MB01 – 02 : MANAGEMENT PROCESS & ORGANIZATION BEHAVIOR

Q3. Discuss the nine-step framework in the decision cycle. What do you mean by decision rationality?
Ans : A study of over 2000 managers, supervisors and executives was undertaken in order to determine what steps in the decision cycle they used and found helpful. Out of this study came a simple nine-step framework.



1. Monitor
The environment should be monitored constantly to obtain feedback. The decision - maker monitors the environment to detect deviations from plans or to pick up signals on the deed to take a decision.
2. Define
The problem or situation has to be defined precisely. The information picked up at the monitoring stage could relate to the symptoms of the problem, but not causes.
3. Specify
The decision objectives have to be specified, and the likely risks and the constraints should be considered what the decision-makers expect to be achieved is clarified.
4. Diagnose
The problem or situation is analyzed more thoroughly and the cause of the problem is scrutinized.
5. Develop
Alternative courses of action or solutions are developed. The options open to the company are discussed at length and the critical options are listed
6. Establish
At this stage, the methods or criteria to be used in the appraised the options or alternatives are established.
7. Appraise
Alternative solutions or courses of action should be appraised. Each alternative or option is evaluated. The costs of implementation of the alternatives would also be appraised. Both cost and benefited would be expressed in quantitative and qualitative terms.
8. Choose
The best alternative solution or course of action is chosen.
9. Implement
The best alternative solution or course of action is implemented and the detailed operational plan is discussed.

 Decision Rationality
The most often used definition of rationality in decision making is that it is a means to an end. If appropriate means are chosen to reach desired ends, the decision is said to be rational. However, there are many complications to this simple test of rationality. To begin with, it is very difficult to separate means from ends because an apparent end may be only a means for some future end. This idea is commonly referred to as the means - end chain or hierarchy.

One way to clarify means-ends rationality is to attach appropriate qualifying adverbs to the various type of rationality.

1. Objective Rationality
Can be applied to decisions that maximize given values in a given situation.
2. Subjective Rationality
Might be used if the decision maximize attainment relative to knowledge of the given subject.
3. Conscious Rationality
Might be applied to decision in which adjustment of means to ends is a conscious process.
4. Deliberately Rational
A decision is deliberately rational to the degree that adjustment of means to ends has been deliberately sought by the individual or the organization.
5. Organizationally Rational
A decision is organizationally rational to the extent that it is aimed at the organizational goal.
6. Personally Rational
A decision is personally rational if it is directed towards the individual's goal.

Q4. What is Perception? Explain the factors influencing the perceptual process.
Ans
Several factors influences how we process the perceptual inputs and transform them into outputs. People behave on the basis of what they perceive reality to be not necessarily as what reality is. Three influences on the concept of perception are described below. The influences are
1. The characteristics of the Perceiver.
2. The characteristics of the Perceived.
3. The characteristics of the Situation.

1. The characteristics of the Perceiver.
A person's needs, habit, impact, past experience; ethics and values, attitudes and personality all influences the perception process.
 Needs and Motive
Our need patterns play an important part in how we perceive things.
 Self-Concept
Self- concept connotes how we perceive our self, which then influences how we perceive other and the situation we are in.
 Our ethics values and culture
Our ethics, values and culture upbringing also play an important role in our perception about others. It is difficult to perceive the personality of a person raised in another culture because our judgment is based upon our values.
 Past Experience
Our attitude towards other is also influences by our previous experiences with them. Our past experiences with them. Our past experiences would the way we perceive our current situation.

 Current Emotional State
If an individual is depressed, he is likely to perceive the same situation differently than if the individual is elated. Thus, the emotional and psychological states of the individual are also likely to influence how things are perceived.

2. The characteristics of the Perceived
It may defy logic and objectivity but we cannot deny that our perceptions about others are influenced by their physical characteristics such as appearance, facial expressions, age, gender, manner of communication as well as personality traits and other forms of behaviors.

Thus, People interpret the meaning of what they have selectively perceived and organized in terms of their own assumptions of people, things and situations. They make attribution while interpreting data. Individuals also tend to be judgmental and distort information while interpreting events. Thus, subjectivity judgmental attitudes distortion or totally ignoring some stimuli could very bias our interpretational of the data that we selectively perceive and organize conveniently to suit our cognitive process.

3. The characteristics of the Situation
The Physical, social, organizational setting, in which an event occurs, as well as the timing of events, can influence how we interpret stimuli. Location of a given event is also an important factor in determining behavior. For e.g. you will behave with your boss differently at a social function than in office.