Study Material : Organizational Behaviour

1 Robbin SP, Judge Timothy A and Seema Sanghi, Organizational

Behaviour, Pearson.
2. Priyanka Bhivpathaki, Deepak Bhivpathaki and Anjali Ghanekar-
Principles and practices of management and OB, Everest Pub.
3. John W Newstorm- OB, Human Behaviour at work, Tata McGraw- hill
pub.
4. K Ashwathapa- Organizational Behaviour, Himalayan Pub House.
5. Jit S Chandan, Organizational Behaviour, Vikas Pub.
6. RS Dwivedi, Human Relations and organizational Behaviour,
Macmilan
7. RK Suri and Sanjiv Verma, Organizational Behaviour, Wisdom Pub.
8. Sarma VS Veluri, Organizational Behaviour, Jaico Pub
9. Sushama Khanna, Udai parik’s Understanding Organizational
Foundations of Group Behavior
Introduction
Definitions.
In a broad sense, a group is any collection of
people who have mutually dependent
relationships.

Group is defined as a social unit consisting of two

or more independent, interactive people striving
for common goal.

Groups have three characteristics; interaction,

dependence and satisfaction.
Group can also be defined as

‘ a collection of two or more interacting

individuals with a stable pattern of
relationships between them, who share
common goals and who perceive
themselves as being a group.’
Characteristics
The groups possess four common
characteristics:-
•Two or more people are needed to
form a group.
•Interaction among the members.
•Common interests or goals.
•People see themselves as members
Why do people join a group.
•Proximity, interaction and influence.
•To improve their effectiveness for a task.
•For security.
•Esteem. individuals can improve their self esteem through group
membership. (gain esteem by becoming member of a high status
group.)
•To facilitate learning through social comparison
•To exert greater influence over their environment.
• Because they believe that group membership will be useful to
them in achievement of some goal in future.
•Groups are formed for very practical, economic, security and
social reasons.
•As shown by Hawthorne experiment, “affiliation” motive plays a
major role in group formation.
Evaluation of Groups and the state of Group
Development
Groups tend to evolve over a moderately long
period of time.

Groups are dynamic in that they will never

achieve a completely stable structure;

The organization is always changing, however

slowly, as are the relations among members of
the group.
Sequence of five stages:
1.Forming,
2.Storming,
3.Norming ,
4.Performing
5.Adjourning.
Forming.
This is the first stage.
Forming is characterized by a great deal of
uncertainty about the group’s purpose, structure
and leadership.
In this stage group members learn about each
other and orient themselves to the situation.
Members are ‘testing the waters’ to determine
what type of behavior are acceptable.
This stage is complete when members begin to
think themselves as part of the group.
Storming.
This stage is of intra -group conflict.
Members accept the existence of group, but
there is resistance to the constraints that
the group imposes on individuality.
Further, there is conflict over who will
control the group.
When this stage is complete, there will be
clear hierarchy of leadership within the
group.
Norming.
In this stage, close relationships develop
and group demonstrates cohesiveness and
strong sense of group identity.
This stage is complete when group
structure solidifies and the group has
assimilated a common set of expectations
of what defines correct member behavior.
Performing.
The structure at this stage is fully functional and
accepted.
The group finally settles down to complete its assigned
task.
Group energy has moved from getting to know each
other to perform the task.
Roles usually become flexible in that group members
are willing to take responsibilities not specifically
assigned to them to complete the work.
Thus, the group structure is now very supportive of task
performance.
Performing is the last stage for
permanent groups.

However, temporary committees,

task forces and sub groups that
have limited role to perform,
there is an adjourning stage.
Adjourning.
It is the last stage, the group prepares for its
disbandment.
High task performance is no longer the top
priority for the group.
Attention is towards wrapping up of activities.
Response of group members varies at this stage.
Some are upbeat, basking in group’s
accomplishments.
Others may be depressed over loss friendship
gained during group’s life.
Punctuated Equilibrium Model
Temporary groups with deadlines don’t seem to follow the
usual five stage model.
Studies show that they have their own unique sequencing of
action or inaction.
According to this model, research has specifically found
that:
(i) The first meeting sets the group’s directions
(ii) The first phase of group activity is one of inertia
(iii) A transition takes place at the end of the first phase which occurs
exactly when the group has used up half its allotted time.
(iv) The transition initiates major changes.
(v) A second phase of inertia follows the transition.
(vi) The group’s last meeting is characterized by markedly accelerated
activity.
Punctuated Equilibrium Model
The remarkable discovery in these studies was that each group
experienced its transition at the same point in its calendar —
precisely halfway between the first meeting and the
completion deadline—despite the fact that some groups spent
as little as an hour on their project while others spent six months.
It was as if the groups universally experienced a midlife crisis at
this point.

The midpoint appeared to work like an alarm clock, heightening

members’ awareness that time was limited and they needed to get
moving.

Within the context of the five-stage model, it suggests that

groups begin by combining the forming and norming stages,
then go through a period of low performing, followed by
storming, then a period of high performing, and finally
adjourning.
Types of groups
Primary and secondary
Small and large
Membership and reference
In and out groups
Formal and informal groups
Small Group/ Primary Groups
Terms small group and primary group are used
interchangeably. However, there is a technical
difference.
Small group has to meet the criteria of only the small
size i. e. the group must be small enough for face to
face interaction and communication to occur.

Primary group however, in addition to being small must

have feeling of comradeship, loyalty and common
sense of values among its members.
Primary groups are characterized by intimate , face to
face association and co-. operation. Eg. family groups
or peer groups.
Secondary groups. Which are large, face to face
interaction is not possible.
Membership groups. To which a member actually
belongs.
Reference Groups. Those to which an individual will
like to belong, thus the individual identifies with the
reference group.
In-Groups. Those who have or share dominant values.
Out-groups. Those on the outside looking in.

All these groups are relevant to the study of OB but the

formal and informal groups are more directly applicable.
Formal and Informal Groups
Formal Group.
It is a group of people working together, co-
operatively under an authority towards goals
that mutually benefit the participants and the
organization.

It is a system of well defined jobs, each bearing a

definite measure of authority, responsibility and
accountability.
Informal Groups

A pattern of behavior and influence

stemming from human interaction within a
formal structure.

The interaction among participants arise

spontaneously and are not prescribed by
formal structure, nor can they be
controlled by formal authority.
Formal and informal organizations can be
compared on the following eight dimensions:-
•Structure
•Position Terminology
•Goals
•Influence Process
•Control Mechanism
•Communication
•Charting
•Mixed Characteristics
Ser Dimension Formal Group Informal Group
No
1 Structure *Origin planned *Origin
through conscious spontaneous
effort to * Outcome of
accomplish pre- emotional rather
determined goals than logical
*Designed to be process
rational.
* More stable *Dynamic
Ser Dimension Formal informal
No
2 Position Different jobs Roles determine
terminology provide the relationship
relationship between
between them individuals and
and other associated
positions in the informal org.
org.
3 Goals Major goal is Satisfaction of
profitability and members
service to society
Ser No Dimension Formal Informal

4 Influence process *Positions conferred *Influence is

on individuals are the attached to the
center of power and person
influence *Authority is
*Most influential equated with
individual is the influence.
person who can who
can most satisfy the
needs of the group.
*Influence is
* influence flows
directed from top to
from person from
bottom
bottom to top
Ser Dimension Formal Informal
No
5 Control *Control *Control
mechanism exercised exerted
through rules, through
policies, standard of
procedures and behavior
allied measures
*control varies
from minimum
to maximum
Ser No Dimension Formal Informal

6 Communication *Communication *High speed but low

marked by low speed accuracy
but high accuracy
*depend on formal, *design their own
official channels channels popularly
*Communication is called grapevine
largely one way
traffic
Ser Dimension Formal Informal
No
7 Charting Charted Plotted
through org through
chart sociogram
Ser No Dimension Formal Informal
8 Mixed *Include all *Include only
characteristics individuals . accepted ones
*IP relations *IP relations arise
prescribed by job spontaneous.
descriptions.
*leadership assigned *Emergence of
through structure leadership through
members agreement
*Interaction based on *Interaction through
functional personal
duties/positions characteristics,
background and
status etc.
Group Dynamics
Group dynamics refers to a system of
behaviors and psychological processes
occurring within a social group (intragroup
dynamics), or between social groups
(intergroup dynamics).
Kurt Levin is supposed to have coined the term Group
dynamics.

Group dynamics describe how a group is to be organized or

conducted.

Group dynamics is viewed from the perspective of the

internal nature of the group,
*how they form,
*their structure and processes,
*how they function,
*how they affect individual members, other groups and
organizations.
Intragroup dynamics
Intragroup dynamics (also referred to as ingroup-, within-
group, or commonly just ‘group dynamics’) are the
underlying processes that give rise to a set of norms,
roles, relations, and common goals that characterize
a particular social group.

Examples of groups include religious, political, military,

and environmental groups, sports teams, work groups,
and therapy groups.
Amongst the members of a group, there is
a state of interdependence, through
which the behaviors, attitudes, opinions,
and experiences of each member are
collectively influenced by the other group
members.

In many fields of research, there is an

interest in understanding how group
dynamics influence individual behavior,
attitudes, and opinions.
Intergroup dynamics
Intergroup dynamics refers to the behavioral and psychological
relationship between two or more groups.

This includes perceptions, attitudes, opinions, and behaviors

towards one’s own group, as well as those towards another group.

In some cases, intergroup dynamics is pro-social, positive, and

beneficial (for example, when multiple research teams work
together to accomplish a task or goal).
Group structuring.
Work groups are organized system.

They have a structure that shapes the behavior of the

members.

It helps to explain and predict a large portion of

individual behavior within the group as well as
performance of the group itself.
The variables in the group structure are:-
•Leadership.
•Roles.
•Group Size.
•Group norms.
•Group tasks.
•Status congruence.
•Group cohesiveness.
•Group Decision making.
Leadership.
Most important in group structure is its formal leadership.
It is so important that 4 separate lectures are devoted to it.
At this stage it is important to state that :-
*Formal leader of a group is its principal representative.
*He is one who can legitimately exert formal influence on the
activities of the group.*
*The leader is important for the direction and goal accomplishment
of the group.
* He can reward or punish those who do not comply with
directions, orders or goals of the group.
*In informal orgs, leadership is equally important.
*In informal groups, leaders are the people who are respected by
the group members and who have acquired special status.
Role.
Role means a set of expected behavior pattern
attributed to someone occupying a given position
in a unit.

The content of a given role is prescribed by

prevailing norms.

Probably role can best be defined as positions

that have expectations evolving from
established norms.
Role perception refers to an individual’s view of
how he is supposed to act in a given situation.

Role expectations are defined as how others

believe a person should act in a given situation.

Psychological contract means an unwritten

agreement that sets out what management
expects from an employee and vice versa.

Role expectations implied in psychological

contract are recognized as a powerful
determiner of behavior in organizations.
There are four important characteristics of
roles:-
•Roles are impersonal. It is not the individual but
the position that determines the expectations.
•An organizational role is that set of expected
behaviors that vis-à-vis particular position and
particular job.
•It is difficult to mention the exact items of roles,
since it is the most complex response pattern of
human being.
•Roles are learnt quickly and that results in major
changes in behavior.
Role problems are of two kinds,
Role Ambiguity and Role conflict.

Role ambiguity. It is the result of lack of

clarity in individual’s duties, authority and
responsibility.

It can be caused by lack of clear job

description for a position.
Role conflict. it occurs when multiple roles and
directions from one or more individuals create
uncertainty in the mind of the worker.

Role conflict is of two types:-

•Intra-role conflict. Created by many directives
sent simultaneously to someone occupying one
role , making it impossible for the individual to
satisfy all directives at the same time.
•Inter- role conflict. Created by many
simultaneous roles presenting conflicting
expectations.
Group Size
The group size can have implications on how the
group behaves internally or with regards to other
groups.

Group size also has implications on problem

solving, resources and communication trade off,
member satisfaction and character of group
membership.
It is difficult to pin point an ideal size for the
group.

It has been seen that for problem solving,

Less than 5 members result in:-
1. Fewer people to share responsibilities.
2. More personal discussions.
3. More complete participation.
4. faster action
More than 7 members:-

1. Fewer opportunities to participate.

2. More members inhibitions.
3. Domination by aggressive members.
4. Get diverse inputs.
5. Tendency to spilt in sub groups.

Thus it can be seen that 5 to 7 members is

an ideal number.
One of the most important finding related to the
group size is “social loafing”.

Social loafing is a tendency of group members to

do less than they are capable of doing
individually.

This results in inverse relationship between group

size and individual performance.

Social loafing may be caused due to a belief that

others in a group are not pulling their weight.

Or it may be owing to dispersion of responsibility.

Group Norms
All groups have their own norms.

These are sets of beliefs, feelings or attitudes commonly

shared by group members.

These are also referred as rules or standards of

behavior that apply to group members.
The norms are established by group members to
maintain consistency in behavior.
Norms have the following characteristics:-
•Norms summarize and simplify group influence
process.
•Majority of the group members find them acceptable.
•Norms apply only to behavior and not to private
thoughts or feelings.
•Norms are developed only for behaviors which are
viewed as important by most group members.
•Norms are usually developed gradually, but process
can be shortened if desired by members.
•Not all norms apply to all members. High status
members often enjoy more freedom to deviate from
the norms
Group Tasks.
Groups facilitate accomplishment of organizational
tasks. Tasks are classified on the basis of time frame,
task requirement and task objective.

Time frame refers to time required to complete the task.

On this basis tasks are sorted into short term tasks or
long term tasks.

Task requirement includes :-

•Type of info to be generated, processed and
transmitted;
•level of interaction required in the groups members
* Skills required by members.
Status Congruence.
Status may be defined as social ranking within a group
and is assigned to an individual on the basis of position
in the group of individual characteristics.

Status can be the function of the title of individual,

wage or salary level, work schedule, mobility to
interact with others within or outside the group or
seniority.
Organizations mainly have two types of
status structure-formal system and informal
system.

The formal system of status is closely linked

to chain of command (hierarchical structure
of the org).
In informal status structure, values and norms of the
group determine the status of a particular member.
A person may be given a status because of his age,
skill, sex or education.

Status develops in a group because of particular

individual processes or contribution value to the
organization that are highly regarded by the members.

Research studies have revealed that status values in a

group can be easily found out by one’s dress, titles etc.
The existence of status system in organizations
can have both positive and negative
consequences for the managers.

Status system can clarify the relationships

between group members by providing clear
definition of authority and responsibility.

However, an over emphasis on status tends to

reduce both the interaction between the group
members and the frequency of communication.
Status system can have direct influence on group
performance through status congruence which is
agreement between the group members on the status of
individual group member.

When there is full agreement on member’s status,

( status congruence) , the major activity of the group is
directed towards goal accomplishment.

However, when there is disagreement on the status

within the group (status incongruence) , some group
activity is diverted from goal accomplishment towards
resolving this conflict.
Group Cohesiveness.
Group cohesiveness refers to closeness among group
members.

It is the degree to which members are attached to and

are motivated to remain part of the group.

Persons in a highly cohesive group value their

membership and strive to maintain positive relationship
with other group members.
Characteristics of group cohesiveness.
*Cohesiveness is an important indicator of the
degree of influence of the group as a whole.
Greater the cohesiveness, the greater would
be the influence.
*Highly cohesive groups are characterized by
good feeling among members, and, absence of
tension, hostility and conflict.
*Highly cohesive groups are potentially better
performer than non-cohesive groups.
Factors determining the group
cohesiveness

Factors that increase cohesiveness

1.Agreement on group goals.
2.Frequency of interaction.
3.Personal attractiveness.
4.Inter group competition.
5.favorable evaluation.( recognition of
outstanding performance)
Factors that decrease cohesiveness
1.Disagreement on goals.
2.Group size.
3.Unpleasant experience within a group.
4.Intra-group competition.
5.Domination
Introduction to Team
Tell me if the following will
be a team
•A collection of individuals who happen to
have same work place.
•A collection of individuals who happen to
have the same director or line manager.
•A collection of individuals who do the same
job in the same department.
What is a team?
Team is a group which shares and says that
it shares a common purpose and
recognizes that it needs the efforts of every
one of its members to achieve this.

A team is a team when it sees itself as a

team, is going in the team direction and has
worked out its own team ways.
Characteristics of an effective team
•Clear objectives which have been agreed upon.
•Members are committed to these and contribute fully to achieve
them.
•A good mix of people who can contribute diverse ideas and skills.
•A supportive atmosphere where people can give and take
criticism which is constructive and say what they really think.
•A leader who can keep them focused on the task, directs them
well but keeps harmonious relationships and working atmosphere.
•A commitment to hard work and ability to enjoy it.
•An ability to listen to each member and to communicate.
•Respect for each member.
•A high success rate.
•Members committed to the task and the group.
Following is required for team’s success.
•More planning, relating individual activities to team
objective.
•Less defensiveness in meetings or group discussions.
•Greater involvement in helping individuals who are
comparatively weak.
•More attention to looking at short and long term
objectives.
•Allowing greater reliance on each other, sharing a
common view of the objectives.
•Achieving more in productivity and confidence of
outsiders.
•Adaptability to changing circumstances and pressures.
Members’ characteristics in an effective team
•Sharing same values, priorities and objectives.
•Caring for task, the team and individuals in it.
•Ability to listen and be open minded.
•Ability to resolve conflict rather than avoid these.
•Ability to use disagreement to develop better
ideas.
•Ability to give and receive frank, constructive
criticism and retain mutual respect.
•An ability to use a range of skills and knowledge
relevant to the job.
•An ability to play different roles.
Group vs Team
* In groups work performance typically depends on the
work of the individual members.
The performance of the team however, depends on
individual members as well as collective efforts of team
members.

Group and team differ in their accountability for the

jobs.
Members of a group pool their resources to attain a goal,
although it is the individual performance that is
considered while rewarding.

Members of a group usually take responsibility for their

own actions and not other members of the group.
•Team focuses on both individual and mutual
accountability.
•Team members’ work together to produce an outcome
that represents their joint contribution and each team
member shares responsibility for the outcome.
•Thus, in groups, supervisors hold individual member
accountable for their work, whereas in teams members
hold themselves accountable.
• Group members may share a common goal, but team
members share a common commitment to purpose.

•The commitment to goal attainment is what separates

teams from groups.
•Teams and groups both differ in their
connections with the management.
•Groups are required to be responsive to the
demands regularly placed on them by the
management.
•In contrast, once the management establishes
mission for a team, sets its goals, then it gives
team enough flexibility and freedom to do its job
without much interference.
•In other words, team is free to set its objectives,
timings and approaches, without any interference
from the management.
•The teams are self managing and autonomous.
•Members in a group possess diverse
skills

but

skills of the team members are

complimentary.
Types of Teams
Teams can make products, provide services,
negotiate deals, coordinate projects, offer
advice, and make decisions.

The four common types of teams in an

organization:
(a) Problem-solving teams,
(b) Self -managed work teams,
(C) Cross-functional teams,
(d) Virtual teams
Problem-Solving Teams
In the past, teams were typically composed of 5 to 12
hourly employees from the same department who met
for a few hours each week to discuss ways of improving
quality, efficiency, and the work environment."

These problems solving teams rarely have the authority

to unilaterally implement any of their suggestions.

Merrill Lynch created a problem-solving team to figure

out ways to reduce the number of days it took to open a
new cash management account."
By suggesting cutting the number of steps from 46 to 36,
the team' reduced the average number of days from 15
to 8.
Self-Managed Work Teams
Problem-solving teams only make recommendations. Some
organizations have gone further and created teams that not only
solve problems but implement solutions and take responsibility for
outcomes.

Self-managed work teams are groups of employees (typically 10

to 15 in number) who perform highly related or interdependent
jobs and take on many of the responsibilities of their former
supervisors.

Typically these tasks are planning and scheduling work, assigning

tasks to members, making operating decisions, taking action on
problems, and working with suppliers and customers.
Fully self-managed work teams even select their own members
and evaluate each other's performance. Supervisory positions
take on decreased importance and are sometimes even
eliminated.
But research on the effectiveness of self-managed work teams
has not been uniformly positive.

Self-managed teams do not typically manage conflicts well.

When disputes arise, members stop cooperating and power

struggles ensue, which leads to lower group performance.“

Moreover, although individuals on these teams report higher

levels of job satisfaction than other individuals, they also
sometimes have higher absenteeism and turnover rates.
Cross- Functional Teams
Starbucks created a team of individuals from production,
global PR, global communications, and U.S. marketing
to develop its Via brand of instant coffee.

The team's suggestions resulted in a product that would

be cost-effective to produce and distribute and that was
marketed through a tightly integrated, multifaceted
strategy,"

This example illustrates the use of cross-functional

teams, made up of employees from about the same
hierarchical level but different work areas, who come
together to accomplish a task.
All the major automobile manufacturers-Toyota, Honda,
Renault, Suzuki, Tata, and Ford-currently use this form
of team to coordinate complex projects.
Cisco relies on specific cross-functional teams to
identify and capitalize on new trends in several areas of
the software market.
The teams are the equivalent of social-networking
groups that collaborate in real time to identify new
business opportunities in the field and then implement
them from the bottom up."
Virtual Teams
The teams described in the preceding section do their work face
to face.

Virtual teams use computer technology to unite physically

dispersed members and achieve a common goal.

They collaborate online-using communication links such as wide-

area networks, videoconferencing, or e-mail-whether they're a
room away or continents apart.

Virtual teams are so pervasive, and technology has advanced so

far, that it's probably a bit of a misnomer to call them "virtual."
Nearly all teams today do at least some of their work remotely.
Despite their ubiquity, virtual teams face special challenges. They
may suffer because there is less social rapport and direct
interaction among member.
Evidence from 94 studies entailing more than 5,000 groups found
that virtual teams are better at sharing unique information
(information held by individual members but not the entire group),
but they tend to share less information overall.

As a result, low levels of virtuality in teams results in higher levels

of information sharing, but high levels of virtuality hinder it.

For virtual teams to be effective, management should ensure that

(1) trust is established among members (one inflammatory remark
in an e-mail can severely undermine team trust),
(2) team progress is monitored closely (so the team doesn't lose
sight of its goals and no team member "disappears"),
(3) the efforts and products of the team are publicized throughout
the organization (so the team does no become invisible)
Why team building?

By and large, managers recognize the inter-dependence of

employees and the need for co-operations among people to
accomplish work.

This is one major reason for the emphasis on building strong

managerial teams.
Conditions before effective teams can be developed.
(a) The group must have a natural reason for working together
that makes sense.

(b) The members of the group must be mutually dependent on

one another's experience, abilities and commitment in order to
fulfil mutual objectives.

(c) Group members must be committed to the idea that working

together as a group rather than in isolation or in opposition leads
to more effective decisions.
(d) The group must be accountable as a functioning unit within a
larger organizational context.
Key to the concept of the team is communication within the group.
There has to be a singleness of mission and willingness to
cooperate.
The team building activity involves

(1) Identifying the norms that are hindering

effective team work.
(2) Changing them to different norms that will
facilitate team work.
(3) The last but not the least purpose of team
building concerns identifying interpersonal
problems that exist among-team members and
working towards some resolution of these
problems.
Criteria for an effective team
Douglas McGregor observed and worked with many groups,
especially in a managerial context.
Based on his research, observation and his consultation with
different groups, he listed what he considered the unique features
of an effective managerial team.

(a) Understanding mutual agreement and identification with

respect to the primary work
(b) Open communications.
(c) Mutual trust.
(d) Mutual support.
(e) Management of human differences.
(f) Selective use of the team.
(g) Appropriate member skill.
(h) Leadership
Team building works when the following four conditions are
met:

1. Interdependence. The team is working important problems in

which each person has a stake. That is team work is central
to success, not merely an expression of ideology or some
misplaced "ought to".

2. Leadership: The boss wants so strongly to improve group

performance that he or she will take risks.

3. Joint decision: All members agree to participate.

4. Equal Influence: Each person has a chance to influence the

agenda
Group Decision Making
Introduction
No organization can survive without effective decision
making.
Decision making is an essential part of every function of
management.
According to Peter F. Drucker, ',whatever a manager
does, he does through decision making.'
Decision making lies deeply embedded in the process
of management, spreads over all the managerial
functions and covers all the areas of the organization.
Management and decision making are bound up and go
side by side in every activity performed by manager.
Whether knowingly or unknowingly, every manager
makes decisions constantly.'!'
The importance of decision making increasing every
day.
In today's complex organization structure, the decision
making is getting more and more complex.
Whatever a manager does, he does through making
decisions.
Some of the decisions are of routine and repetitive in
nature and it might be that the manager does not realize,
that he is taking decisions whereas, other decisions
which are of strategic nature which may require a lot of
systematic and scientific analysis.
The fact remains that management is always a decision
making process.
The most outstanding quality of a successful manager is
his/her ability to make sound and effective decisions.
A manager has to make up his/her mind quickly on
certain matters.
It is not correct to say that he has to make spur of the
moment decisions all the time.
For taking many decisions, he gets enough time for
careful fact finding, analysis of alternatives and choice of
the best alternative.
Decision making is a human process.
When one decides, he chooses a course alternative
which he thinks is the best.
Decision making is a proper blend of thinking, deciding
and action.
An important executive decision is only one event in the
process which requires a succession of activities and
routine decisions all along the way.
Decisions also have a time dimension and a time lag.
A manager takes time to collect facts and to weigh
various alternatives.
Moreover, after he decides, it takes still more time to
carry out a decision and, often, it takes longer before he
can judge whether the decision was good or bad.
It is also very difficult to isolate the effects of any single
decision.
Decision making

Decision making is a process of selection from a set of

alternative courses of action which is thought to fulfill the
objectives of the decision problem more satisfactorily than other)

It is a course of action which is consciously chosen for

achieving a desired result.

A decision is a process that takes place prior to the actual

performance of a course of action that has been chosen.

In terms of managerial decision making, it is an act of choice,

wherein a manager selects a particular course of action from
the available alternatives in a given situation.
Managerial decision making process
involves :-

*establishing of goals,
*defining tasks,
*searching for alternatives and
*developing plans
The essential elements in a decision making process
include the following :
(i) the decision maker,
{ii) the decision problem,
(iii) the environment in which the decision is to be made,
(iv) the objectives of the decision maker,
(v) the alternative courses of action,
(vi) the outcomes expected from various alternatives
(vii) the final choice of the alternative.
Rationality in Decision Making
The steps of decision making process are
(i)Diagnosing and Defining the Problem
(ii) Analyzing the Problem
(iii) Collecting of Data
(iv) Developing Alternatives
(v) Review of Key Factors
(vi) Selecting the Best Alternative
(vii) Putting the Decision Into Practice
(viii) Follow up.
Decision making by group
In any organization, in a co-operative social endeavour, one
person may appear to have made the decision but 'in fact' may
have performed only one step in the process.
Managers usually make decisions in a social environment.

A may provide a fact; B may provide premise; C may provide a

value judgement; D may supply one complete alternative; E may
supply a second alternative.
Even if all are not present at the time of the final choice, each has
had a definite part and role in the process.
Thus, organization may be viewed as an interrelationship of
decision centers.
Co-operative decision making is a process by which a group
attempts to develop a composite organization mind.
According to Harrison (1975), group decision making is
useful in following ways:
(a) Establishing objectives;
(b) Identifying alternatives;
(c) In evaluating alternatives;
(d) In choosing alternatives;
(e) In implementing the choice.
In any large organization, the decisions to complex
problems emerge from a series of meetings
in which executives jointly approach problems.
These group meeting may be called conferences,
committees, boards, task forces, or merely staff
meetings.
THANK YOU