Describe different types of managerial decisions and the steps and the techniques used for decision making. Discuss Individual Vs Group decision making

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Types of Managerial Decisions:

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  1. Programmed Decisions: Routine decisions based on established guidelines.
  2. Non-programmed Decisions: Unique decisions with no predefined course of action.
  3. Strategic Decisions: Long-term decisions affecting the organization’s overall direction.
  4. Tactical Decisions: Mid-term decisions guiding specific actions to achieve strategic goals.
  5. Operational Decisions: Short-term decisions addressing day-to-day operations.

Steps in Decision Making:

  1. Identifying the Problem: Recognizing the need for a decision.
  2. Gathering Information: Collecting relevant data to understand the situation.
  3. Generating Alternatives: Developing possible solutions or courses of action.
  4. Evaluating Alternatives: Assessing pros and cons of each option.
  5. Making the Decision: Selecting the best course of action.
  6. Implementing the Decision: Putting the chosen plan into action.
  7. Monitoring and Adjusting: Evaluating the decision’s effectiveness and making adjustments if necessary.

Decision Making Techniques:

  1. SWOT Analysis: Examining Strengths, Weaknesses, Opportunities, and Threats.
  2. Cost-Benefit Analysis: Weighing the costs against the benefits of each alternative.
  3. Decision Trees: Visualizing possible outcomes and their probabilities.
  4. Quantitative Models: Using mathematical models for decision analysis.

Individual vs. Group Decision Making:

  • Individual Decision Making: Faster and more efficient for routine decisions. However, it may lack diverse perspectives and creativity.
  • Group Decision Making: Involves multiple viewpoints, fostering creativity and collective intelligence. It can be time-consuming but often leads to better-informed decisions.

The choice between individual and group decision making depends on the nature and complexity of the decision, the urgency, and the available resources.