DECISION MAKING

TECHNIQUES
 Decision Making
 Decision making is the study of identifying and choosing
alternatives based on the values and preferences of the
decision maker.

 Making a decision implies that there are alternative to

choices - such a case we want to choose the one that

- Has the highest probability of success

or effectiveness and
- Best fits with our goals, desires,
lifestyle, values, and so on.
 Cont…
• Decision Making is the Process of :

– sufficiently reducing uncertainty and

– doubt about alternatives to allow a reasonable

choice to be made from Various Alternatives
Kinds of Decisions
Decision Making Process
Cont…
 HOW SHOULD DECISION BE
MADE?
• Problem Clarity-
• Known Options-
• Clear Preferences-
• Constant Preferences
• No time or Cost Constraints-
• Maximum Payoff-
 IMPROVING CREATIVITY IN
DECISION MAKING:-
The rational decision maker also needs creativity, that is, the ability to produce novel and
useful ideas. These are ideas which are different from what’s been done before but that
are also appropriate to the problem or opportunity presented.

•Creativity Potential-
People differ in their inherent creativity, and exceptional creativity is scare.
Intelligent people are more likely to be creative. Other traits that have been found to
be associated with creativity are- self-confidence, risk taking, an internal locus of
control, tolerance to ambiguity and perseverance in the face of frustration.

•The Three Component Model of Creativity-

Based upon the extensive body of research, this model proposes that individual
creativity essentially requires:
• Expertise
• Creative thinking skills
• Intrinsic task motivation
HOW ARE DECISIONS
ACTUALLY MADE:-
 EIGHT STEPS TO IMPROVE THE
DECISION MAKING:-
“Half of all decisions fail.” These are the findings from
20 years of studying decision-making at Ohio State.

•When faced with a decision, think about the desired outcome rather than facing the
decision as a problem to be solved.
•Not to think oneself as Superman or Wonder woman.

•Consider the Golden Rule.

•Sleep on it.

•Always state the decision in a positive frame.

•Trust the gut.
•Tell the self “why”.
•Begin Now.
 SIEMENS
Benefits of Right Decision Making.

We have Answers to the world`s toughest questions.

This is our tradition. Since 1847.
 Background

• Siemens is the engineering group that is behind many of the

products and services people take for granted in their daily lives.

• It includes traffic lights, gas turbines, superconducting magnets in

medical scanners, wind generators, automated factories as well as
domestic appliances like kettles and fridges.

• It generates about 40% of the UK's wind energy and it hosts,

supports and maintains the BBC's website.

• The company has been operating in the UK since 1843 and

employs more than 427,000 people Across the world.
 SO, WHAT IS THE SECRET BEHIND
SIEMENS SUCCESS ?

It`s the Right Decisions taken at the Right Time

with respect to Organizational structure,
environment & culture.

How employees are Motivated within an

Engineering Environment at
SIEMENS.
 SIEMENS learnt that it`s their
EMPLOYEES who enables it to be
COMPETETIVE.

So, Their Right Decision making Starts from attracting Right

candidates:-

It goes beyond the standard approaches to attracting good

people because it’s the employees who makes the difference to
the organization.

This approach has led Siemens becoming an open culture

with opportunities for employees at all levels.
• Becoming an engineer at Siemens is about using energy, ideas
and passion.
• It requires a range of skills and abilities that are needed across
the whole business.

• Siemens provides opportunities for young people at all levels to

enter the world of engineering.
• It recruits at a number of different levels.
• However, regardless of entry level Siemens provide its employees to
enjoy wide-ranging opportunities for further education and training.
This can take the job in many different directions.

• By following an engineering career Siemens people have the

opportunity to move into other disciplines. For instance, they may go
into areas such as research, manufacturing, sales and marketing,
finance or project management.
 SIEMENS ENVIRONMENT

 A Creative Environment

 Varied Nature of the Work

Motivating

 Imaginative and Can Influence

their Own Work.
 SIEMENS CULTURE OF MOTIVATION
•At Siemens, the culture encourages employees to
become more involved in their work, suggesting
and implementing improvements.

•Siemens provides the opportunity for employees

to fulfill their higher-order needs. For skilled,
creative workers, like engineers, these are likely to
be of great importance.

•Siemens runs schemes in which suggestions and

projects for improvements are rewarded. This
could be financially, either individually or as part
of a team, or in terms of peer or management
recognition of their achievements.
 SIEMENS CULTURE OF MOTIVATION CONTD…….

Siemens offers engineering staff training and development

opportunities. This links with self-actualization as it helps
engineers to extend their capabilities which may lead to a
progression up the career ladder.

To reduce dissatisfaction, Siemens believes the best method

is to raise awareness of issues with employees and
encourage their involvement. They then understand and
recognize the need for change. This has helped Siemens to
manage change programs.

Motivators at Siemens are the factors that stimulate

engineers to work in the best way possible.
They enjoy the characteristics of their roles. Being
empowered helps them to manage their roles and enables
them to use this power to change things.
 Results of the Right Decision Making
• A motivated SIEMENS workforce put more
energy into work in order to achieve the required
outcomes.

•Motivated employees felt that their work is

special.

•They took pride in what they do.

•There was low absenteeism because employees

are happy to come to work.

•Individuals became more loyal to the

organization and stayed longer because their needs
are being met.