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Management Concepts & Organisational Behaviour - Decision Making

Techniques of Decision-Making

   Posted On :  17.05.2018 10:51 pm

Now-a-days, different techniques are used by managers in making decisions.

Techniques of Decision-Making
Now-a-days, different techniques are used by managers in making decisions. These techniques, if used properly, would contribute for the effectiveness of the decisions. Some of the important techniques are discussed below.
Brainstorming: Brainstorming is the oldest and widely followed technique for encouraging creative thinking. It was originally developed by A.F. Osborn. It involves the use of a group. The success of the technique lies in creating a free and open environment where members of the group participate without any inhibitions. It starts on the premise that when people interact in a free environment, the possibility for creative ideas to emerge to higher continuous interaction through free discussions may result in spontaneous and creative thinking. The larger are the number of solutions, the fairer are the chances in locating an acceptable solution. Established research proves that one hour brainstorming session is likely to generate 50-150 ideas. Of course most of them may be impracticable; at least, some of them merit serious consideration. This group process is not without limitations. It consumes lot of time and therefore is an expensive exercise. Secondly, it emphasizes only quantity of solutions, which more often than not prove to be superficial. By overcoming the above limitations, a modern manager can use this as an effective tool.
Synectics: Synectics is a new concept developed by William J.J.Gordon. The term ‘synectics’ is derived from a Greek word which means “Fitting together of diverse elements”. It starts on the premise of encouraging that this concept encourages novel thinking for the development of alternatives through putting together different ideas which are distinct from each other. A given problem is presented to a group of people with different backgrounds and varied experiences.
It is the responsibility of the group leader to present the problem and lead the discussion in order to stimulate creative solutions. This approach ensures on the spot evaluation of ideas. The leader who is a technical expert assists the group in evaluating the feasibility of their ideas. Experience shows that synectics is less widely used than Brainstorming. When the problem is tough and challenging, this approach is used for effective decision-making.
Operations Research: The origin and development of operations research is attributed to military operations and applications during Second World War. The war put tremendous pressure on the use of available scarce resources for various strategic and tactical operations. The success of operations research in developing effective options is instrumental in making this approach dependable in decision-making process. Operations Research employs optimizing models like Linear Programming, Project Management, Inventory Control, Decision Theory and Waiting Line Theory.
Operations Research is the systematic method of studying the basic structure, functions and relationships of an organisation as an open system. It aims at developing optimal solution with limited resources in a given situation.

The six steps in its approach to problem solving are:
1. identification of a problem;
2. construction of a mathematical model to investigate the problem;
3. developing a good solution;
4. testing of the model in the light of the data available;
5. identifying and setting up of control points;
6. implementation of the option as a solution to a critical problem (putting a solution to work)

In essence, Operations Research attempts to develop the best solution that will contribute to organisational goals.


Tags : Management Concepts & Organisational Behaviour - Decision Making
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