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Decision Making

Decision Making
Evaluating the Importance of Decision Making Successful decision making is one that is devoid of any ambiguity or #tentativeness. Although there is a wide range of choice and alternative techniques to arrive at a decision, timely decision making is what adds value to the decision. The objective is to execute the action plan immediately to avoid delays that might prove costly in terms of #productivity. Defensive #behavior of #managers: Managers who are the key figures to make decisions sometimes play defense to avoid action, blame or change. They exhibit a variety of defensive behaviors which is a wasted effort; this also makes the workers lethargic in their #attitude. Avoiding action is considered to be the best political strategy. Some managers always talk about the rules and regulations that have been followed for ages in that company and want every action to be rigidly adhered to the precedence and neither allows nor admits the need to consider the nuances of a particular case. Decision-making models for entrepreneurs #policies and #procedures: Policies and procedures are of course the prerogative of the top level management, but it is the duty of the manager to suggest reforms in those policies that are obsolete by bringing it to the perusal of the ultimate authorities. How long will you sing the same song “The rules clearly state that”!Also don’t try to pass the buck or play duals, that clearly showcases your inability to handle things and nobody nowadays is prepared to believe false pretense. #expectation of Sub-Ordinates from the Superiors: Subordinates look up to their superiors for support as well as quick solutions for problems of any kind that comes their way; only a person who is quick in reacting to situations with presence of mind and consideration is well liked by and approved of. If you distance yourself from problems or try to prolong a task in lieu of your inability to make a decision, in the short run it might prove helpful in covering up making you look busy and productive. But what happens in the long run? It leads to organizational rigidity and stagnation in terms of productivity and a sag in the #morale of the #employees. Fifty Models for Strategic Thinking  Playing it Safe is not Always Safe: Playing safe is not always safe. Some managers always like to lead a team that has taken up viable projects with a high probability of success. There is no pain but lots of gain. This tactics makes you devoid of risk taking -which according to me is the prime and supreme quality that a manager or a team leader must possess or at least try to develop. Also taking a neutral position in #conflict situations makes you a dull leader and not a person to be much sought after. Finance For Managers What is the result of Poor Decision Making? The first and foremost thing that managers have to understand and admit is that, poor decision making is the root cause of failed course of action. They should have the guts to admit and take up the responsibility for the negative outcome and not to seek some strategically helpless defense mechanisms. Making others a scapegoat for your helplessness doesn’t shield you for long but puts you in the defending territory forever. #defensiveness delays decisions, affects organizational success, sets a bad precedence, increased group conflicts, interpersonal tensions and leads to unreliable evaluations. The long and short of the discussion clearly highlights the importance of recruiting not only a qualified manager but a committed and reliable person who has the ability to take risks and tackle crisis situations with ease and steer the #organization smoothly...
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Art of Delegation

Art of Delegation
Art of Delegation Before embarking on the subject let us find out what delegation is and how the process occurs in an organization. What is Delegation: A manager or a superior cannot think of doing all the jobs by himself. It becomes therefore necessary to delegate some of the jobs to his subordinates to ease the pressure and assign the required authority to carry on with those tasks. This downward pushing of authority is called delegation of authority. Delegation takes place when one person gives another person the right to perform work on his behalf and in his name. It is the process of entrusting part of the work by the superior to his subordinates. PROCESS OF DELEGATION 1. Step one is Assigning Responsibility: The superior directs the subordinate to perform a task with due assistance and training. 2. Step two is Granting Authority: To accomplish the task some authority has to be given to the subordinate to procure the essential resources from the organization like materials, equipment, labor etc., 3. Step three is Creating Accountability: The subordinate is expected to accomplish the task within the stipulated time period and report to the manager regarding the acquisition, use and replacement of resources. ADVANTAGES OF DELEGATION   It reduces the work pressure of the manager   Leads to better decisions   Speeds up decision making   It improves the morale of the employees   Creates a feeling of mutual trust between the superior and subordinates   Helps to create a formal organization structure BARRIERS TO EFFECTIVE DELEGATION  Fear of being exposed: Some superiors fear that their weaknesses might be exposed  Difficulty in briefing the actual requirement- depends on the quick wit of the employees  Lack of confidence in subordinates  Fear of loss of power “I am OK you are OK “ attitude of the managers PRINCIPLES OF DELEGATION OF AUTHORITY Principle of Delegation by Results Expected: The authority assigned to the subordinates should be sufficient enough to ensure their ability to accomplish the results expected. Principle of Absoluteness of Responsibility: One has to understand that responsibility can never be delegated and that the superiors are responsible for the activities of their employees and the performance of the employees has to be absolute towards their superior’s expectations. Principle of Parity for Authority and Responsibility: There should be a perfect balance between assigned authority and responsibility. One cannot be held responsible for a task where he has limited authority and too much of authority with too little responsibility can prove to be dangerous. Principle of Unity of Command: If there is a single superior to listen to, conflicts will be greatly reduced and it will be easy for the subordinate to have a personal rapport with the superior. Authority Level Principle: A manager who has the authority to make certain decisions must necessarily use his discretion and should not try to overlook or pass it on to the top management. Principle of Functional Definition: The objectives, tasks, responsibility and authority must be clearly stated to the individuals involved to facilitate improved performance to accomplish enterprise objectives. Managers fail because of poor delegation. Their personal attitude comes to the forefront which makes things quite difficult. Lack of receptiveness: Some managers are not open to ideas and suggestions from the other end Willingness to let go: A superior must have the willingness to delegate authority for positions which he had left long ago. Willingness to trust subordinates: A trustful attitude makes the proceedings smooth Willingness to establish and use broad controls: The superior must establish some standards to which the objectives or tasks can be compared to and control mechanisms must be installed for evaluation purposes. Feedback from subordinates is the most important criterion that determines the effective functioning of the organization. HOW TO MAKE DELEGATION EFFECTIVE? Right person for the right job Give sufficient authority Free flow of information Establish proper...
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