RATIONAL DECISION OF MANAGER

Presented by Mayur shah

DECISION
Decision

is a judgment that affects a course of action. It necessarily involves choices from two or more alternatives.

Decision Making
Decision making is a conscious human

process involving both individual and social phenomenon based upon factual and value premises which includes with a choice of one behavioral activity from among one or more alternatives with the intention of moving towards some desired state of affairs.

Decision making is not easy because

It must be done amid, ever-changing factors conflicting points of view unclear information limited resource like time, men ,money & material

Concept of decision and decision making

The word decision has been derived from

the latin word decidere which means a cutting away or cutting off ,or in a practical sense . Thus ,a decision involves a cut of alternatives between those that are desirable and those that are not desirable.

Types of problems decisions

STRUCTURE PROBLEM:

PROGRAMMED DECISION NON STRUCTURE PROBLEM : NON PROGRAMMED DECISION

Programmed decision
Programmed decision are routine and

repetitive and are made within the frame work of organizational policies and rules. e.g distribution of wages of different employee. To solve such cases decision making process should be used.

Non Programmed Decision

Non Programmed Decisions are relevant for solving

unique and unusual problems in which various alternatives can not be decided in advance. e.g. customer dissatisfaction In that case Manager skills and behavior are important such as, Good Communication skills Curtsy U-attitude Blame external factors.

HOW SHOULD DECISION BE MADE?

Decisions are made with the help of

Rational Decision making process.

Rational : It refers to choices that are

consistent and value maximizing.

Problem of Tikona net connection

Policy- First take money before giving net

connection. Net Plan -6 month ,512 kbps speed , in Rs. 3000 Problem - Due to some technical problem they had refused to give connection and told that they would give refund in 7 days. The customer having become angry bcoz of not having been refunded in 7 days and not getting any response from the sales man, went to the Tikona branch. Refund would be given after 30 days