The influence of management typology on the development of management decisions. Management decisions
Typology of problems of management decisions.
In management activities, there are four classes of the most common problems;
1. Standard problems. They require the application of instructions established by the head of the rules for their decision. Example - the hiring or dismissal of employees in an organization.
2. Well structured problems. They have quantitative characteristics and indicators. Economic and mathematical methods are most often used to solve them. Example - calculating the efficiency of personnel in a small organization depending on specific performance indicators of the personnel and the organization (enterprise)
3. Weakly structured problems. They have not only quantitative, but also qualitative characteristics. To solve them, as a rule, a systematic approach is used. An example is forecasting the labor market or population migration in a region.
4. Unstructured problems. Their solution is possible on the basis of expert assessments and professional judgments, since these problems usually involve little-studied (unstudied) processes. Example - investment activity in a region with a still uncertain or unstable economic situation
Signs of typology and classification of management decisions.
In management theory, the following types of SD are distinguished:
– programmed, which are developed on the basis of mathematical laws;
– unprogrammed, to which strict mathematical methods should not be applied due to the presence of factors of unpredictability and uncertainty;
– compromise SDs that affect the interests of several parties (teams, organizations, regions, states) and are developed by representatives of these parties from the position of taking into account mutual interests and finding consensus (SDs that satisfy all parties with some losses);
– intuitive UR, accepted on the basis of insight, intuition, “sixth sense”;
– SD based on judgments (common sense, experience, statistics, logic of reasoning);
– rational SD, the adoption of which is based on a certain algorithm of sequentially performed stages, the use of a systematic approach, analysis of pre-selected alternatives of possible solutions and selection of the most suitable one for a given specific situation alternatives.
SD classification is carried out according to the following main characteristics.
Functional focus. SD is distinguished in the scope of general, connecting and private (specific) management functions. General management functions: planning, organization, motivation, control. The connecting functions of management are communication and decision making. Particular control functions are determined by the specifics of the control object.
Development organization. There are individual, collegial, collective and corporate SD.
Providing management. The following supporting subsystems for managing a social sector object are distinguished: a) organizational, legal and methodological support; b) information support; c) technical support; G) software; d) resource provision.
Action time. On this basis, strategic, tactical, and operational SDs are distinguished.
Reasons for the need for SD. On this basis they distinguish:
a) situational SD, caused by the creation of an undesirable (conflict) situation at the control object for any of the control functions;
b) by order of senior management, which outlines new tasks or more stringent deadlines for the execution of previously issued tasks;
c) programmatic reasons necessitate the adoption of SD both for the development of the action program itself and in cases of deviations from the progress of its implementation;
d) proactive reasons characterize the attitude of the decision maker (DM) to develop an SD for the best use of available capabilities at the management object.
According to the number of criteria assessing the quality of management, accepted SDs are divided into single-criteria and multi-criteria.
According to the predictability of the results of SD implementation are divided into two types: 1) with a certain result, calculated at the stage of development and adoption of SD (this is typical for programmed decisions) and 2) with a probabilistic outcome, which is typical for objects with partial or complete uncertainty of parameters.
Typology of solutions (by methods used, by creative contribution, by the degree of formalization of the problem).
By methods used : programmable and non-programmable solutions.
Programmable solutions usually include standard and repeatable solutions. Non-programmable decisions include decisions made in new situations.
Depending from creative contribution managers in their development: routine, selective, adaptive and innovative.
1. Routine decisions are made in accordance with the established mechanism and the existing program of action. There is no need to be creative, since all solution procedures are known.
2. Selective decisions. Initiative and freedom of action at this level are manifested within limited limits.
3. Adaptation solutions are designed for additional, unforeseen difficulties. As a rule, their development combines the use of a creative non-standard approach based on new ideas with previously developed capabilities.
4. Innovative solutions are associated with the complexity and unpredictability of events. This necessitates the adoption of extraordinary decisions containing innovations.
By degree of formalization problems: well structured; poorly structured; unstructured.
1. Problems in which the dependencies between elements of the situation can receive numerical values or symbols are considered well-structured. When solving well-structured problems, quantitative methods of analysis are used: linear, nonlinear, dynamic programming, queuing theory, game theory, the methodology of which is known as “operations research.”
2. Weakly structured problems are usually complex, differing primarily in the qualitative dependencies of the elements of the situation. However, weakly structured problems contain both qualitative and quantitative elements, with the former being predominant. This is the area of application of systems analysis.
3. Unstructured (or qualitatively expressed) problems contain only a description of the most important resources, features and characteristics, the quantitative relationships between which are completely unknown. Unstructured problems are solved using heuristic methods based on intuition, logic, theoretical reasoning, experience, and professionalism of a person or collegial body of the subject of management. This is the most numerous class of problems.
Classification of management decisions (by sources, by methods of delivery, by subjects of decision-making, by degree of novelty, by development methods, by target orientation, by content of decisions, by period of validity, etc.).
UR classification:
By origin: situational, prescribed, programmatic, initiative.
By means of communication: oral and written.
By decision-making subjects: individual, collective and collegial.
According to the degree of novelty: routine (traditional) and innovative (creative).
According to the availability of information: definite, probabilistic, uncertain.
By development methods: quantitative (including mathematical programming methods, statistical methods) and heuristic (based on the use of logic, intuition, experience, and knowledge of the decision maker).
By target orientation: single-purpose and multi-purpose.
By period of validity: long-term and operational.
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Management decision- this is the choice of a management goal and the values of controlled factors that ensure the achievement of this goal.
A solution belongs to a certain type if it has any common feature, characteristic of a certain set of solutions.
By degree of development distinguish between programmed and unprogrammed decisions.
Programmed decisions are made as a result of a certain sequence of steps according to standard methods or rules that are developed in advance and applied in typical situations. Unprogrammed decisions require the development of new procedures or decision rules. Organizational leaders are forced to make unprogrammed decisions in new or unique problem situations. In these cases, there is no specific sequence of necessary actions to solve the problem.
According to the degree of justification Intuitive, logical and rational decisions can be distinguished.
Intuitive decisions are made by people based on the feeling that they are correct. At the same time, the decision maker does not consciously compare all the advantages and disadvantages of each alternative. In this case, the decision is made subconsciously, without obvious logical justification. Logical decisions are made based on knowledge, experience and logical judgment. Taking logical solutions, people turn to experience and common sense to make predictions possible consequences alternatives and justification for one’s actions in a specific situation. Rational decisions are based on an objective analysis of complex problem situations using scientific methods And computer technology. Rational decisions are considered the most reasonable, since in the process of their development and adoption all mechanisms available to humans are used - intuition, logic and calculation.
Based on feasibility There are two types of decisions - admissible and unacceptable.
Valid solutions are solutions that satisfy all constraints and can be implemented in practice. Decisions are always made under objective constraints - resource, time, legal, organizational, ethical, etc. It is within the given restrictions that the area of acceptable options for action is formed. Infeasible solutions - unrealistic solutions that do not satisfy one or more constraints
According to the degree of goal achievement: unreasonable, satisfactory and optimal solutions.
Unwise decisions- these are unacceptable decisions or decisions that do not lead to achieving the management goal. Satisfactory decisions are those courses of action that lead to the achievement of the organization's management goals. These solutions satisfy all objective and subjective constraints simultaneously and provide an acceptable, but not necessarily best result. Optimal decisions are decisions of the manager that ensure the maximum degree of achievement of the management goal. These are the best compromises resulting from careful analysis.
Based on innovativeness: routine, selective, adaptive and innovative solutions.
Routine solutions- These are well-known methods of action to resolve the problem. They represent a standard reaction to a typical situation. Selective decisions involve choosing one alternative from a specific set of courses of action. Adaptive decisions are made in conditions when the situation changes and therefore some modification of known options is required taking into account the features of the new situation. Innovative decisions are made in conditions where the problem cannot be solved using known methods of action and requires the development of fundamentally new solutions that have not been used before.
By scale of change introduced into the organization: situational and reorganizational. Situational solutions do not involve any global changes and are associated with solving current problems of the organization. Reorganization decisions involve significant changes, such as restructuring the organizational structure or choosing new strategy organizations.
By duration highlight strategic, tactical and operational decisions. Strategic decisions are aimed at achieving the long-term goals of the organization. Tactical decisions ensure the implementation of strategic ones and pursue the achievement of medium-term goals of the organization. Operational decisions are made by managers on a daily basis to achieve short-term goals and carry out ongoing work in the organization.
According to the content of the decision, they are divided into permissive, prohibitive and constructive. Allowing and prohibiting decisions are management decisions of the “yes” or “no” type, which simply give the go-ahead or impose a ban on certain proposals to solve the problem. In these cases, the leader himself does not offer anything, but acts only as a judge, accepting or rejecting the ideas of other people. Constructive solutions are proposed by the manager independently and reflect his active position in relation to the problem being solved.
Based on the number of persons Those involved in decision making are divided - individual and collective. Individual decisions are made by the head of the organization alone. The head of the organization has the right to submit any decisions for discussion in the group, consult with his subordinates, involve experts and analysts in solving the problem, but he makes the final decision independently. Collective decisions are the result of joint intellectual work of a group of people. Such decisions are made taking into account the interests and positions of all group members.
Management decisions are divided into types depending on the field of activity of the organization: production decisions (choice of production technology), marketing decisions (choice of a market segment), financial decisions (choice of the optimal portfolio of securities), personnel decisions (selection and placement of personnel) and many others .
Classification of management decisions:
1.According to the degree of influence on the future of the organization:
A) strategic (determine the general directions of development of the organization and its long term goals)
B) tactical (specific methods of achieving first)
2.by scale:
A) global – covers the entire organization as a whole
B) local – affect some aspects of the enterprise’s activities.
3.by duration of the implementation period:
A) long-term (more than five years)
B) medium-term (from 1 year to 5 years)
C) short-term (less than 1 year)
4. according to the direction of impact:
A) external
B) internal
5. according to mandatory fulfillment:
A) directive - accepted by senior management and mandatory for execution
C) orienting – determine the unified direction of activity of the organization’s subsystems
6.by functionality:
A) regulatory – determine the method of performing actions
B) coordinating – concentrate efforts around the problem
C) controlling – aimed at evaluating results
7.by breadth of coverage:
A) general – applies to the entire company
B) special – consider individual issues
8.by degree of programming:
A) programmed – accepted in standard situations
B) unprogrammed - accepted in new conditions
9.by area of implementation: scientific and marketing research, production.
10.according to methods of acceptance:
A) intuitive - accepted by the manager based on his ability to foresee results
B) adaptive - adopted in accordance with the professional and personal knowledge of the manager
C) rational - based on scientific analysis of the problem.
At the core decisions based on judgment lies knowledge, meaningful experience of the past and common sense. Characteristic for operational management.
Rational solutions based on methods of economic analysis, justification and optimization. Characteristic for strategic and tactical management.
A manager who focuses only on intuition becomes a hostage to chance, and his chances of choosing the right solution are not very high.
Management decisions are made by people, and therefore their nature largely depends on the personality of the manager directly involved in their development.
Balanced Solutions accepted by a manager who is attentive and critical to his actions, the hypotheses put forward and their testing.
Impulsive decisions characteristic of a manager who easily generates a wide variety of ideas in unlimited quantities, but is unable to properly test, clarify, and evaluate them.
Inert solutions– the result of a careful search for a manager. In them, clarifying and controlling actions prevail over the generation of ideas, where originality, innovation, and brilliance are difficult to detect.
If a manager does not need to thoroughly substantiate his hypotheses and is confident in himself, he may not be afraid of any difficulties and accept risky decisions.
Careful decisions appear when the manager carefully evaluates all options and approaches the matter critically. The solutions are not new and original.
Algorithm for making management decisions.
Decision development algorithm - a logical sequence of operations for developing a management decision. Decision-making algorithm in traditional management
Such an algorithm may include the following operations:
- problem detection;
- collection of information;
- information analysis;
- determining management goals when solving a problem;
- development of a criterion for the effectiveness of a solution;
- identification of a problem with one that previously occurred in this or another organization;
- study of techniques and their consequences used to solve a similar problem;
- forecasting by analogy with previously observed consequences of using the techniques being studied (when forecasting by analogy, it is believed that the use of those
- the same techniques will lead to the same, similar results as in the previous case);
- assessment of solution options;
- adoption, formalization, communication of the decision to the executors, its execution and, finally, monitoring the implementation of decisions.
Delegation of authority in the decision-making process.
In dynamic business conditions, it is impossible to do without delegating authority to other employees.
Sooner or later, a moment comes when all ways to optimize your time are exhausted, the process gets out of control - you urgently need to delegate some of your functions and powers!
To optimally solve this problem, ten principles of delegation have been developed.
Clear end goal
Managers must clearly establish the results they expect from the empowered subordinate. A clear understanding of what needs to be achieved and why it is important is a necessary prerequisite for delegation and empowerment.
We cannot work, study, or perform any other activities until we understand the goals and consequences of our activities.
Delegation of authority must be comprehensive
In addition to the desired end results, the manager needs to clearly define conditions under which the task must be performed.
the manager must set clear deadlines and reporting schedule.
the manager must clearly set the limits within which the employee can demonstrate your initiative.
Levels of initiative vary depending on the degree of control over the timing and scope of the task:
A.Wait for instructions on what to do.. You take certain actions only after receiving the appropriate command. This form of delegation is least related to the granting of rights, since it does not allow the subordinate to exercise his own initiative. In this case, there is no need to control deadlines (when done) or the amount of work done (what is done).
B.Ask what to do. Subordinates are given some freedom when deciding on the timing of the task, but not on its content. Subordinates can formulate their own ideas about how best to complete a task, but since they cannot take action without the manager's approval, their scope of authority is extremely limited.
B.Get recommendations, then take action. This option gives subordinates more rights, since in this case they have some freedom in setting the deadlines and content of the task delegated to them.
D. Carry out the task and immediately report the results. Subordinates are given the right to use their own initiative, but are required to report their actions to the manager so that he can ensure that the decisions they make are correct and do not conflict with other organizational objectives.
D. Get down to business, and report only as planned. Subordinates themselves control both the timing and the volume and content of the assigned task.
Invite the employee to participate in the consideration of delegation of authority
Establish parity between rights and responsibilities
The most famous and general principle of delegation of authority. In order for subordinates to succeed, they must be provided with all the rights necessary to complete the task assigned to them.
In no case should a manager give subordinates excessive rights, that is, give them unnecessary power, freedom, resources and information. Such a discrepancy leads to a decrease in the level of responsibility and abuse of authority. A manager can assign primary responsibility to subordinates, that is, responsibility for short-term (intermediate) results. They will bear this responsibility to the manager who has delegated the appropriate authority to them.
Work within the existing organizational structure
Real management decisions differ from each other. Managers occupying different positions in the organization and working in different functional areas make decisions various types. Even in one department, for example, in the personnel department, one manager can solve the problems of recruiting personnel, and another - the development of those already employed in the organization and their professional training. The two department managers will make significantly different decisions.
Implementing a policy of rapid growth of the organization and, accordingly, hiring a large number of new employees will require different decisions than if it is necessary to implement a policy of cutting costs, reducing sales volumes and laying off some staff. Thus, a certain classification of decision types is necessary to differentiate one decision from another and improve methods for making certain decisions. The complexity and variety of solutions not only presupposes, but also requires the use of various criteria for classifying solutions.
Classification of solutions is possible according to various criteria:
1. Based on the nature of the relationships, individual and program solutions are distinguished.
2. Based on the time horizon for implementation, current and future solutions are distinguished.
3. According to the degree of formalization, there are standard solutions for systematically repeating tasks and non-formalized ones, requiring the development of a special technique for a specific case.
4. Based on the type of information, a distinction is made between quantitative or qualitative decisions made on the basis of descriptive information.
5. By level, they distinguish between general organizational decisions and decisions of individual divisions related to the organization.
6. By type there are complex solutions or solutions to individual functional areas.
7. Based on the number of goals, single-purpose and multi-purpose solutions are distinguished.
8. Based on the algorithm, programmed and unprogrammed decisions are distinguished.
9. Based on the method of implementation, it is important to distinguish between mandatory or recommendatory decisions.
30. Models and organization of the process of developing management decisions
Before considering the models widely used by modern organizations and the problems for which they are most suitable, it is necessary to briefly describe the three basic types of models. We are talking about physical, analog and mathematical models.
Physical model. A physical model represents what is being studied by means of a magnified or reduced description of an object or system.
Analog model. The analog model represents the object under study as an analogue that behaves like a real object, but does not look like one. A graph illustrating the relationship between production volume and costs is an analogue model. The graph shows how production levels affect costs.
Mathematical model. A mathematical model, also called a symbolic model, uses symbols to describe the properties or characteristics of an object or event. An example of a mathematical model and its analytical power as a means of helping us understand extremely complex problems is Einstein's famous formula E = ts 2 . If Einstein had not been able to construct this mathematical model in which symbols replace reality, it is unlikely that physicists would have even the remotest idea of the relationship between matter and energy.
The number of possible specific models of management science is almost as large as the number of problems for which they were developed. Below follows general description some of the most common types.
Game theory. One of the most important variables on which the success of an organization depends is competitiveness. Obviously, the ability to predict the actions of competitors means an advantage for any organization. Game theory is a method for modeling the assessment of the impact of a decision on competitors.
Game theory was originally developed by the military so that the strategy could take into account the possible actions of the enemy. In business gamingmodels used to predict how competitors will react to price changes, new sales support companies, additional service offers, modifications and new product introductions. If, for example, management uses game theory to determine that competitors will not do the same if they raise prices, it may have to forgo this step to avoid being put at a competitive disadvantage.
Models of queuing theory. The queuing theory model or optimal service model is used to determine the optimal number of service channels relative to demand. Situations in which queuing theory models can be useful include people calling an airline to reserve a seat and obtain information, waiting in line for machine data processing, equipment repair technicians, a line of trucks to be unloaded at a warehouse, and bank customers waiting for an available teller. . If, for example, customers have to wait too long for a teller, they may decide to transfer their accounts to another bank. Queue models provide management with a tool to determine the optimal number of service channels to have to balance the costs of too few and too many service channels.
Inventory management models. The inventory management model is used to determine the timing of placing orders for resources and their quantities, as well as the mass of finished products in warehouses. Any organization must maintain some level of inventory to avoid delays in production and distribution. The purpose of this model is to minimize the negative consequences of stockpiling, which is expressed in certain costs. These costs come in three main types: ordering, storage, and losses associated with insufficient inventory levels.
Linear programming model used to determine the optimal way to allocate scarce resources in the presence of competing needs. According to a Fortune magazine survey of manufacturing vice presidents from 500 firms, linear programming and inventory management models are the most popular in industry. Linear programming is usually used by headquarters specialists to resolve production difficulties.
Simulation modeling. All of the models described above imply the use of simulation in a broad sense, since all are substitutes for reality. However, as a modeling technique, simulation specifically refers to the process of creating a model and its experimental application to determine changes in a real situation. As N. Paul Loomba points out, “The main idea of simulation is to use some device to simulate a real system in order to explore and understand its properties, behavior and characteristics.”
Simulation is used in situations that are too complex for mathematical methods such as linear programming. This may be due to excessive a large number variables, the difficulty of mathematically analyzing certain relationships between variables, or a high level of uncertainty.
