


HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.


HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value.






SOURCE : http://humanresources.about.com/






CONCLUSION :





Human resource development is organized learning activities arranged within an organization in order to improve performance and/or personal growth for the purpose of improving the job, the individual, and/or the organization. This is related to Human Resource Management -- a field which includes HR research and information systems, union/labor relations, employee assistance, compensation/benefits, selection and staffing, performance management systems, HR planning, and organization/job design

Management Functions

Managers just don't go out and haphazardly perform their responsibilities. Good managers discover how to master five basic functions: planning, organizing, staffing, leading, and controlling.

• Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales.
• Organizing: After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning work and granting authority are two important elements of organizing.
• Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. A manager in a large organization often works with the company's human resources department to accomplish this goal.
• Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees.
• Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area's plans remain on track.

All managers at all levels of every organization perform these functions, but the amount of time a manager spends on each one depends on both the level of management and the specific organization.

Roles performed by managers

A manager wears many hats. Not only is a manager a team leader, but he or she is also a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one. And these are just a few of a manager's roles.

In addition, managers' schedules are usually jam-packed. Whether they're busy with employee meetings, unexpected problems, or strategy sessions, managers often find little spare time on their calendars. (And that doesn't even include responding to e-mail!)

In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager fills. These roles fall into three categories:

• Interpersonal: This role involves human interaction.
• Informational: This role involves the sharing and analyzing of information.
• Decisional: This role involves decision making.

Table 1 contains a more in-depth look at each category of roles that help managers carry out all five functions described in the preceding “Functions of Managers” section. 

TABLE 1 Mintzberg's Set of Ten Roles Category Role Activity Informational Monitor Seek and receive information; scan periodicals and reports; maintain personal contact with stakeholders. Disseminator Forward information to organization members via memos, reports, and phone calls. Spokesperson Transmit information to outsiders via reports, memos, and speeches. Interpersonal Figurehead Perform ceremonial and symbolic duties, such as greeting visitors and signing legal documents. Leader Direct and motivate subordinates; counsel and communicate with subordinates. Liaison Maintain information links both inside and outside organization via mail, phone calls, and meetings. Decisional Entrepreneur Initiate improvement projects; identify new ideas and delegate idea responsibility to others. Disturbance handler Take corrective action during disputes or crises; resolve conflicts among subordinates; adapt to environments. Resource allocator Decide who gets resources; prepare budgets; set schedules and determine priorities. Negotiator Represent department during negotiations of union contracts, sales, purchases, and budgets.

Skills needed by managers

Not everyone can be a manager. Certain skills, or abilities to translate knowledge into action that results in desired performance, are required to help other employees become more productive. These skills fall under the following categories:

• Technical: This skill requires the ability to use a special proficiency or expertise to perform particular tasks. Accountants, engineers, market researchers, and computer scientists, as examples, possess technical skills. Managers acquire these skills initially through formal education and then further develop them through training and job experience. Technical skills are most important at lower levels of management.
• Human: This skill demonstrates the ability to work well in cooperation with others. Human skills emerge in the workplace as a spirit of trust, enthusiasm, and genuine involvement in interpersonal relationships. A manager with good human skills has a high degree of self-awareness and a capacity to understand or empathize with the feelings of others. Some managers are naturally born with great human skills, while others improve their skills through classes or experience. No matter how human skills are acquired, they're critical for all managers because of the highly interpersonal nature of managerial work.
• Conceptual: This skill calls for the ability to think analytically. Analytical skills enable managers to break down problems into smaller parts, to see the relations among the parts, and to recognize the implications of any one problem for others. As managers assume ever-higher responsibilities in organizations, they must deal with more ambiguous problems that have long-term consequences. Again, managers may acquire these skills initially through formal education and then further develop them by training and job experience. The higher the management level, the more important conceptual skills become.

Although all three categories contain skills essential for managers, their relative importance tends to vary by level of managerial responsibility.

Business and management educators are increasingly interested in helping people acquire technical, human, and conceptual skills, and develop specific competencies, or specialized skills, that contribute to high performance in a management job. Following are some of the skills and personal characteristics that the American Assembly of Collegiate Schools of Business (AACSB) is urging business schools to help their students develop.

source : http://www.cliffsnotes.com/study_guide/Functions-of-Managers.topicArticleId-8944,articleId-8848.html


Conclusion : Management is a job with a very wide spectrum of duties. But every manager should always stick to the principle of 4 basic management functions when achieving his goals. Also if you are not a manager, following this four steps will help you achieve your goals in life much faster and much easier.