CHAPTER II

DECISION-MAKING

Decision-Making
the process of identifying and choosing

alternative courses of action in a manner

appropriate to the demands of the situation.
the thoughtprocess of selecting a logicalchoice

from the availableoptions.

thecognitive process resulting in the

selection of a course of action among several

alternative scenarios.

Decision-Making as a
Management
Decisions must be made at
Responsibility

various
levels in the workplace. They are
also made at the various stages in
the management process. If certain
resources must be used, someone
must make a decision authorizing
certain persons to appropriate such
resources.

Decision-Making Process
Rational decision-making, according to David H. Holt is a
process involving the following steps:
Diagnose a problem
Analyze environment
Articulate problem or opportunity
Develop viable alternatives
Evaluate alternatives
Make choice
Implement decision
Evaluate and adapt decision results

Approaches in Solving
Problems
Qualitative evaluation

refers to evaluation of alternatives using

intuitions and subjective judgment.

Quantitative evaluation
refers to the evaluation of alternatives

using any techniques in a group

classified as rational and analytical.

Stevenson
states
that
the
managers
tend to use the
qualitative approach when:
the problem is fairly simple.
the problem is familiar.
the cost involved are not great.
immediate
decisions
are

needed.

Quantitative Models for

Here are some types of quantitative techniques
Decision-Making
useful in decision-making process:

Inventory models
Queuing theory
Network models
Forecasting
Regression analysis
Simulation
Linear programming
Sampling theory
Statistical decision theory

END