Month: April 2010

Process of Group Decision Making

Group Decision Making The term group decision making is used when a decision regarding any particular issue or problem, is taken with the cooperation of two or more than two persons with their mutual understanding. In group decision making, there is a leader involved, who judged, summarize and finalize the opinion given by all the members/entities involved in taking the decision and come up on the conclusion. Process of Group Decision Making Following are the most ethical and smart approach to make group decision, which are followed by the team leader or facilitator. 1.After finalizing the people which are going to be involved in taking decision, the facilitator take brief introduction of everyone. 2.He provides everyone with a blank page, and allows them to give their suggestions on the topic, but silently. All of them jot down their own decision, what they think is right, in this step. 3.Then he uses a “round robin approach”, in which he collects one opinion from each and every member, but he doesn’t discus those opinions. After collecting, he writes down all of these opinions on a white board or flip chart or whatever available at the spot. After that he asks everyone for their next opinion and jot down that as well. By doing that, he record everyone’s opinions. 4.Then he starts discussing all the ideas step by step. He asks everyone...

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Decision Making Process

The process of taking decision seems very easy but actually it is not, it has six steps associated with effective decision making process whether the decision is programmed or non-programmed. Decision Making Process Decision making process consist of six steps recognition of decision requirements, diagnosis and analysis of causes, development of alternatives, selection of desired alternatives, implementation and evaluation and feedback. Recognition of Decision Requirements The need of decision occurs when there is problem or opportunity. Problem is the difference between the actual and desired goal. Opportunity is the potential seen that can exceed the specified current goal. In order to take the decision there must be awareness of problem or opportunity. Diagnosis and Analysis of Causes Once the problem or opportunity has been identified the understanding of situation should be refined. Diagnosis is the step in which the causal factors associated with the decision making process are analyzed. If you jump to see alternatives directly without exploring the cause of the problem then you can’t take the right decision. Development of Alternatives When the problem or opportunity has been recognized and analyzed, decision maker should begin to consider taking into action quickly. The next step is to develop possible alternatives solutions to solve the problem or avail the opportunity. Selection of Desired Alternatives When feasible alternatives have been developed, one must be chosen as solution. The selected alternative...

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Transformational leadership

The term transformational leadership was used for the first time by Downtown. (Northouse. 2009) The leadership style that creates a positive and valuable change among its followers turning them into leaders by motivating and inspiring them is known as transformational leadership. Transformational leadership can be defined briefly as a process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower. This type of leader is attentive to the needs and motives of followers and tries to help follower search their fullest potential. A variety of mechanisms are used by the leader in Transformational leadership to increase their morale, motivation and performance. (Northouse. 2009) Burns’s Transformational Leadership Major research on the topic of transformational leadership has been done by Burns. In fact most of the democratic styles of leadership are all said to be offshoots and branches of the transformational leadership style given by Burns. According to Burns transformational leadership is different from transactional leadership that uses simple exchange and reinforces good job done by the followers by rewarding them. Transformational leadership is more effective as compared to transactional leadership as in transactional leadership encourages and tempts selfish concerns. In transformational leadership an appeal is to social values that encourage people to come together and work together rather as individually. Components of Transformational Leadership According...

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Types of Decisions

Decisions are very important part in life; we take decisions at every moment in daily routine. If we choose a TV program to watch among several programs it means we took decision about which program to watch. Decision is a choice made from available alternatives. There are two types of decision: •    Programmed Decisions •    Non-programmed Decisions Programmed Decisions It involves situations that have occurred often enough to enable decision rules to be developed and applied in the future. These decisions are those that have been made persistently in the earlier period that managers have developed rules or guideline to be applied when certain situations are expected to happen. Programmed decision making is used when an inventory manager of mc Donald’s decides to order beef patty stocks because the stocks are three-quarters empty. Programmed decisions making are a routine that you make every time so that the organization run smooth. Managers can develop rules and guidelines to regulate all routine organizational activities. Most decisions are related to daily activities. In programmed decision making there will be no error in the decisions because it is a routine and managers usually have the information they need to create rules and guidelines to be followed by others. But sometimes it can cause error but not of big kind. Programmed decision making are always used in daily routine to keep the organization running...

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Defining Leadership; Leader VS Manager

Leadership is known to be the oldest preoccupation in the world. Leadership has long been an important debate topic as well as a driver of innovation for centuries. Leadership is said to be an important quality of a manager but not every manager is a leader. Both a leader and a manager are crucial for the success of an organization. However, organizations usually do not clearly differentiate between the two.It is very important to differentiate between a leader and a manager to know what can make the workplace successful. The main difference between leaders and managers is how they motivate the people. [adsense1]A proper understanding of the definition of leadership can help to differentiate between a leader and a manager. The smallest definition of the leadership can be: an influence relationship between the leaders and their followers who intend to bring real changes that serve their mutual purposes. (Rost. Pp 103. 1993). Now this definition tells us that leaders have followers not subordinates. It’s the managers that have subordinates and have a more authoritarian control. Following a manager is something one has to do to keep the job going but in case of the leader it is totally voluntary and one is inspired to follow the leader. A famous quotation and definition of leadership given by Edwin H. Friedman is “Leadership can be thought of as a capacity to...

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MBO – Management by Objectives

MBO is a management method in which particular goals and objectives are jointly established by managers and employees for every department, project and organization. Responsibilities are assigned to every individual by superiors. Progress is periodically reviewed and the employees are rewarded on goal attainment according to their performance. The term MBO was first used by PETER DRUCKER (November 19, 1909 – November 11, 2005) in his 1954 classic ‘The Practice of Management’. MBO rose in 1960’s and 1970’s when it was adopted by most publicly traded companies. It was popular and it is popular. MBO method is being used in many organizations.MBO is concerned with collaboratively goal setting and planning. Managers work with their subordinates to establish performance goals that are consistent with higher organizational objectives. MBO is a process of joint goal setting between a supervisor and a subordinate Typically MBO process is consist of four basic and essential steps, Goals setting is the first step of MBO process. This is the primary purpose of MBO. Organizational objectives and strategies are formulated. Specific objectives are jointly allocated and set among all unit, department or organizational members. Mangers assign responsibilities to subordinates. [adsense1]Second step of MBO process is develop action plans for every member and team. Action plans define, how can be we achieve our objectives within time frame and allocated resources, which are agreed upon by all members....

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