WELCOME

DECISION MAKING

Present by GROUP 11:

Anu Maria Sam

Dinesh Dileep,

Mithu G Jose

Shravan C R
 INTRODUCTION

Decision making is the process of selecting a logical choice from the available
option, two or more alternatives. It is the process of examining your possibilities
options, comparing them, and choosing a course of action. It is the process of
making choices by identifying a decision, gathering information, and assessing
alternative resolutions. Using a step-by-step decision making process can help
you make more deliberate, thoughtful decisions by organizing relevant
information and defining alternatives.
 Definition

A decision is a choice made between two or more available alternatives. Decision

making is the process of choosing the best alternative for reaching objectives.

(samuel c. certo, 2003)

Types of Decision Making
1.Routine and Basic Decision

2.Personal and Organizational Decision

3.Individual and Group Decision

4.Tactical and Strategic Decision

5.Programmed Decision and Unprogrammed Decision

6.Rational Decision and Irrational Decision

Routine and Basic Decision making

Routine decision making means such decision,which are taken in respect of

the day to day activities of the organization and which require less thinking and
advice.these are of a repetitive nature.

Basic decision making means such decision that are essential for the existence
of the organisation and for which complete study, analysis,power,and critical
thinking are essential.
2.Personal and Organizational Decision Making

The decision which are taken by any person in his personal capacity,and not
as a member of the organization are know as a personal decision.

Organizational or institutional decision are which are taken by the executives or

officers in their formal capacity and which may be delegated to other person.such
decision directly affect organizational behaviour.
3. Individual and Group Decision Making

When the size of the business unit is small and the decision to be taken do not
require high,specific and technical knowledge,then the decision for various
problems are normally taken by the managers himself.

Group decision making means such decision which are not taken by a single
individual,but by a group.
4.Tactical Decision and Strategic Decision Making

Operational or tactical decision relate to the present issues or problems. The

main purpose is to achieve high degree of efficiency.For these decision,the option
are limited and do not require much analysis and evolution.

Strategic decision are those decision that have an influence over

years,decades,and even beyond the lifetime of the project.Once a strategic
decision is made, it is very unlikely to be altered in the short term.
5.Programmed and Non-Programmed Decision:

Programmed decision are repetitive in nature.Such decision deal with

simple,common,frequently occuring problems that have established
procedures.These decision are taken based on the existing policy,rule or
procedure of the organization.

Non-programmed decisions are not routine in nature. They are related to

exceptional situations for which there are no established procedure.
6. Rational and Irrational Decision Making

Rational decision making is a multi-step process for making choices between

alternatives.The process of rational decision making favours logic, objectivity,
and analysis over subjectivity and insight.

An irrational decision is a decision that goes against or counter to logic.

Summing-up: Rational decision are carefully considered and negative outcomes
are weighed. Non rational decision are based on intuitive judgement.Irrational
decision are made in haste and no outcomes are considered.
COGINATIVE
A cognitive bias is a systematic error in thinking that occurs when

people are processing and interpreting information in the world around

them and affects the decisions and judgments that they make. The human

brain is powerful but subject to Limitaion.

DECISION MAKING STYLE
Decision making style basically depends on managers’
approach to decision making. Decision making can be grouped into
four main styles. They are:
>Directive style
>Analytic style
>Conceptual style
>Behavioral style
Analytical Style
Analytical decision-makers carefully analyze data to come up

with a solution. These decision-makers are task-oriented, but have a

high tolerance for ambiguity. Analytical decision-makers take time

to compile data and evidence before they come to a conclusion.

Directive Style
The directive decision-making style uses quick, decisive thinking to
come to a solution. They are focused on the task and will use their
own knowledge and judgment to come to a conclusion with selective
input from other individuals.When the team or organization needs a
fast decision, a directive-style decision-maker can effectively make
a choice. Their style is valuable for making short-term decisions.
Conceptual Style
Those who make decisionsare social-oriented and take time to
consider big ideas and creative solutions. Their conclusions
come from visualizing different opportunities
with a conceptual style are
willing to take risks. are social-oriented and take time to
consider big ideas and creative solutions. Their conclusions
come from visualizing different opportunities and outcomes
for the future. They are strong in making long-term decisions.
Behavioral Style
A behavioral style of decision-making focuses on relationships

more than the task. It evaluates the feelings of others as part of their

decision-making process. Their decisions are often based on how the

choice will impact relationships.

PROCESS OF DECISION MAKING
1.AWARNESS OF THE PROBLEM
At this stage the decision maker becomes aware about a
problem that is to be solved.

2.Diagnose and State the problems

The decision maker understands and analyses the problem and
attempts to describe the problem and objectives that are to be
achieved through solution.
3.DEVELOP THE ALTERNATIVES
This stages involves collection of data regarding the problem and
formulation of different alternate course of action that can be
followed to solved the problem.
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4.EVALUATE THE ALTERNATIVE
This step involves evaluation of the various alternatives on the basis
of the fesibility of a particular action, market and business
situation,resource of the organisation,time period in which the
objectives has to be achieved etc.
5.SELECT THE BEST ALTERNATIVES

After analysing and evaluating the possible outcomes of each course

of action the most suitable ,feasible and profitable option is selected.
6.IMPLEMENT AND VERIFY THE DECISION

The next step involves implementing the decision and making sure
that the selected course of action meets the expected outcomes.
Follow up strategies are prepared to react towards any counter moves
of others affected by the decision.
BARRIERS OF DECISION MAKING

● Level of Decision Making Not Clear

● Lack of Time.
● Lack of reliable data.
● Risk-Taking Ability.
● Too Many Options.
● Inadequate Support.
● Lack of ReSources.
● Inability to Change.
Different Models of Decision Making
1. Classical Model
2. Administrative models
3. Behavioural model
4. Political model
5. Rational decision making models of individual
6.Non-Rational decision making models of individual
7. Simon’s model of decision making
CONCLUSION
Decision making involves commitment of the organisation, 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

organisational problems and attempt to solve it. It is carried out at all

management levels in an organisation.