DECISION MAKING

PRESENTED BY:-
SWATI GAUTAM
RANJIT S. TOMAR
TUFAIL FEROZ
 DECISION - MAKING
 QUOTE:-
Be sure you are right and - then go ahead.
Davy Crocket.

 MEANING:-
The process of examining your possibilities
options, comparing them and choosing a
course of action.
PHASES OF DECISION-MAKING

PHASE – 3
PHASE – 1 PHASE – 2
SELECTION
IDENTIFICATION DEVELOPMENT
1. Judgment
1. Recognition 1. Search
2. Analysis
2. Diagnosis 2. Design
3. Bargaining
 TYPES OF DECISION-MAKING

 PROGRAMMED DECISIONS : Involve

routine problems that arise regularly and can
be addressed through standard responses.

 NON PROGRAMMED DECISIONS : Involve

non routine problems that require solutions
specifically tailored to the situation at hand.
 TYPES OF PROGRAMMED
DECISIONS

 POLICY : A general guideline for making a

decision about a structured problem.

 PROCEDURE : A series of interrelated steps

that a manager can use to respond to a
structured problem.

 RULE : An explicit statement that limits

what a manager or an employee can or
cannot do.
 DECISION MAKING PROCESS

 IDENTIFYING THE PROBLEM.

 IDENTIFY THE DECISION CITERIA.
 ALLOCATING WEIGHTS TO THE CRITERIA.
 DEVELOPING ALTERNATIVES.
 ANALYZING ALTERNATIVES.
 SELECTING THE ALTERNATIVE.
 IMPLEMENTING THE ALTERNATIVE.
 EVLUATING THE DECISION’S EFFECTIVENESS.
DECISION MAKING CONDITIONS
 CERTAINITY : A situation in which a manager can
make an accurate decision because the outcome
of every alternative choice is known.
 RISK : A situation in which a manager is able to
estimate the likelihood of outcome that result
from the choice of particular alternative.
 UNCERTAINITY : A situation in which limited
information prevents estimation of outcome
probabilities for alternatives associated
with the problem and may force managers or
rely on intuition, hunches, and “gut feelings
 DECISION MAKING STYLES

 DIRECTIVE

 ANALYTIC

 CONCEPTUAL

 BEHAVIORAL
 CHACTERISTICS OF EFFECTIVE
DECISION MAKING
 It focuses on what is important
 It is logical and consistent.
 It acknowledges both subjective and objective
thinking and blends analytical with intuitive
thinking.
 It requires only as much information and analysis
as is necessary to resolve a particular dilemma.
 It encourages and guides the gathering of
relevant information and informed opinion.
 It is straightforward,reliable, easy to use, and
flexible.
 ADVANTAGES /
DISADVANTAGES
 More complete  Time consuming.
information.  Domination by a
 Diversity of few.
experience.  Pressure to
 Generation of more conform.
alternatives.
 Solutions more
likely to be
accepted by those
concerned.
THANK
YOU