• Decision-Making in Organizations

Definition: Decision-making is the process of selecting the best course of action from available alternatives to achieve organizational objectives.

Types of Decisions:

1. Programmed Decisions – Routine and repetitive (e.g., leave approval)
2. Non-programmed Decisions – Unique and unstructured (e.g., launching a new project)

Steps in Decision-Making:

1. Identifying the problem
2. Analyzing the problem
3. Developing alternatives
4. Evaluating alternatives
5. Selecting the best alternative
6. Implementing the decision
7. Reviewing the decision

Techniques of Decision-Making:

• SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
• Cost-Benefit Analysis
• Decision Tree
• Brainstorming

Exam Point: Decision-making is a core managerial function and is closely linked with planning and problem-solving.

2. Organizational Effectiveness

Definition: Organizational effectiveness refers to how well an organization achieves its goals using available resources efficiently and sustainably.

Approaches to Organizational Effectiveness:

1. Goal Approach – Focus on achieving organizational objectives
2. System Approach – Focus on resource utilization and process efficiency
3. Strategic Constituencies Approach – Meeting needs of key stakeholders
4. Balanced Scorecard Approach – Combining financial and non-financial metrics
5. Exam Point: An effective organization aligns people, process, structure, and strategy.

3. Organizational Climate

Definition: Organizational climate is the collective perception of the work environment by employees. It affects motivation, productivity, and morale.

Dimensions of Organizational Climate:

1. Support (e.g., supervisory support)
2. Recognition
3. Trust
4. Morale
5. Conflict
6. Standards

Types of Organizational Climate:

• Authoritarian – Strict control, low participation
• Participative – Open communication, involvement in decisions
• Innovative – Encourages creativity and change
• Exam Point: Positive climate leads to higher job satisfaction and performance.

4. Organizational Development (OD)

Definition: Organizational Development is a planned and systematic approach to improve organizational effectiveness and health through interventions in processes, structure, and culture.

📌 OD Techniques / Interventions:

1. Sensitivity Training (T-groups)
2. Team Building
3. Survey Feedback
4. Process Consultation
5. Intergroup Development
6. Role Playing

 Exam Point: OD promotes continuous improvement and change readiness.

Summary Table

1. Job Satisfaction

Definition: Job Satisfaction is the emotional response an employee has towards their job based on experiences, expectations, and workplace conditions.

📌 Key Thinkers:

• Herzberg (Two-Factor Theory):
  • Hygiene Factors (e.g., salary, job security) – prevent dissatisfaction
  • Motivators (e.g., achievement, recognition) – lead to satisfaction

Exam Point: High job satisfaction leads to positive organizational behavior and employee retention.

2. Morale

Definition: Morale is the collective attitude, confidence, enthusiasm, and satisfaction of employees toward their work and organization.

Types of Morale:

1. High Morale – Enthusiastic, cooperative, loyal employees
2. Low Morale – Frustrated, indifferent, or rebellious behavior

Difference Between Job Satisfaction & Morale:

Exam Point: High morale enhances group performance, while high job satisfaction ensures individual commitment.