General Management

Rokyan Management
Consultancy
Samiullah Elam
۰۷۷۴۶۳۳۶۵۹
sami.elam(skype)
samiullahelam@gmail.com
 Decision Making
The process of identifying problems and
opportunities and then resolving them.

Decision is always taken or made when there

is some problem in the organization or
opportunity for the organization.
 Problem in the organization

When organizational goals are not achieved.

 opportunity

Chances to grow high or chances of success

 Types of decision
• Programmed or structured decision: A decision
which is made for the repetitive kind of activities in
the organization, e.g. reorder of paper and office
supplies etc.

• Non programmed or unstructured decision: A

decision which is made for the unique kind of activity
that takes place in the organization, e.g. to develop a
new product or service, build a new factory, enter a
new geographical market etc
 Conditions under which decisions are
made
• Certainty: when present and future information is
available. chance of success will be high. e.g.
depositing money in the bank account for a certain
period of time.
• Uncertainty: when the information about present
and future is not available. chances of success will be
very low.
• Risk: when the information about the present is
available but future is uncertain. Chances of success
will be 50%. e.g. changing the shape of the product
or service.
Steps in Decision making Process
Recognition of problem or opportunity

Cause and Effects

Development of alternative

Selecting the best alternatives

Implementation of best alternative

evaluation and feed back

 steps
• Recognition of problem and opportunity: to know where is the
problem and what is the opportunity?
• Diagnosis and analysis of causes: finding out the cause and
effects of the problem, cause and effect analysis.
• Development of alternatives: finding out the possible
alternatives to sort out the problem.
• Selecting the best alternative: on the basis of cost effectiveness
and time consumption.
• Implementation: taking action on the selected alternative.
• Feed back: to see whether the problem is solved or not.
 Group Decision
Two minds are better than one mind.
Interactive group decision: A group decision
making technique in which group members
through interaction makes a decision. There is
a moderator to a group who states the
problem to the group members.
Disadvantage: shy people cannot express their
selves in the group.
 Nominal group

A group decision making technique in which

group members write down their opinion on a
piece of paper and at the end every one is
asked to express himself. There is a moderator
to a group who states the problem to the
group members.