anizational Behavior

Decisional Process
Click to edit Master subtitle style

Prepared By:-

4/2/12

Tejas Baldaniya Kiran Makwana 11 Kevin

What is the Decision????

4/2/12

22

Decision making models

i.

Rationality Models Bounded Rationality and Heuristics Models Embedded Models Individual Decision Making Organizational Decision Making

i.

i.

i.

i.

4/2/12

33

Rationality models

Economics and financial discipline emphasized the complete rationality of decision making based on known alternatives. Evaluated on the basis of calculation of pay-off and known consistent pattern of preferences. Aim:- i.) maximum profit ii.) equalizing managerial cost and iii.) equalizing managerial revenue. Recent models of rational decision based on ABC(activity based costing). Other model is EVA(economic value added) in which true cost of capital is determined. And another is MVA(market value added) which is difference between market value and invested capital.
1 4/2/12 44

Bounded rationality and heuristics models

Rational choice models maximizes the profit by examining all the alternatives based on all information. However it is UNREALISTIC. So rationality is bounded and decision-makers identify obvious alternative and choose one which is acceptable. It does not discuss how the choice will be influenced. Cognitive decision theorist suggested that decision-makers rely on heuristics. Heuristics are used for decision making like:i.) availability(judgment on available information) ii.) representativeness(judgment on matching against pre-existing category) iii.) anchoring(judgment on the initial value and then adjusting it if necessary)
1 4/2/12 55

Embedded models

Alternative to the rationality or bounded rationality models are the psychological and cultural embedded models. This models emphasize the role of Values, Emotions, Intuition and Habits(for individual decision making) And are Socially, Culturally and Political embedded(for organizational decision making)

4/2/12

66

Individual decision making

Etziomis concept Franks concept Manbridges concept Flams concept Katzs concept Zeys concept Habit has also been given central place in decision making.

4/2/12

77

Organizational decision making

Micro level decision making to Macro level decision making. Difference between individual decision making and organizational decision making. Organizational decisions are no more made by individuals than the choice of individuals are made by the hand that sign the papers March and Shapira point out five main areas demonstrating how rationality model fails to explain the reality.

4/2/12

88

1.

Most organization in reality make decision and then collect information to validate the decision. Most organization copy what others do instead of applying a rational decision making process to organizational change. In reality, means are only loosely coupled to ends and loosely coupled to one another, unlike the means-end relation concept in the rationality model. Rationality choice theories are unconcerned with the possibility of uncertainty about preferences. Myth, symbols and rituals are important in decision making but not recognize by the rational models. Decision making is politically embedded.

1.

1.

1.

1.

4/2/12

99

conclusion

Decision making both at the individual and organizational levels, is influenced by rational as well as psychological, social, cultural and political factors. Each case of decision making is unique and requires a multi-disciplinary approach to understand and analyze it.

4/2/12

1010

Decision Making Styles

Decision: - made by individual - in personal matter/roles related to group/organization

Decision Making styles for Leaders

Leaders :- Responsible for making decisions in group/organization Differ according:-Their process orientation
1 4/2/12 1111

Leadership, an important role

Leaders style
(on the centralization-de centralization continuum) STYLES DESCRIPTION

1. Autocratic/directive

Define & diagnose the problem -Generates, evaluates & choose among alternative solution
-

2. Autocratic with group information input

- Define problem - Diagnose cause of problem, use group info. To determine cause - List potential solution on his own - Obtain data from group to evaluate the alternatives & make choice from them

3. Autocratic with groups - Define problem, Diagnose its cause & select a review & feedback solution -Then present to group for understanding, review & feedback
1 4/2/12 1212

4. Individual consultative style

- Define problem -Share definition with individuals -Solicits idea for problem cause & potential solutions -Individuals expertise in evaluation of alternative solution -After obtained info. Leader make choice the solution to implement

5. Group consultative style - Define problem -Share definition with group -Solicits idea for problem cause & potential solutions -Individuals expertise in evaluation of alternative solution -After obtained info. Leader make choice the solution to implement 6. Group Decision Style -Leader Define problem -Share definition with group -Group diagnose the cause of the problem -Group generates, evaluates & choose among the solutions
4/2/12

1313

7. Participative Style

-Group do the entire decision making process -Leader roles as process facilitator

8. Leaderless Team

-No leader -Person changes from problem to problem -Group do the entire decision making process

4/2/12

1414

Individual Decision-making Styles

Styles 1 2 3 4 5 6 Deep deliberation Impulsive decision Escape Compliance Safe Playing Procrastination

4/2/12

1515

CONSENSUS BUILDING

Identify the problem Identifying alternative strategies Prioritizing strategies Selecting and detailing strategy
Click to edit Master subtitle style

4/2/12

1616

Factors Hindering Consensus

Dominating by few Withdrawal Tendency to make a quick decision Testing strengths Avoiding confrontation Click to edit Master subtitle style Trading or compromising

4/2/12

1717

Factors Facilitating Consensus

Concern for others Listening Identifying and using resources Discussing underlying assumptions and logic Testing consensus and disagreements Process
Click to edit Master subtitle style

4/2/12

1818

CONSENSUS COMPETENCIES

4/2/12

1919

PROBLEM SOLVING

Deciding priorities Analyzing the problem at several levels Generating alternatives Discussing the consequences of each alternative Developing criteria for decision making
Click Reviewing to edit Master subtitle style

4/2/12

2020

Task Facilitating

Initiative Information seeking Giving Information Summarizing Expressing opinions Synthesizing Focusing on strategies Time keeping
1 4/2/12 2121

Group building

Listening Expressing and responding to feelings Gatekeeping Supporting Building on others ideas Encouraging silent members Process reviewing

4/2/12

2222

Attention to problem solving And group-building functions

p ou r

End Attention to task functions

ife L

aG f

Beginning Three Types of Functions During the Life of a Group

4/2/12

2323

SALES TARGET AT KNB BANK

Click to edit Master subtitle style

4/2/12

2424

OVERVIEW OF CASE STUDY

INTRODUCTION TO KNB BANK

GROWING PRIVATE SECTOR BANK. SAFE AND SECURE BANKING. ENTERED INTO JOINT VENTURE WITH A UK BASED INSURANCE COMPANY.

4/2/12

2525

PROBLEMS WITH TIRUPUR BRANCH

UNDER PERFORMANCE LOW CUSTOMER SATISFACTION LACK OF EMPLOYEE PARTICIPATION PROBLEMS WITH MANAGEMENT

4/2/12

2626

APPROACH BY KNB BANK

APPOINTMENT OF NEW MANAGER FIXED TARGETS FOR THE BRANCH JOINT VENTURE WITH SECURE INSURANCE SERVICES.

4/2/12

2727

DIVERSIFICATION HUGE GROWTH OF INSURANCE SECTOR COMPETITIVE EDGE

4/2/12

2828

4/2/12

2929

MEETING

DISCUSSED BRANCH PROBLEM BANKS FORAY INTO INSURANCE SECTOR ADDITIONAL RESPONSIBILITIES TO EMPLOYEES LITTLE EMPLOYEE PARTICIPATION

4/2/12

3030

MEETING

4/2/12

3131

OUTCOMES OF MEETING

ENFORCEMENT OF SALES TARGET . JOB ENLARGEMENT OF EMPLOYEES. NO SUBSTANTIAL INPUTS FROM EMPLOYEES RESENTMENT AMONG EMPLOYEES ACTION PLAN WAS REJECTED BY EMPLOYEES

4/2/12

3232

OUTCOMES OF MEETING

4/2/12

3333

QUESTIONS FOR DISCUSSIONS

4/2/12

3434

RAJ MALHOTRA ENCOURAGED EMPLOYEE PARTICIPATION IN THE DECISION MAKING PROCESS OF HIS BRANCH

TO COPE UP WITH THE NEW CHALLENGE INCREASE IN DOMAIN KNOWLEDGE OF FINANCIAL PRODUCTS EMPLOYEES MISSED THE OPPORTUNITY TO EXPRESS THEIR VIEWS. INNOVATIVE IDEAS FROM THE SUBORDINATES ABLE TO CONCLUDE MEETING/AGENDA IN AN EFFICIENT MANNER EFFECTIVE WAY OF COMMUNICATION

4/2/12

3535

What could malhotra could do to build consensus leading to commitment for action?

MAKE AN ACTION PLAN FROM ALL THE EMPLOYEES OF THE BANK ABILITY TO DO WORK THROUGH THE OTHERS MAKE THE QUESTIONNIARE TO JUDGE THE SKILLS OF EMPLOYEES

4/2/12

3636

Malhotra attempted to develop consensus but failed. Which processes impeded consensus building?

MAKE THE TWO WAY COMMUNICATION COACHING, MENTORING EXAMPLES OF CORPORATES WHICH ARE IN DIVERSIFICATION MAKE EMPLOYEES AWARE OF MISSION AND VISSION OF BANK FEEDBACK FROM EMPLOYEES THROUGH A RESULT ORIENTED WAY

4/2/12

3737

BENEFITS OF EMPLOYEE PARTICIPATION

4/2/12

3838

Employee Engagement
Opps for upward feedback Feeling informed Mgt commitment to organisation Managers fairness re: issues Treating employees With respect

Engagemen t Performanc e

Intention to Stay
4/2/12 3939