CHAPTER 2: DECISION-MAKING

As a Management Responsibility

What is Decision –Making?

 the process of identifying ang choosing alternative courses of action in a
manner appropriate to the demands of the situation.
Decision – Making Process
DIAGNOSE PROBLEM
- If a manager wants to make an intelligent decision, his first move must be to
identify the problem. If the managers fails in this aspect, it is almost
impossible to succeed in the subsequent steps.

ANALYZE THE ENVIRONMENT

- The environment where the organization is situated plays a very significant
role in the success or failure of such an organization. It is therefore very
important that an analysis of the environment be undertaken.

ANALYZE THE ENVIRONMENT

- Components of the Environment

 Internal environment
 External environment

 Internal Environment
Refers to organizational activities within firm that surrounds decision-
making.
  External Environment

refers to variables that are outside the organization and not typically
within the short-run control of the top management.

DEVELOP VIABLE ALTERNATIVES

Procedures:
 Prepare a list of alternative solutions
 Determine the viability of each solutions.
 Revise the list by striking out those which are not viable.

EVALUATE ALTERNATIVES
- after determining the viability of alternatives and a revised list has been
made, an evaluation of the remaining alternatives is necessary.
MAKE A CHOICE
- This is the process of selecting among alternatives representing potential
solutions to a problem.

IMPLEMENT DECISION
- This refers to carrying out the decision so that the objectives sought will be
achieved.

EVALUATE AND ADAPT A DECISION RESULTS

- In implementing the decision, the results expected may or may not happen.
It is therefore important for the manager to use control and feedback
mechanism to ensure results and to provide information for future decisions.