ELEMENTS OF THE DECISION SITUATION:
- The Decision Makers
- Goals to be served
- Relevant Alternatives
- Ordering of Alternatives
- Choice of Alternatives
Types of Decisions
Simon distinguishes between two types of decisions (i) programmed decisions and (ii) non-programmed decisions.
PROGRAMMED DECISIONS:
- Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines.
- Programmed decisions are standing decisions. A programme in computer literature is a plan for automatic solution. In organisation there are decisions, which are repetitive and routine in nature. A definite procedure can be worked out for handling them, as they may not be treated as new and, therefore, no adhoc decisions are called for. Programmed decisions are available to administrators as guides in solving those problems that recur frequently. Programmed decisions are generally used for routine cases such as tenders and contracts, compensation policy and salary administration.
NON PROGRAMMED DECISIONS:
Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.
- Non-Programmed decisions when decisions are not repetitive, routine and cannot rely much on the past practices, established rules, regulations and procedures and which are inadequate to deal with the new kind of situations the organisation has to be obviously creative and innovative. Non-programmed decisions thus call for more ingenuity, consultation, and a degree of risk taking. They are new, unstructured and consequential. There is no cut-and-dried method for handling them. They require creativity and a greater amount of judgement in treating each independently. Basically these are special purpose decisions. Their life is short since they exist for a particular or single use.
- According to Simon there are different techniques for handling the programmed and non-programmed aspects of decision-making. To deal with programmed decisions the techniques adopted are habit, knowledge and skills, and informal channel. Whereas for nonprogrammed decisions the techniques adopted are selection and training of executives possessing higher skills, innovative ability etc.
Stages in the decision-making process
Simon explains that decision-making is a process of problem definition, of development alternatives, appraisal of alternatives and selection of solution. Thus, according to Simon, the following stages are involved in administrative decision-making:
Identification of Problem
This activity involves finding occasions to take decisions. For this the executive has to analyse and understand the organisational environment. He has to begin with the identification of the problem to be solved. Recognition of such a problem establishes the need for a decision. Problem determination involves intelligence activity.
Search for Alternatives
Once the problem to be solved has been recognised, the administrator begins the search for all various possible courses or strategies or alternatives and identifies the merits and advantages as well as problems involved in each of the alternatives, which would achieve the solution to the defined problem. This second step is called the design activity.
Evaluation of Alternatives
Once alternatives have been developed, the administrator begins the third step: critically evaluating the different consequences and costs of all the alternative courses available.
Selection of Solution
The last step in the decision-making process takes place when the strengths and weaknesses of all the alternatives have been ascertained. The final step is the selection of the most appropriate available alternative, which enables the attainment of objectives at lowest cost. This is called the choice activity. The four steps in the decisionn-making process mentioned above require certain skills such as judgement, creativity, quantitative analysis and experience. Although a small fraction of time is spent in choosing between alternatives, a substantial chunk is spending on
other related activities in the decision-making process.
DECISION-MAKING IN THE ADMINISTRATIVE PROCESS
Administrative activity is a group activity. If a man can plan and execute his own work there is no need of developing any process. But as a task grows to the point where the efforts of several persons are required to accomplish it, this is no longer possible. It, therefore, becomes necessary to develop a process for the application of organised effort to the group task. The techniques, which facilitate this application, are the administrative processes.
Administrative process as you know is a decisional process. This process, according to Simon, involves three important steps. They are segregating certain elements in the decisions of members of the organisation, and establishing regular organisational procedures to select and determine these elements and to communicate them to the members of the organisation. For example, if the task of the group is to build a ship, a design for the ship is drawn and adopted by the organisation, and this design limits and guides the activities of the persons who actually construct the ship. The organisation, then, takes away from the individual a part of his decisional autonomy and substitutes it with organisational decision-making process. Organisational decision-making processes specify (1) his function, that is, the general scope and nature of his duties; (2) allocate authority, that is, determine who in the organisation is to have power to make further decisions for the individual; and (3) set such other limits to his choice as are needed to coordinate the activities of several individuals in the organisation.
References
- Denhardt, Robert B. and Joseph W. Grubbs, 2003, Public Administration – An Action Orientation, Fourth Edition, Thomson Wadsworth, Canada.
- Shafritz, Jay M. and E.W. Russell, 2002, Introducing Public Administration, Third Edition, Longman, New York.
- Shafritz, Jay M., 1992, Classics of Organisation Theory, CA: Brooks/Cole, Pacific Grove.
- Simon, Herbert A., 1976, Administrative Behaviour, A Study of Decision-Making Process, Third Edition, The Free Press, New York.
