UNSTRUCTURED DECISIONS
Thus far we have been discussing the structured programmable decisions which are very large in number and perhaps more easy to handle as compared to the
unstructured or relatively less structured decisions which we would now like to
discuss. Though fewer in number as compared to the structured situations ,this category of decisions is more repetitive in nature, usually 'one shot’ occurrences for which Standard responses are usually not available Hence they recuire a creative process of problem solving which is specially tailored to meet the requirement of the situation on hand. In fact managers at higher evels in an organisation are usually faced with more such unstructured decision making situations. Some have aptly described the situations as somewhat 'strategic’ in nature as compared to the ‘tactical’ orientation of the structured decisions at the lower levels of management.
Strategic decisions are non-repetitive, vital and important and aim at determining or changing the ends or means of the enterprise.Since each manager, in the case of such unstructured, non-programmed decisions, may bring, his own personal beliefs, attitudes and value judgment to bear on the decision process, it is possible for two managers to often distinctly different solutions to the same aroblem, each claiming that he is acting rationally. In fact the ability to make good non-programmed decisions helps to distinguish effective managers from ineffective managers. Unstructured decisions are not simple. They are usually quite complex in nature. We can’t shy away from them for someone has to ultimately make these decisions even though there are inherent dangers when confronting I'll-structured problems. Non-programed decisions are essentially new and unique. They have to be often solved de novo. There is no tried and true method of handling them. Unstructured decisions are those in which the decision maker must provide Judgment, evaluation and insights into the problem definition.
ADDITIONAL CATEGORIES
There are many ways of categorising decisions as proposed by various persons from time to time. We have already discussed structured and unstructured situations. Some ' have termed them as programmed/programmable and non-programmed/non programmable decisions.Yet others have talked of routine/repetitive and non-routine/non-repetitive decisions. Some have stated the range of tactical and strategic decisions, others have termed them as minor and major decisions. We can easily have just two classes of decisions as ‘ follows -
Class I : Unstructured, Non-programmable, Strategic, Major, Routine, Repetitive, Complex, Long-run.
Class Il : Structured, Programmed, tactical, Minor, Non-routine, Non-repetitive, Simple, Short-run.
Departmental, Inter-departmental and Enterprise Decisions
Let us discuss decisions that could he departmental, inter-departmental and enterprise decisions. For instance, sanctioning leave to an employee is a departmental decision, but making a slight change in the design of the product is an interdepartmental decision, and entering a new line of business is an enterprise decision. The department level decision is strategic in nature whereas departmental level is tactical in nature .
Organisational and Personal Decisions
When an executive acts formally in his expected role in an organisation, he makes organisational decisions. However, when the manager takes a decision in his personal capacity and not as a member of the organisation, it is known as a personal decision. For instance, transfers that are effected by an executive are organisational decisions. However, an executive who decides to leave the present organisation is making a personal decision.
Individual and Group Decision Making
Decisions may be taken either by an individual or by a group or a committee. It is difficult to say which is a better method of taking decisions. Each method has its strengths and weaknesses. We are all aware of the delaying tactics that are adopted by institution of committees in the resolution of conflicts On the other hand, it is argued that two blockheads are better than one. There would be richer ideas and many more alternatives generated in the process. But when it comes to assessment of selection, there could be ‘lot of heat’ generated. How does one resolve such a situation? Is it by
consensus? or by voting?
1) Individual Decisions
According to Simon, “It is impossible for the behaviour of a single isolated individual to reach any high degree of rationality. The number of alternatives he must explore so great, the information he would need to evaluate them so vast, that even an approximation to objective rationality is hard to conceive. The individual decision maker is an individual human being --the one factor most vital and most difficult understand because of various factors such as age, perception, intelligence, experience in a given area, confidence in decision making, time available, resource position, upbringing, family background, and so on that could come into play.
The most mysterious factor is still this decision making individual human being. How and why an “individual acts in a certain way at a certain time is still quite a mystery. The individual decision maker could have quite an amount of prejudice and bias that is inherent on account of perceptual processes which act as great filters. We only accept what we want to accept and hence only such information filters down to our senses, and secondly, the perception is highly subjective. The information gets , distorted to coincide with our pre-established beliefs, attitudes and values.
These are additionally ‘cognitive’ constraints. Psychologically we are always uncomfortable with decision making. We are never sure if our choice of the alternative was correct and optimum, until the impact of the implication of the decision has been felt. This makes us feel very insecure and could be one of the many causes of ‘stress' in individuals leading to hypertension 'and other health complications.
No doubt it is important to have adequate and accurate information about the situation for good quality decision making. However, it must be recognised that “an individual has constraints of nature such as physical, psychological, sociological etc. These limit the amount of information the individual can handle.
ii) Group Decisions
As for group decisions, these are usually taken for major issues in order to secure wider cooperation, acceptability and coordination. Usually in a group like situation the chances of subjective errors are reduced and more options are thrown open. If the group is larger, such decisions suffer from unnecessary delays, deadlocks and petty party politics.
Some advantages of group decisions are
i) increased acceptance by those affected and hence implementation is easier.
ii) Easier Coordination.
Ill) Easier Communication.
iv) More information processed on account of availability of a larger number of specialists in the group.
v) Group decision making is more democratic in nature.
vi) Participative group process builds up a training ground for subordinates and others which allows for smooth handover when individuals leave the scene (no vacuum is created).
Let us novv enlist some of the disadvantages of group decisions.
i) Group decisions take longer.
ii) Groups can be indecisive.
iii) Groups can compromise.
iv) Groups can be dominated.
v) Group members may exhibit “focus effect” viz., the group may just focus on one or a few suggested alternatives and spend all the time in evaluating these and may never come up with other ideas thus limiting the choices
DECISION MAKING PROCESS
Simon’s Decision Making Model
Let us now look at the decision making process as proposed by Herbert A. Simon. His model is a conceptual framework that divides the decision making process into
the following stages or phases:
i) Intelligence Activities: At this stage, a search of the environment takes place to identify events and conditions requiring decisions. Data inputs are obtained, processed and examined for clues that may identify problems or opportunities.
ii) Design Facilities: At this stage, alternative courses of action are developed, analysed and evaluated. This involves processes to understand the problem, to generate solutions, and to test solutions for feasibility
iii) Choice & Implementation Activities: Here one has to select an alternative as course of action from those available. A choice is made, implemented and monitored.
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