Paper - 1
Chapter: 3 (Administrative Behavior)
Decision Making
Of all the problems in management, the problem of-'decision making' is the most difficult one. Even in ordinary life, 'to do or not to do' is one of the most important riddles that an individual faces before leaping to action just like Shakespearean hero Macbeth. Macbeth runs about for advice and guidance, for consultations and suggestions and ultimately when he comes to take a decision, he gets too late and changes his mind.
But can an organisation take decision the way we the people take? Can they keep pending for long period? In business, decisions have to be taken very quickly, in Public Administration, however, decision-making is not as easy as in business and we can't keep things pending indefinitely. In Public Administration what we need is right decision.
Decision making in Public Administration is not free from outside influences. All types of pressures, direct and indirect, exert themselves and a decision may have to be taken much to the displeasure and disapproval of the decision maker. On the other hand, business administration is much more free from outside pressures.
Effective management, of private or public organizations, believes in making right and responsible decisions. A good leader is the one who can decide, who can solve the problem 'to do or not to do', and who can willingly undertake the responsibility for making decisions. Responsibility is a burden which most of us do not carry well, which most of us are not willing to accept. But effective leadership means that decisions must be made and responsibility accepted.
No human being is perfect. Not all his decisions can please every one how much it is near to perfection may be. Simon views all the problems of organization in its total social and psychological context and believes that decision-making is not necessarily-rational. He says, "Thus the members of an organization are not to be viewed as mere mechanical instrumentalists. They must be regarded as individuals who have wants, motives and desires, and are limited in their knowledge and in their capacities to learn and to solve problems". Besides that there are other problems, how much time and how much energy should be devoted to making each decision. In fact, there is too little time for too many problems.
Meaning
Decision-making is defined "as selection of a course of action from among alternatives, and it covers matters relating to planning, organizing, directing, staffing and controlling". A decision is an act of choice wherein an executive forms a conclusion about what must be done in a given situation. Terry defines, "A decision is usually made within the guides established by policy. A policy is relatively extensive, affects many problems and is used again and again. In contrast a decision applies to a particular problem and has a non-continuous type of usage." He says that policy itself is the product of a decision. Decision is a means: it is not an end in itself. Decisions have to be made and remade in the light of the ends to be achieved. Decisions are not permanent in so far as they have to take cognizance of the changed circumstances. Decisions have to be responsive to varying situations.
A decision represents a course of behaviour chosen from a number of possible alternatives. Following aspects of human behaviour are involved in decision-making:
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Cognition, those activities of the mind associated with knowledge,
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Contain, the action of the mind implied by such word as 'willing', 'desire', and 'aversion'; and
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affection, the aspects of the mind identified with emotion, feeling, mood and temperaments.
Based on these facts, decision making has been defined as "a conscious and human process, involving both individual and social phenomena, based upon factual and value premises, which concludes with a choice of one behavioral activity from among one or more alternatives with the intention of moving toward some state of affairs."
Decision making has following characteristics: decision -making is a process of selection and the aim is to select the best alternative, decision is aimed at achieving the objectives of the organization if it is made in organizational context, it also involves evaluation of available alternatives because only through this evaluation one can know the best alternative, decision making is a mental process because the final decision is made after thoughtful consideration, decision involves rationality because through decision, one tries to better one's happiness, and decision making involves a certain commitment. This commitment may be for short run or long run depending upon the type of decision.
Types of Decisions:
1. Organisational and Personal Decisions: In an organization, when an individual takes decisions as an executive for the organization, these are known as organizational decisions. Taking such decisions can be delegated from a superior to a subordinate. Such decisions affect organizational functioning directly.
An executive can take decisions about himself, which are personal decisions. These decisions normally affect personal life of the decision maker, though at many times they may affect organisation also. Decision making power can't be delegated to anyone else in the case of personal decisions.
2. Routine and Strategic Decisions: Routine decisions are taken in the context of day-to-day operation of the organisation. Mostly they are of repetitive nature and related with the general functioning. Authority for taking these decisions is generally delegated to lower levels in the organisation.
Strategic decisions are those, which are taken during the current time period, but those primary effects are felt during some future period. It affects organizational structures, objectives, facilities and finances. These decisions are taken comparatively at higher level of management.
3. Policy and Operative Decisions: Policy decisions are taken by top management in the organization, which determines the basic policies. The policy decisions, are very important and have longterm impact. Operative decisions are related with the day-to-day operation of the business.
4. Programmed and Non-programmed Decisions: A programmed decision is applied to structured or routine problems. It is normally of repetitive nature and is taken within the broad policy structure. These generally have short-term impact and are taken by lower level managers.
Non-programmed decisions are used for unstructured, novel and ill-defined situations of a non-recurring nature. The necessity of such decisions arises because of some specific circumstances.
5. Individual and Groups Decisions: Individual decisions are taken by a single individual. These are taken in the context of routine or programmed decisions where the analysis of various variables is simple or for which broad policies are already provided.
Group decisions are taken by a group constituted for this specific purpose or by a standing committee. Group decisions have a certain positivevalues such as greater participation of individuals and quality in decisions, and certain negative values such as delay in decision making process and difficulty in fixing the responsibility of decisions
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