Decision making

Group -9
 Kapil krishna
 Karunakar
 Rohith
 Shashi kiran
 Vaishak

vaishak 1
What is decision making?
“process by which we respond to
opportunities and threats by analyzing
options ,and making decision about goals
and courses of action”
or
“It’s the act of coming to a conclusive point
in order to solve a problem or to choose
a best route”
Or
“An essence to problem solving”
2
vaishak
Organisational Decision
making
“ the process of
responding to a problem
by searching for and
selecting a solution or
course of action that will
create value for
organisational
stakeholders”.
There are basically two
kinds of decision makings
called upon to make vaishak 3
Two kinds of decision making
Programmed and non-programmed

Programmed decision
A repetitive decision the can be handled by
a routine approach.

Shashi kiran 4
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 ( applying a policy) to a structured
problem.
Rule
an explicit statement that limits what a manager
or employee can or cannot do.

shashikiran 5
Non-programmed decisions

Decision that are unique and nonrecurring.

Decision that generate unique responses.

shashikiran 6
Programmed vs. Non-programmed Decision
Characteristics Programmed Non-programmed
decisions decision

Type of problem Structured Unstructured

Managerial level Lower level Upper level

Frequency Repetitive New,unusual

Information Readily available Ambiguous or

incomplete

Time frame Short Relatively long

Solution relies on Procedures,rules, and Judgment and creativity

policies
shashikiran 7
Types of Problems
Structured problems
• Involved goals that clear.
• Are familiar(have occurred before).
• Are easily and completely defined-
information about the problem is available
and complete.

shashikiran 8
Unstructured problems

Problems that are new or unusual and for

which information is ambiguous or
incomplete.

 Problems that will require custom-made

Solutions.

shashikiran 9
Characteristics of an 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.
karunakar 10
The Decision- Making Process

Evaluate Implement the

Define the
Alternatives chosen
Problem
Alternative

Gather facts and Follow up and

Select the best
develop evaluate the chosen
alternative.
alternatives. alternative.

karunakar 11
Steps in decision making
Step 1: Identifying the Problem.
Step 2: Identify the Decision Criteria
(Costs, Risks,Outcomes).
Step 3: Allocating Weights to the Criteria
(Assigning, correct priority of places).
• Step 4: Developing Alternatives.
Step 5 :Analyzing alternatives
(strengths andweaknesses ).

karunakar 12
Contd..
Step 6: selecting the alternative
(highest total weight is chosen).
• Step 7: Implementing the Alternative.
Step 8: Evaluating the decision’s
effectiveness .

karunakar 13
Decision-making styles
Dimensions of decision-making styles
Ways of thinking
(Rational, orderly, and consistent.
Intuitive, creative, and unique).
Tolerance of ambiguity
• Low tolerance: require consistency and
order.
• High tolerance: multiple thoughts
simultaneously.
Rohit.d 14
Decision-Making Styles
(cont’d)
Types of Decision Makers
Directive :Use minimal information and
consider few alternatives.
Analytic :Make careful decisions in unique
situations.
Conceptual :Maintain a broad outlook and
consider many alternatives in making
decisions.

Rohit.d 15
Guideline for making decision more
effective
Categorical interpretation- the problem
should be defined properly.
Application of limiting factor- limiting
factor should be taken into account in
order to analyze the external S & W.
Adequate information- more quantity of
reliable information leads to effective
decision making.

Rohit.d 16
Contd….
Considering other views- various views at
the same point are taken into account for
quality decision.
Timeliness- decision should be ,made at
proper time to meet the competitive
advantages.

Rohit.d 17
Techniques for improving decision
making
Brainstorming – idea generation for
decision making.
Nominal group technique (NGT)- problem

outlined, presentation of solution in

written form, discussion over written
solutions, and final decision.
Delphi technique- decision made on the

basis of questionnaire filled by the

respondents.
Kapil krishna 18
Contd…
Consensus mapping- decision made on
the basis of the report presented by the
representative of each group after.

Kapil krishna 19
Thank you…..

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