8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

Overview / Notes / Projects / Ebooks / Contact    

Canadian University Dubai

127+ Student Nationalities

BBA|MANTRA Facilitating Early Admission Procedures For High School Students, Contact
Today!
enrol.cud.ac.ae

OPEN

HOME NOTES PROJECTS ENOTES  BLOG INTERNSHIP COMPETITIVE EXAMS ABBREVIATIONS RECOMMENDED BOOKS MORE 

DECISION MAKING – TYPES, PROCESS, TECHNIQUES, Get All Notes in Your Inbox

IMPORTANCE Subscribe now and be the first to receive all the

latest updates!

 Name

 Email

Decision Making refers to a process by which individuals select a particular course of action among Subscribe Now
several alternatives to produce a desired result. The main purpose of decision making is to direct the
We don't spam. We Educate.
resources of an organization towards a future goals and reduce the gap between the actual position and
the desired position through effective problem solving and exploiting business opportunities.

A decision is a choice made from various available alternatives.

Decision making involves commitment of the organization, its employees and its resources, towards a
particular course of action among various alternatives available to achieve some predetermined
objectives. Decision Making helps managers to identify organizational problems and attempt to solve it.

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 1/9

8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

It is carried out at all management levels in an organization. Decisions that are taken in an organization
are usually related to –

Goals and objectives of the organization

Organizational structure
Organizational design
Budgets
Time period
Staff – salaries, wages, working hours, promotion, demotion
Marketing Mix – Product, Price, Place, Promotion
Research and design

Decision Making Process

CHOOSE YOUR SUBJECT

Advertising Management (20)

Articles (267)
Banking and Insurance (22)
Blog (36)
Business & Entrepreneurship (6)
Business Communication (15)
Business Environment (21)
Business Ethics (2)
Business Law (1)
Business Statistics (49)
Company Law (14)
Computer Applications (9)
Consumer Behaviour (22)
Cost Accounting (3)
E-commerce (8)
Entrepreneurship (11)
Financial Accounting (2)
Financial Management (26)
Financial Services (19)
Human Resource Management (18)

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 2/9

8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

Income Tax (2)

International Business (13)
Investment Analysis & Portfolio Management (10)
IT & Technical Skills (5)
Macro-Economics (9)
Management Accounting (18)
Management Information System (4)
Managerial Economics (2)
Marketing & Advertising (7)
Marketing Management (18)
Marketing of Services (6)
Micro-Economics (2)
Operations Management (2)
Organizational Behaviour (7)
Personal Finance (2)
Principles of Management (9)
Project Management (11)
Projects and Presentations (33)
Public Finance (11)
Research Methodology (9)
Rural Marketing (1)
Strategic Management (14)

RECENT POSTS

Merchant Banking – Meaning, Signi cance, Functions

At this stage the decision maker becomes aware June 28, 2020
Awareness of the Problem
about a problem that is to be solved.

The decision maker understands and analyses Retail Banking and Retail Lending
June 27, 2020
the problem and attempts to describe the
Diagnose and State the Problem
problem and objectives that are to be achieved
through solution. Bank Mandate, Power of Attorney, Banker`s Lien, Right
to Set-off, Garnishee Order and Attachment order
Develop the Alternatives This stage involves collection of data regarding June 27, 2020
the problem and formulation of different alternate

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 3/9

8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

course of action that can be followed to solve the Banking Instruments & Banking Transactions
June 27, 2020
problem.

This step involves evaluation of the various

Corporate Banking – Services, Clientele, Products &
alternatives on the basis of the feasibility of a
Pricing
Evaluate the Alternative particular action, market and business situation, June 22, 2020
resources of the organization, time period in
which the objective has to be achieved etc. Classi cation of Loans
June 22, 2020
After analysing and evaluating the possible
outcomes of each course of action the most
Select the Best Alternative KYC – Know Your Customer – Meaning, Objectives,
suitable, feasible and profitable option is
Norms
selected.
June 21, 2020

The next step involves implementing the decision

How to Open a Bank Account?
and making sure that the selected course of
June 21, 2020
Implement and Verify the decision action meets the expected outcomes. Follow up
strategies are prepared to react towards any
counter moves of others affected by the decision. Types of Bank Accounts – Indian Banking
June 21, 2020
Decision Making is a continuous process, hence
a feedback from all the parties involved with
(RBI) Reserve Bank of India – Functions, Management,
implementing the decision is taken. Feedback
Powers, etc.
Feedback may reveal another problem created due to
June 5, 2020
implementation or hindering effective
implementation, which calls a new decision and
so on.

Types of decisions

Basic decisions Routine decisions

Decisions concerned with unique problems and Decisions that have to be made during the
situations an organization is facing, that require normal course of a business, that are repetitive in
large investments. E.g. Launch of a new product nature and require small investments.

Personal decisions Organizational decisions

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 4/9
8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

Informal Decisions that a person makes as an

Formal Decisions that a person makes as a
individual, and not as a member of an
member of an organization using formal authority,
organization which do not directly affect the
which directly affect the organization.
organization.

Individual decisions Group decisions

Decisions taken by a group or a committee

Decisions taken by a single individual during
formed for a specific purpose to make an
regular routine work according to the policies of
important and informed decision for the
the organization.
organization.

Rational decisions Irrational decisions

Decisions made after careful and systematic

Decisions based on intuition or experience of the
analysis of a problem and evaluation of several
decision maker and not based on relevant facts
alternatives based on rational and logical facts
and figures.
and figures.

Programmed decisions Un-programmed decisions

Decisions concerned with unique problems faced

Routine and repetitive decisions made by lower
by an organization for which no pre-established
level executives using pre-established rules and
rules and procedures have been made. Such
procedures that require little time and effort and
decisions are complex, demand lot of time and
are easy and simple to make.
effort and have a long term impact.

Difference between Programmed and Unprogrammed Decisions

Programmed Decisions Un-Programmed Decisions

Concerned with routine problems Concerned with Unique problems

Repetitive in nature Non repetitive in nature

Structured Unstructured

Simple and have a small impact Complex and have a long term impact

Pre-established policies and procedures are used Not used

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 5/9

8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

Information regarding these problems is readily available Not easily available

Consumes less time and efforts Demands time and discretion

Lower Executives Top Management

 Various Techniques of Decision Making

Group Discussions
Brainstorming
Delphi technique
Marginal Analysis
Cost-Benefit Analysis
Ratio Analysis
Financial Analysis
Break-even Analysis
Operations research
Pareto Analysis etc.

Importance of Decision Making

Optimum and efficient utilization of resources

Aids in Problem solving and facing business challenges
Helps in business growth and achieving objectives
Facilitates effective management and Innovation
Motivates employees and improves overall business performance

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 6/9

8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

 Subscribe 

Join the discussion

{} [+] 

2 COMMENTS   Oldest 

Aditi  11 months ago

Please elaborate techniques of decision making

0 Reply

mirketa  8 months ago

Thanks for sharing

0 Reply

SEARCH FOR NOTES SELECT SUBJECT USEFUL LINKS

Select Category Course Overview

 Type Search Term …
Buy Notes & Books

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 8/9

8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

CUD® Virtual Open House Types of Services & Innovation System Organizational Behaviour
- Portal to Canadian Classification of Services Coaching - For CEOs, Archives
Education Innovation Leaders
Ad enrol.cud.ac.ae bbamantra.com Ad bensywulka.com bbamantra.com

Higher Digital Leadership Styles - Types Self Development & Social Responsibility of a
of Leadership Styles Communication business
Relationship
Ad Higher Digital bbamantra.com bbamantra.com bbamantra.com

BY: BBAMANTRA / IN: ARTICLES, PRINCIPLES OF MANAGEMENT / WITH: 2 COMMENTS

Previous Post: Inflation Accounting – Meaning, Techniques – Short Note

Next Post: Resistance to change – Levels, Overcoming Resistance

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 7/9

8/11/2020 Decision Making - Types, Process, Techniques, Importance - BBA|mantra

Recommended Books
Publish Your Article
Dont Miss Latest
Request a Topic Updates
Competitive Exams Subscribe Now and Get the latest
updates in your inbox.
Video Tutorials
Internships  First Name
Abbreviations
BBA Notes  Your Email

Subscribe Now

We don`t spam. We educate.

BBA|MANTRA LEGAL MENU

Find a reliable collection of Management Sitemap

Notes, Ebooks, Projects, Presentations, Who We Are
Video Tutorials and lot more, compiled Reach Us
from a variety of books, case studies, Terms & Conditions
guidance from management teachers Privacy Policy
and of course the internet to make your References
management studies a joyride. Disclaimer

© 2019 BBA|mantra | All Rights Reserved

https://bbamantra.com/decision-making-process/#:~:text=The main purpose of decision,made from various available alternatives. 9/9