Lecture 3

Decision Making
Introduction:

Decision making is the fundamental process of

management. Most of the efforts of Managers
are related to this process. Unfortunately,
decisions do not always trun out as planned.

Who make decision?

 only executive make decisions.
 only the managers task

( to make decision is a specific task)

Effective Decisions

What is Decision?
 Is a judgement
 A choice between alternatives
 Rarely a choice between right or wrong
 Based on the highest level of conceptual
understanding.

Managers who make effective decisions know

that one does not start with facts, one starts
with opinions.
 The main task of a manager is not
administration. It is the making of
policy, the making of the right
decision.

 The first rule in decision making is

that, one does not make a decision
unless there is disagreement. Right
decision demands adequate
disagreement first.
The Effective Managers

 Expected to make effective decisions

 Does not make a great many decisions.
 Know that the decision must be based on
principle and should be made on the merits
of the case.
 Insist on alternatives, so that he can make the
most appropriate one.

Decision maker perhaps reviews of the situation may

reveal the following
1. An error in the actual implementation
2. An error in calculation.
Decision Process
1. Indentify the problem
2. Specify objectives and the decision
criteria
3. Develop alternatives
4. Analyze and compare alternatives
5. Select the best alternatives
6. Implement the choosen alternative
7. Monitor results to ensure the desired
results are achieved.
The decision maker must identify the
criteria by which proposed solutions
will be judged.
1. Capital
2. Time
3. Profits
4. Maintenance
5. Return of investments
6. Increase in cost
7. Risks
Reasons why Manager insist on
Disagreement before Decision Making.

1. It is only the safeguard against the

decision maker’s becoming the
hostage of the organization.
2. Disagreement alone can provide
alternatives to a decision.
3. Disagreement is needed to stimulate
the imagination
Reasons for Poor Decisions

1. Errors made in the decision process

2. Bounded rationality
3. Sub-optimism

Elements of decision Process

1. See if the problem was generic and could
only be solved through a decision
established by a rule, or principle.
2. Define the specifications which answer to
the problem had to satisfy, that is, of the
boundary conditions.
Elements of decision Process
3. The thinking through what is right,
that is, the solution which will satisfy
the specifications before attention is
given to the compromesis, adaptations,
and concessions needed to make
decision acceptable.
4. The building into the decision of the
action to carry it out.
5. The feedback, which test the validity
and effectiveness of the decision
against the actual course of events.
Second Element in the Decision Process
1. What the decision has to accomplish?
2. What are the objectives, the decision has to
reach?
3. What are the minimum goals it has to
attain?
4. What are the conditions it has to satisfy?

In Science this is known as the “Boundary

Conditions.”

The Major Element in Decision Process

 Converting the decision into action.
Budgeting the Time
Effective Managers know that:
 Time is a limiting factor
 Time is a unique resource
 Time is absolutely irreplaceable

Note:
 The main task in the work of a manager is the
time spent working with people
 Relations with other knowledge workers are really
time consuming
 Mixing personal relations and work relations is
time consuming.
 People decision is time consuming
First Things First
 The one secret of effectiveness is
concentration.
 Effective managers do first thing first and
they do one thing at a time.
No matter how the manager manages his time,
the greater part of it will still not be his own.
“There is always a time dificit.”

TIMING is the most important element in the

success of any effort
Employee Discipline

Discipline is the means that management uses to

bring employees behavior under control.

Control within this context has three major

dimensions:
1. As a means of establishing awareness on the
part of the employees regarding the proper
behavior, attitude, and conduct in their jobs.

2. As a means of establishing an atmospher

conductive to working together efficiently.

3. As a means of correcting or reforming

employees who commit dimensions:any infraction
or violation of company rules and regulations.
Principles of Discipline
1. Disciplinary action should not be taken
unless there is an obvious necessary for it.

2. The reason for disciplinary action should be

made clear.

3. Give the man a chance to present his side of

the story, and do not argue.

4. There should be no favoritism or

discrimination in any disciplinary action.
5. Reprimand should be given as soon as
possible after the occurance of the act.

6. Forgive and forget.

7. Never discipline anyone in the presence of

others.

8. The discipline that is inflicted must be just,

but suffeciently severe to meet the
requirements of the situation.
9. Disciplinary measure should be applied by
the immediate superior of the employee
affected, rather than by some other higher
executive.

10. In general, negative disciplinary action

cannot be successfully applied to large groups
of employees representing a substantial
portion of one’s organization.

11. In determining the nature and degree of

disciplinary action that is made necessary by
some improper act of an employee, the intent
should be considered.
12. Discipline should be constructive.

13. Except in cases of extremely serious offenses,

no disciplinary action should be permitted to take
place until the supervisor has actually talked the
situation over with the employee.

14. Discipline should not be administered on an

entirely routine bais.

15. Maintain a constant and sincere interest in your

people’s welfare on and off the job.

16. Motivation is the secret of good discipline.

 End of Lecture 3

Activity/ Output: ( By group)

Read an article about decision making of a

business related to Construction and other related
Civil Engineering Services.
a. Note the title of the article, author, and
publication date.
b. Digest according to what you understand
about this Lecture 3.
c. Present in class with presentation slides.

Preared by:
Engr. Jane K. Zaportiza
CE413 Instructor