Decision Making

Decision Making as a
Management Responsibility

 Decisions must be made at various levels in the workplace.

 Decision-making is a responsibility of the engineer manager.
 Management must strive to choose a decision option as correctly as possible.
 Higher Management level = bigger and the more complicated decision making becomes.
What is decision making?
PROCESS OF IDENTIFYING AND CHOOSING ALTERNATIVE COURSES OF ACTION
IN A MANNER APPROPRIATE TO THE DEMANDS OF THE SITUATION.

 Decisions are made at various management levels and various management functions (planning,
organizing, leading, and controlling.
 Decision-making is the heart of all the management functions. (Nickels & McHugh, 2010)
Decision Making Process
Rational decision-making model. (Nickels & McHugh, 2010)

 Define the situation

 Describe and collect needed information
 Develop alternatives
 Develop agreement among those involved
 Decide which alternative is best
 Do what is indicated
 Determine whether the decision was a good one, and follow up.
Define the situation
Diagnose Problem

 Identification of the problem is tantamount to having the problem half-solved. (Charles Kettering)
 A problem exist when there is a difference between an actual situation and a desired situation.
(Schermerhorn, Jr, 1986).
Describe and collect needed information
Analyze the Environment

 Environment where the organization is situated is very significant in success or failure of the
organization.
 Objective is to identify constraints, which may be either internal or external limitations.
 Internal – Limited Funds, Limited Training, Ill-designed facilities.
 External – Patents are controlled by other organizations, market limitations, regulations.
Develop alternatives
Develop agreement among those involved
Decide which alternative is best
Viable alternatives

 Problems may be solved by any of the solutions offered.

 Evaluation of alternatives.
 Selection of best alternative.
Do what is indicated
Implement Decision

• Refers to carrying out the decision so that the objectives sought will be achieved.
• A plan must be devised to make implementation effective.
• At this stage, resources must be made available.
• Who will be involved in implementation must understand and accept the solution.
Determine whether the decision was a
good one, and follow up.
Evaluate and Adapt Decision Results

• Results expected may or may not happen.

• Control and feedback mechanisms should be in place to ensure results and to provide information for
future decisions.