Friday, February 12, 2010

Organization & Organizing


Organization: It is a group of people trying to achieve something.
Organizing: Deciding how best to group organizational activities and resources.

Strategy defines what to do?
Organizing defines how to do?

Key Concepts
Responsibility: Obligation to carryout duties and achieve goals related to positions.

Example: Employee is responsible to do the assign work done.

Authority: Right to make decisions, carryout actions.
Example: Carry decision is not only enough but carryout action is necessary.
The acceptance theory of authority argues that a manager has authority only if subordinates choose to accept his or her commands.

Accountability: Requirement to provide satisfied reason for significant differences from duties and expected resulted.
Accountability is the mechanism through which authority and responsibility are brought into alignment.
Example: Manager Finance must be accountable that why this year revenue is not raised?

Delegation: Assignment or part of a managers work to others.

Delegate the Whole Task: a manager should delegate an entire task to person rather than dividing it among several people. This gives the individual complete responsibility and increase his or her initiative (the ability to make decisions and take action without waiting for someone to tell you what to do).
Example: its my job to deliver the course but part of work I assign to others.

Autonomy: Amount of discretion allowed someone for achieving required output.
Example: How autonomous I am that I should decide

Feedback: Degree to which the job provides clear and timely information about performance result.
Example: How the activities are running, university wants feedback from you.

Nominal Group Technique (NGT)


The nominal group technique is a decision making method for use among groups of many sizes, who want to make their decision quickly, as by a vote, but want everyone's opinions taken into account (as opposed to traditional voting, where only the largest group is considered). The method of tallying is the difference. First, every member of the group gives their view of the solution, with a short explanation. Then, duplicate solutions are eliminated from the list of all solutions, and the members proceed to rank the solutions, 1st, 2nd, 3rd, 4th, and so on. The numbers each solution receives are totaled, and the solution with the lowest (i.e. most favored) total ranking is selected as the final decision. There are variations on how this technique is used. For example, it can identify strengths versus areas in need of development, rather than be used as a decision-making voting alternative. Also, options do not always have to be ranked, but may be evaluated more subjectively.

This technique was originally developed by Delbecq and VandeVen, and has been applied to adult education program planning by Vedros.

Effects of NGT
NGT have been shown to enhance one or more dimensions of effectiveness of decision-making groups. Requiring individuals to write down their ideas silently and independently prior to a group discussion increased the number of solutions generated by groups [2] [3]. Round-robin polling also resulted in a larger number of inputs and fostered more equal participation [4]. The increased number of heterogeneous inputs led to high quality decisions [5].

As compared to interacting groups the NGT groups provide more unique ideas, more balanced participation between group members, increased feelings of accomplishment, and greater satisfaction with idea quality and group efficiency [6] .

When to Use NGT
When some group members are much more vocal than others.
When some group members think better in silence.
When there is concern about some members not participating.
When the group does not easily generate quantities of ideas.
When all or some group members are new to the team.
When the issue is controversial or there is heated conflict.

Standard procedure
Routinely, the NGT involves five stages:
Introduction and explanation: The facilitator welcomes the participants and explain to them the purpose and procedure of the meeting.
Silent generation of ideas: The Facilitator provides each participant with a sheet of paper with the question to be addressed and ask them to write down all ideas that come to mind when considering the question. During this period, the facilitator asks participants not to consult or discuss their ideas with others. This stage lasts approximately 10 minutes.
Sharing ideas: The Facilitator invites participants to share the ideas they have generated. He records each idea on a flip chart using the words spoken by the participant. The round robin process continues until all ideas have been presented. There is no debate about items at this stage and participants are encouraged to write down any new ideas that may arise from what others share. This process ensures all participants get an opportunity to make an equal contribution and provides a written record of all ideas generated by the group. This stage may take 15-30 minutes.
Group discussion: Participants are invited to seek verbal explanation or further details about any of the ideas that colleagues have produced that may not be clear to them. The facilitator’s task is to ensure that each person is allowed to contribute and that discussion of all ideas is thorough without spending too long on a single idea. It is important to ensure that the process is as neutral as possible, avoiding judgment and criticism. The group may suggest new items for discussion and combine items into categories, but no ideas should be eliminated. This stage lasts 30-45 minutes.
Voting and ranking: This involves prioritizing the recorded ideas in relation to the original question. Following the voting and ranking process, immediate results in response to the question is available to participants so the meeting concludes having reached a specific outcome.

The number of nominal group meetings to be held will depend on the nature of the question and accessibility to the key stakeholders best suited to help address the problem.

NGT advantages and disadvantages
One major advantage of NGT is that it avoids two problems caused by group interaction. First, some members are reluctant to suggest ideas because they are concerned about being criticized. Second, some members are reluctant to create conflict in groups. (Many people want to maintain a pleasant climate.) NGT overcomes these problems. NGT has the clear advantage of minimizing differences and ensuring relatively equal participation. It may also, in many cases be a time-saving technique. Other advantages include producing a large number of ideas and providing a sense of closure that is often not found in less-structured group methods.

Major disadvantage of NGT is that the method lacks flexibility by only being able to deal with one problem at a time. Also, there must be a certain amount of conformity on the part of the members involved in NGT. Everyone must feel comfortable with the amount of structure involved. Another disadvantage is the amount of time needed to prepare for the activity. There is no spontaneity involved with this method. Facilities must be arranged and carefully planned. Opinions may not converge in the voting process, cross-fertilization, of ideas may be constrained, and the process may appear to be too mechanical.

Adaptation for ill-structured problems
Modification of NGT, undertaken by Bartunek and Murnighan [7] , helps to deal with ill-structured problems. Normal ideas are generated and listed, followed by the facilitator questioning if the ideas are relevant to the same problem. If not, the problem is said to be ill-structured, and the ideas generated are clustered into coherent groups. These clusters of ill-structured ideas are then treated as problems in their own right, and the NGT procedure is applied to them. Regular breaks are taken by the participants to ensure that the group feels they are still working on the original problem.

The creativity factor in decision making



What is creativity?
Creativity is the cognitive (mental power) process of developing an idea, concept or discovery.

Idea can bring money but money can not bring idea.

What is brainstorming?
The brainstorming technique encourages group members to generate as many ideas as possible on a given topic without evaluation.

Group Decision Making


Major decisions in organizations are most often made by more than one person in order to take advantage of diversity.

Advantages and disadvantages of group decision making:

Advantage:
- More information is available
- More alternative solutions
- Greater understanding and acceptance of the final decision are likely.
- Builds members’ knowledge and skills.

Disadvantages:
- Time consuming
- Disagreement may delay decisions in the group
- Rising of conflict is possible between decision makers.

Steps in effective decision making process


There are four effective managerial processes:

- Define goal/problem
- Generating alternatives
- Evaluating and choosing alternatives
- Implementing and monitoring.

Define problem:The first step in decision making is identifying the problem, comparing present state with expected state.

Generating alternatives:The second step in decision making is developing alternative solutions.
Developing of alternatives can often be helped by brainstorming, a technique for enhancing creativity that encourages group members to generate as many ideas as possible on a given topic.

Evaluating and choosing alternative:This step involves carefully considering the advantages and disadvantages of each alternative before choosing one.
Each should be evaluated systematically according to following criteria.
Feasibility refers to the extent which alternative is good in time, budget and technology.

Implementing and monitoring:It is the last step in the effective decision making process.

Importance of this step:
A good decision can be made in terms of the first three steps and the process can still fail because of difficulties at the final step.

Monitoring:
The more important the problem is, the greater the need for follow-up.

Problem


Problem is a situation that occurs when an actual state of affairs differs from a desired state of affairs.
Problem is a gap between present state and expected state.

There are three types of problem:
1- Crisis problem: Is difficult and requires immediate action.

2- Non crisis problem: Is an issue needing resolution but without the importance and immediacy of crisis.

3- Opportunity problem: A situation offering strong potential for significant organizational gain if appropriate actions are taken.
Opportunity involves ideas to be used not difficulties to be resolved.

Managerial Decision Making




Decision making:Decision making is the essence or very important part of the manager's job.
Decision making is the process of identifying and selecting a course of action to solve a specific problem.
Decision is outcome which is a choice of two or more alternatives.

Decisions and decision making:
Decision: is a choice made from available alternatives.
Decision making: is the process of identifying problems and opportunities and then resolving them.

Types of decisions:
1- Programmed decisions: decision made in routine, respective, well structured situations by use of decision rules.
Rules, virtually automatic decision making that follows established rules or guidelines.
- Managers have made the same decisions many times before.
- There are rules and guidelines to follow based on experience with past decisions.
- Little ambiguity involved and threats.

2- Non-programmed decisions:
Are made in response to situations that are unique, poorly defined and largely unstructured.
Non routine decision making that occurs in response to unusual, unpredictable opportunities and threats.
There are no rules to follow since the decision is new.

Decision making conditions:
Certainty: all the information the decision makers need is fully available.

Risk: decision has clear-cut goals.
Good information is available.

Uncertainty: Information about alternatives and future events is incomplete.
Mangers may have to come up with creative approaches to alternatives.

Ambiguity:- By far the most difficult decision situation.
- Goal to be achieved or the problem to be solved is clear.
- Alternatives are difficult to define.
- Information about outcomes is unavailable.


Certainty:A decision making condition in which managers have accurate, measurable and reliable information about the outcome of various alternatives.

Risk:A decision has clear-cut goals and good information is available, but the future outcomes are subject to chances.

Uncertainty:Decision making condition in which managers face unpredictable external conditions or lack the information needed.
Uncertainty are clouds, information is not clear.

Managers as decision makers:
Managers decisions impact on organization success, in this section there are two major types of models of how mangers make decisions.

- Rational models: managers usually use rational process, make optimal decision and understand all the information needed for decisions when making them.

Non rational model:Non rational model of managerial decision making suggests that information-gathering and processing limitations make optimal decisions difficult for managers.