Name- RINI GAUTAM
Roll No. MBA/10090/19
Q. Modern decision making is highly structured, discuss.
Decision making is the process of making choices by identifying a
decision, gathering information, and assessing alternative resolutions.
Using a step-by-step decision-making process can help you make more
deliberate, thoughtful decisions by organizing relevant information and
defining alternatives. This approach increases the chances that you will
choose the most satisfying alternative possible.
Decision-making has become a complex problem. A number of
techniques are available which help in taking decisions. The nature and
significance of decision will determine the type of technique to be used.
The selection of appropriate technique depends upon the judgment of
decision maker. The decision making techniques can be classified into :-
Traditional Method
Modern Method
Traditional Method
This method of decision making is also known as the method of
symptomatic diagnosis. In the same manner, the marketing managers
take decisions on the basis of their experiences, knowledge and
intuition. Thus, in this method no scientific analysis involves.
Modern Techniques for Programmed Decisions
A programmed decision is used to solve routine, repetitive but complex
problems. These techniques are also called as Quantitative Techniques.
The managers working at lower-level of management make
these decisions.( Programmed Decision Making Techniques.)
Modern business is facing drastic changes in working. The decision-
making is becoming more and more complex these days. The changing
and challenging business environment requires special attention for
decision making process.
Modern decision making is structured because of following reasons:-
1. You’ll Make More Confident Decisions
Once you begin collecting and analyzing data, you’re likely to find that
it’s easier to reach a confident decision about virtually any business
challenge, whether you’re deciding to launch or discontinue a product,
adjust your marketing message, branch into a new market, or something
else entirely.
2. You’ll Become More Proactive
When you first implement a data-driven decision-making process, it’s
likely to be reactionary in nature. The data tells a story, which you and
your organization must then react [Link] this is valuable in its own
right, it’s not the only role that data and analysis can play within your
business. Given enough practice and the right types and quantities of
data, it’s possible to leverage it in a more proactive way—for example
by identifying business opportunities before your competition does, or
by detecting threats before they grow too serious.
3. You Can Realize Cost Savings
There are many reasons a business might choose to invest in a big data
initiative and aim to become more data-driven in its processes. One of
the most impactful initiatives, according to the survey, is using data to
decrease expenses. Of the organizations which began projects designed
to decrease expenses, more than 49 percent have seen value from their
projects. Other initiatives have shown more mixed results.
4. Better Communication Means
It is a fact that modern technology has replaced the old technology. And
we cannot imagine our lives without this replacement. Letters were the
most common mean of communication less than a century ago, but now
no one would even think of writing a letter because why prefer a
parchment on a video call? Instant messaging and sharing of photos and
videos was never so easy before. We have to accept that it’s only the use
of technology, which makes it harmful otherwise nothing can beat the
level of comfort in our lives because of technology.
There are other Modern techniques as well which are used frequently
in today’s decision making domain, and they provide a structured
approach for decision making in IT enabled business environment.
(a) Heuristic Techniques:
This technique is based on the assumption that in a complex and
changing business situation strategic problems cannot be solved by
applying rational and scientific techniques. In an uncertain environment
and conflicting interests the problem will have to be fragmented into
small components for taking a realistic view.
By splitting the problem into small parts and analyzing each part
separately, a decision can be reached. It is a trial and error method
based on rules of thumb. Heuristic techniques are developed by
managers to deal with various components at different stages.
Computers can easily be used for solving complex and strategic
problems. This technique is a more refined way of trial and error method
because it is developed by applying analytical and creative approach.
(b) Participative Decision-Making:
It is method of applying democratic means for decision making process.
In traditional managerial techniques, decisions are taken at top levels of
management and these are intimated to lower levels for
implementation. In participative decision-making, employees at various
levels are involved in making various decisions. When subordinates are
made a part of decision making, it not only helps in getting the
advantage of their practical experience but also helps in implementing
decisions properly. The subordinate staff feels motivated and
encouraged and takes active interest in the working.