20 Decision Making

Structure

1.       Objectives

2.       Introduction

3.       What is Decision making?

4.       Decision Making Process

5.       Factors affecting Decision making

6.       How one can make better decisions?

1.      Objectives

At the end of the session learners will be able to

• Explain the concept of Decision making.
• Explain the process of Decision making
• Explain the Factors affecting Decision making
• Suggest ways for better decision making

2.      Introduction

Decision Making is a process. It’s a part of life. We make decisions every day. Everything we say and do is the result of a decision, whether we make it consciously or not. For every choice, big or small, there’s no easy formula for making the right decision. While trying to select the right decision we spend countless hours thinking about it, contemplating all the options and trying to choose the most logical choice from the options available. Sometimes we are faced with problems or situations where we need to take quick decisions. Right from our childhood we are posed with questions and are offered to make choices. For example, which chocolate to buy? As we grow up we are confronted with which stream to take up for higher education? In which field we will be successful and so on.

Many people take decisions depending just on their instincts. Some of the decisions may affect the people around us. At such times, it is necessary to make decisions in a careful manner after weighing the pros and cons. The best you can do is to approach it from as many perspectives as possible and then choose a course of action that seems reasonable and balanced at that time. Decision making is much easier with the requisite knowledge.

3.      What is Decision Making?

Decision making is the process of considering all the alternatives and choose the best possible option available. In every day or every area of our life, we are confronted with problems and we need to take decisions. It is the process of examining possibilities and options, comparing them and choosing a course of action. To decide is to adopt course of action out of the available alternative.

We all make decisions of varying importance every day. Very few decisions are made with absolute certainty because complete knowledge about all the alternatives is hardly possible. Every decision involves a certain amount of risk. If there is no uncertainty, you do not have a decision. Decision making is the process of sufficiently reducing uncertainty and doubt about alternatives to allow a reasonable choice to be made among them. It is the study of identifying and choosing alternatives based on the values and preferences of the decision maker.

The process of Decision-making is not as easy as it seems. At times there are certain important decisions that we have to make which can change the course of our life. Making right decision according to the complexity of the situation is what sets an average individual separate from the rest.

Decision making is most active and fundamental of all managerial activities. Decision making is most closely linked with planning function. It is also part of Organizing, Leading and Controlling.

4.      Decision Making Process

Decision making is the process of making choices by recognizing and defining the nature of decision situation, identifying the alternatives, choosing the best alternative, assessing alternatives, analyze the consequences and then making the decision.

For proper and accurate decision making it is important to follow the decision making process. With the difficulties in mind, the best way to make a complex decision is to use an effective process. Clear processes usually lead to consistent, high-quality results, and they can improve the quality of almost everything we do.

The steps in the decision making process are as follows:

1. Recognizing and defining the nature of decision situation:

The foremost important thing is to recognize that a problem exists. Something has to be changed in the situation and there are possibilities for improvement. Recognizing and defining decision is a very important step.

2. Analyze the problem:

Analyze the problem and try to find the ‘cause’ of the problem. It should be done carefully. It is very important in this step is to know what information is needed, what are the best sources of this information, and how to go about getting it. Consider the goal and what is important, set the priorities, it will help to understand the goals more clearly.

3. Identifying the alternatives:

Try to find out more possibilities and alternatives as possible. Analyze each alternative and how it may affect. In this step of the decision-making process it is very important to list all possible and desirable alternatives.

4. Select the best alternative:

After analyzing all the alternatives, select the best possible alternative. After identifying all the alternatives the person has to weigh the alternatives and select the alternative which seems to be best suited and most effective.

5. Analyze the consequences:

Put the decision into action. We must implement those decisions taken by us. It can be of individual decision or group decision. Once the decision is implement, we have to be responsible of the consequences or the outcome of it. We have to be more prepared if further changes has to be made after the feedback. Sometimes we may have to revise the whole process and make new decision to rectify it. The consequence of our decisions and its impact has to be evaluated regularly to determine its effectiveness.

6. Take a decision:

In this last step of decision making, the person makes up his/her mind to take the final choice or decision.

Let us try to understand this process with the following scenario.

Scenario 1-

The community college Research Centre recently conducted an in-depth case study with fifteen community colleges across the state that identified range of promising practices in developmental education. Information from interviews with instructors, administrators, counselors, examination of instructional materials and classroom observation indicated that a great deal of innovation was in progress, however, it was found that there is lack of academic unpreparedness among college students for curriculum. Community college wants to improve their developmental educational program. Given the necessity of developmental educational programs, community college needs to decide whether to house them in standalone department or to integrate them into regular academic departments.

In this situation, let us try to understand what can be done at each stages of decision making.

Step 1 – Recognizing and defining the nature of decision situation

In the above case community, college needs to decide whether to house them in standalone department or to integrate them into regular academic departments and the various way to improve academic preparedness among college students for curriculum. This is the decision situation.

Step 2 – Analyze the problem

It is necessary at this stage to identify available institutional data that can be used to understand outcome of developmental education students. For instance, retention and pass out rates in individual course, exit rates from developmental education, semester to semester persistence rates, enrollment in each courses, test scores, grades and college graduation rates. Colleges may gather relevant data base from state databases or ask district or state offices to help them gather data on regular basis. Once the appropriate variables are identified, colleges may decide to compare their developmental educational outcomes with findings from peer colleges in the district or state. District or state standards will indicate the specific base on which institutional effectiveness of new policies will be measured.

Once data have been collected, analysis of evidence will allow the faculty and administrators to decide whether the information gathered permits meaningful conclusions about the performance of developmental education students in the institution. College might generate list of specific questions in response to evidence, including which skill areas shows highest retention and pass out rates. Do developmental education students show better retention and pass out rates than students with same entering skill and demographics who are not in community colleges? What are the characteristics of instructors whose sections show better outcomes? What instructional methods are used in sections that show high retention and pass out rates? Questions can be asked about the age, previous academic achievement, and goals of students who do and do not opt for developmental education courses.

After generating a list of questions, institution should specify any additional data that need to be gathered and can decide whether the measures such as placement tests are adequate and provide an accurate reflection of students’ academic preparedness.

Step 3 – Identifying the alternatives

In this step, institute will select at least one area that that the institution can address to improve outcomes. To improve developmental education, college might change their current structure (centralized, fully or partially mainstreamed, or mixed) or work to improve the efficiency of current organizational structure. They need to estimate impact of the new organization on students, faculty and college in general and create a procedure to evaluate and asses change in new organizational structure.

For example, if a college is too large to permit routine, informal departmental communication, incentives can be provided to developmental education instructors and college level instructors to collaborate formally to align their curricula. Procedures for recognizing developmental education and promoting faculty collaboration could be designed by panel of developmental and college level instructors and administrators. However resources must be made available to ensure faculty collaboration. In addition, instructor surveys and analysis of students’ retention and grade data should be used to indicate the result of new organizational structure.

To improve Assessment and placement colleges might change their assessment instruments or cutoff scores for assignment into remedial courses if students are not succeeding at expected rates in college level courses. They might also increase or decrease the number of remedial prerequisites for college level courses. As part of this process college must also estimates impact of placement mandate on enrollment and quality of college level courses.

To improve developmental instruction format, colleges might change the number of levels in one or more areas, add or reduce time in lab practice. As well, college might create learning communities and make the necessary changes in registration procedures and program requirements to ensure adequate enrollment. College might also provide self -paced, tutor based, online, intensive summer, contextualized, personalized, combined reading writing, or combined remedial and college level English. Finally a college might incorporate study skills, off site instruction, alternative instruction, or instruction following a quarterly rather than semester schedule.

To improve Instructional strategies college can identify areas in which one or more new teaching strategies would be effective and appropriate for the levels at which they should be employed and for the instructors who employ them. For example, in institutions that enroll many recent graduates, instructional strategies that use electronic media, active projects, and immediate application to situation that the students see as meaningful may be more effective than instruction in isolated skills.

Step 4- Select the best alternative

Once the institutionally appropriate options for improving developmental education are identified, colleges should prioritize institutional alternatives. Select those that are most praising and feasible. Select the alternative which seems to be best suited and most effective.

Step 5- Analyze the consequences

After selecting the best alternative create the process of implementing them. Examples of implementation processes include faculty administrator’s collaboration, cross disciplinary instructor collaboration, faculty development initiatives, and institutional incentive system to promote the change. Besides faculty administrator collaboration, instructor partnerships set up to align remedial and content curricula can improve developmental education. Challenges for faculty collaboration include finding time for regular meetings and resolving disagreement that may arise in evaluation standards. Cross disciplinary faculty collaboration can be initiated and monitored through professional development activities. Institution may offer incentives to instructor to implement changes. These incentives include summer pay, awards, rewards, and opportunities for presentation and travel to national conferences.

Step 6- Take a decision

Final decision will be taken at this stage considering the consequences of each alternative.

5. Factors affecting Decision making

The ability to make wise decision is a combination of age, sense of right and wrong, accumulated information, knowledge and practice. It applies to almost every aspect of our lives and has a profound effect on it. There are various factors which has effect on decision making.

• Personal attributes (Perception, Values, Beliefs, Judgment, Experience, Personality, Self Awareness, Attitudes)
•  Priority Risk
•  Information/ knowledge/ resources Goals
• Culture
• Policies and procedures Reference groups
• Environment and facilities

Personal Attributes – Following personal attributes has an influence on decision making.

Perception: How the problem or situation is perceived has an influence on decision making. Correct perception of the situation helps in deciding the alternatives and solutions. An individual’s perception can influence how they make decisions and solve problems. For example, when the information of the problem needs to be gathered, individual’s perception will impact on where the information is sought and the type of information regarded as relevant.

Values: In the context of decision making, values are the guidelines a person uses when confronted with a situation in which a choice must be made. Different people have different values. Values are acquired early in life and are a basic part of an individual’s thought. Values are integral to thoughts and actions. They influence the evaluation of both problems and potential solutions. Some of life’s decisions are really about determining what you value the most. When one considers one’s values in decision making, one can be sure to keep one’s sense of integrity and approach decisions with confidence and clarity. When the things that a person does and the way a person behaves match his values, the person becomes satisfied and content.

Beliefs: Belief is not factual. It is a perception which may or may not be factually correct. Misconceptions, prejudiced mind, favoritism, biasness may leads to wrong decisions. The consequence of set of beliefs may be positive or negative attitudes.

Judgement: Decision making and judgment go hand in hand. If a person is a visionary and judgmental, he will have correct perception of the situation which will further help in correct decision making.

Experience: Under the conditions of risk manager’s experience play major role in proper decision making. More experienced the manager more accuracy in the decisions taken. Manager’s experience is helpful under the conditions of risk to use probability of estimates.

Personality: Personality always affects the way one makes his/her choice. Combined with maturity and experience, individual personality is an inevitable factor influencing decision making. Personality determines whether one approaches decisions in rational or emotional manner. Personality factors such as extraversion, agreeableness, conscientiousness, emotional stability, openness to experience influences one’s decision making. The literature says that overconfidence in decision making is high among extrovert and agreeableness. A predisposition to attribute success to luck rather than skill is evident among agreeableness, openness, but low conscientiousness. Propensity to regret is high among conscientiousness.

Self Awareness: Self awareness helps individual to weigh how much decision making process is influenced by individuality.

Attitudes: Attitude is an overall favourable or unfavourable evaluation of anything. The consequence of set of beliefs may be positive or negative attitudes. Attitude plays an important role in decision making. An optimistic person is always ready to take decisions and ready to face the consequences whereas pessimistic person hesitates to take decisions and fears the consequences of decisions.

Priority: Some decisions must be taken on priority basis. It is very important for a manager to decide priority while taking any decisions. Manager needs to decide which decision needs to be taken immediately, which decisions can be taken after some time? For example, the decisions related to day to day functioning needs to be taken immediately.

Risk: Most managerial decisions are made under conditions of risk. Decisions are taken in risk when the manager has some information leading to the decision but does not know everything and is unaware of the consequences.

Information: Information is considered as the basic requirement for decision making because not only the quality but effectiveness of the process is determined by availability of required, relevant, and reliable information. It is only with the help of information that the problem can be defined in its right perspective. Information helps to reduce the degree of uncertainty and complexity involved in decision making. It also helps in developing tentative solutions and selecting a suitable one.

Goals: Deciding the goals provides guideline for further steps to be taken in decision making process. Consider the goal and what is important, set the priorities, it will help to understand the goals more clearly.

Culture: Religion, tradition, language, education, upbringing, and established pattern of social behavior have an influence on individual’s decision making.

Policies and procedures: Many organizations have formalized policies and procedures which have been developed to resolve common problems and to guide managers while making decisions.

Reference Groups: Reference groups such as parents, friends, peers, relatives, and teachers influence individual’s choice of decision.

Environment and facilities: Surroundings such as campus life, safety, structure of the organization, campus life, social life, other neighboring institutes, employees union, facilities such as infrastructure, resources, cafeteria, canteen, programmes and services offered at the institute ,exchange programmes with foreign delegates does have an influence on decision making.

6.      How one can make better decisions?

Decision making is a skill and this skill can be acquired by following strategies or ways.

One can do to make better decisions is to remove oneself from the situation and think of oneself as an outside observer. This will help to make objective decisions. Cultivate Emotional intelligence- The ability to identify and manage one’s emotions and those of others can help keep emotions from influencing unrelated decisions. Outline the issue before one can make decisions, one needs to clearly outline the issue. This will help one to focus on the decision and not be distracted by unrelated things.

Do not overload information- While it is important to have information upon which to base ones decision, too much information may be misleading in decision making process. Prioritize the information that is most important.

One can develop the skill of decision making by gathering information, increasing knowledge, getting more experience, using consultancies and doing research.

By using various cognitive processes one can enhance one’s decision making ability. Accumulated knowledge and experience helps in cognitive process of instinctive decision making.

Brainstorm and list different possible choices to generate ideas.

The ability to capitalize on one’s mistake, refinement of judgement, higher degree of self awareness, flexibility, openness to change helps in better decision making.

References

• Clifford, J. (1986). Decision making in organisations. London: Longman.
• Lall, M. (2003). Decision making skills. New Delhi: S. Chand and company.
• Pandya, S. R. (2001). Administration and management of education. Mumbai: Himalaya Pub., House.
• Singh, N. (2000). Principles of Management- Theory, Practices, Techniques. New Delhi: Deep & Deep Publication Pvt Ltd.
• Zey, M. (1993). Decision making: alternatives to rational choice models. Newbury Park: Sage.