THE PROCESS OF DECISION MAKING

IN AN
ORGANIZATION(PUBLIC/PRIVATE
SECTOR)

MADE BY
SHATAKSHI UPADHYAY
 CHAPTER 1

AN INTRODUCTION TO DECISION MAKING

 According to J L Massie, Decision making can be defined as a

course of action ,consciously chosen from available
alternatives for the purpose of the desired result.
 Decision making can be categorized into:
 Programmed decisions
 Non-Programmed decisions.
 Decision making is an integral part of management.
 The impact of decision making can be long-term and far
reaching, or it may be short term also.
 Business organizational structures came to simplify decision
making.
 (1.1) OBJECTIVE OF STUDY

How decision making takes place in an organization

(Public/Private sector).
The differences of decision making between both the
sectors.i.e. (Public/Private sector)
The process of decision making in both organizations
.i.e.(Public/Private sector).
 (1.2) MOTIVATION OF STUDY

 I was motivated to choose qualitative methodology rather

than quantitative because:
 It provides more insight into the problem and help to develop
ideas.
 It is used to gain understanding of underlying reasons,
opinions etc.
 The sample size is typically small and respondents are
selected to fulfill the given quota.
 The methods of data collection vary in using unstructured or
semi-structured techniques .
 (1.3)RESEARCH QUESTIONS
A research question is an answerable inquiry into a
specific concern or issue.

My study consists of following research questions:

 How do employees of different units/department make decisions?
 While making decisions. What are the concerns of employees?
 Do employees work on same methodologies or different methodologies
while making decisions?
 What is the pattern of decision making in both the organizations i.e.
Public sector and Private sector?
 How much the organization considers its employees in decision making?
 Do employees enjoy decision making in organizations?
 (1.4) PROBLEM DEFINITION

A research problem is defined as a statement about the area of concern, a

condition to be improved ,a difficulty to be eliminated on a troubling
question that exists in scholarly literature in theory, or in practice that
point to the need for meaningful understanding and deliberate
investigation.
 My research problem:
My research problem is Difference research problem. This problem typically
asks the questions“ Is there a difference between two or more groups” .

 PROBLEM STATEMENT:
People generally don’t know how decision making takes place in an
organization, what are the criteria of differences in both the
organizations i.e. Private sector and Public sector. Thus my study asks
the questions of differences in both the organizations.
 (1.5) Contribution(Application)

 This project will contribute to the following:-

 Contribute to the field of Organizational studies.
 Helps the people in understanding that what are the criteria
of decision making.
 Helpful in getting the idea about the work environment of
different organizations.
 This project might also contribute to people doing research on
the same topic.
 (1.6) THESIS CHAPTER PLAN

 Chapter 1: The foremost step is an introduction to decision making. This

chapter is followed by Objective of study, Motivation of study, Research
questions, Problem definition Contribution (application) of the project.
 Chapter 2: Under this chapter , I have done a literature review of my topic.
 Chapter 3: I have defined what is methodology, its types and I have
described my methodology.
 Chapter 4: This chapter consists of Result & Analysis.
 Chapter 5: This chapter consists of a discussion.
 Chapter 6: Consists of a defined summary.
 Chapter 7 & Chapter 8 is followed by References and Appendix.
 CHAPTER 2
LITERATURE REVIEW

 (2.1) Models of Decision making:

 Thinking first: This model includes a process of defining the
problem, diagnose its causes , design possible solutions or
search out the alternatives, then finally decide the best
solution.
 Seeing first: This model suggests that decisions or at last
actions may be driven as much by what is thought. This model
may lead to creative discoveries.
 Doing first: This theory follows the action of enactment,
selection and retention. This approach focuses on doing
various things.
 (2.2) EMOTION,COGNITION&DECISION
MAKING
 Moods and emotions can influence the cognitive process and decision
making .
 The mood of an individual plays a crucial role in evaluation &judgment.

 Post-Decision Affect:
 The outcome of a decision i.e. positive or negative can effect the deciders
feeling .
 The relationship between emotion and decision is bidirectional.

 Anticipated Affect:
 Individuals are motivated to avoid the experience of regret and
disappointment.
 Decisions may also involve the prediction of future feelings.
 (2.3) DECISION MAKING IN ORGANIZATIONS

 However not only managers make decisions in organizations,

but also the employees at every level in the organization
participate in decision making as well.
 Decisions in organizations require groups, teams or
committees, which is also called group decision making.
 Group decision making can take place at different degrees:
 Democratic
 Consultative
 Consensus.
 (2.3.1) Public and Private sector

 The Private sector is typically associated with market forces while the
public sector is more noticeably shaped by political considerations. One is
about ‘Business’ and the other ‘Government’ one tends to be centralized
and other decentralized.

(2.3.2) INDIVIDUAL VERSUS GROUP DECISION MAKING

 The benefits of group decision making include more knowledge and

expertise ,greater no of alternatives can be examined, the final decision
may be better understood and accepted by all group members.
 Discussions can have a negative influence on behavioral factors.
 (2.4) FACTORS INFLUENCING DECISION MAKING

 The factors include Past experience, Cognitive biases, age, level of

commitment , individual differences, Personal beliefs etc.
 People tend to avoid mistakes because past experience might also influence
decision making.
 Cognitive biases influence people by causing them to over-rely or lend
more credence to expected observations and previous knowledge..
 Commitment can also influence decision making because people spend
their large time and effort on the decisions which make them happy.
 As age declines , individual ability also declines to make a decision.
 People who belong to lower socioeconomic group make poor decisions.
 (2.5) EFFECTIVE DECISION MAKING IN ORGANIZATION&ITS
MEASUREMENT

 From the point of view of organizations , the hierarchy of decision making

levels is categorized into strategic decisions, Tactical decisions, Operational
decisions
 Strategic decision are taken by senior management and can be about
Mergers and Acquisitions.
 Tactical decisions are usually made by middle management. They assist the
implementation.
 Operational decisions are taken by lower level.
(2.6) DECISION MAKING MEASSUREMENT

 Decision making can be viewed from various angles, i.e. Optimistic,

Pessimistic and the geometric average efficiency. Optimistic angle
evaluates each alternative in terms of best payoff.
 (2.7) THE TREND OF DECISION MAKING
MEASUREMENT

 In the era of 19th century organizations used to consult elites

from highly cultural and religious background for the issues
that required decisions.
 At the end of 19th century and early 20th century managers
started noticing the problems of traditional methods of
decision making. This leads to the emergence of new
paradigm.
 in the 21st century, however organizations expand , enormous
challenges occur in this competitive world ,managers are now
working very hard to achieve effective decision making and
creativity thus, they make their decisions based on quantitative
proofs.
 CHAPTER 3
METHODOLOGY

 Methodology is the process used to collect information and

data for the purpose of making business decisions.
 In order to survive in today's competitive and demand driven
market both qualitative and quantitative analysis are required
to make most effective decisions.
(3.1) Quantitative factors in decision making:
 The quantitative factors include investment appraisal,
breakeven analysis, market research, sales
forecasting,criticalpathanalysis,chisquare,correlation,
regression-test etc.
 These factors give numerical basis for decision making.
(3.2) QUALITATIVE FACTORS IN DECISION
MAKING:

 This is also called market research method. This method

focuses on obtaining the data through open-ended and
conversational communication
 In my study I have used questionnaire method to collect the
data. The questionnaire is a set of printed or written questions
with a choice of answers, devised for the purposes of a survey
or statistical study.
 In my study , I have collected questionnaire from various
organizations of Private sector as well as Public sector.
 The data was collected from 34 respondents.
 CHAPTER 4
RESULT ANALYSIS

 Grounded theory is a method which I have chosen for my

study. Under this method, the qualitative data starts with a
single case to formulate a theory, then additional cases are
examined to check that they contribute to theory or not.
 Under this method coding is done for qualitative data.
 Coding can be done manually or by using qualitative data
analysis soft wares such as Nvivo, Atlas ti 6.0, Maxqda 2018
etc.
 I have done my analysis by using Maxqda 2018 and Max
dictio
 ANALYSIS

 In Private sector decisions are usually based on discussions and meetings.

On the other hand in Public sector decisions are usually taken by
managerial or top level.
 Under Public sector employees do not have a concern for job security ,but
in Private sector it is a major concern.
 Under Public sector employees do not feel enthusiastic but in Private sector
they feel enthusiastic.
 Approx 90% of organizations work on defined methodologies. Very few
organizations of Private sector are there which do not work on defined
methodologies.
 In Public sector decisions are based on policies and rigid patterns but in
private sector they are based on situations.
 The decisions of Private sector are majorly shaped by market
considerations and the decisions of Public sector are associated
with political considerations.
 In the case of critical situations ,majorly the employees discuss
the scenario with their superiors. In very few organizations
they do SWOT analysis.
 In both the organizations employees consider pros and cons
before making decisions.
 In very few organizations employees consult for a mix of
people while making decisions, majorly they use to consult
their superiors.
 The employees of Private sector are flexible than Public sector.
 CHAPTER 5
DISCUSSION

 The discussion consists of limitations, implication and future work of my

study.
LIMITATIONS
 employees were not ready to provide the details about the organization.
 Approx 90%of organizations work on defined methodology because they
don’t want to waste their time .
 Employees have a major concern of job security.
 Few employees were not able to understand proper sense of questions.
 Problem of miscommunication gap was there.
 Very few people had shown interest in filling the questionnaire.
 The process of collecting the data was quiet lengthy and some people were
not expressive.
(5.2)Managerial implication :
 Organizations should try to adopt new methods, they should
not only work on defined methodology.
 Organizations should consider its employees in decision
making especially in case of public sector they only work on
policies.
(5.3) Future work :
 In future also I would like to continue this study by adding
more domains of organizational studies such as work culture
with relation to decision making, organizational structure and
decision making.
 In future I would also add quantitative factor.
 CHAPTER 6
CONCLUSION

 The process of decision making in both the organizations is

different.
 The exercise of decision making in private sector is more
participative and collaborative
 Both the organizations work on defined methodology ,they
should work on new ideas.
 At the time of data collection very few people were interested
to give the response because they don’t want to share the
information.
 In all the organizations employees consider pros and cons
before making any decisions. At the time of critical situation
they majorly discuss the scenario with superiors.
THANK
YOU