Decision Making

Lingayas Vidyapeeth

Submitted To – Ms. Savita Yadav

Submitted By- Gunjan
Roll No- 16BMI24M
BMI 8th Semester
STRATEGIC HUMAN RESOURCE
MANAGEMENT(SHRM)
 DEFINITION- DECISION & DECISION
MAKING

• A decision is a choice made between two or more

available alternatives.

• Decision making can be defined as a process of

choosing between alternatives to achieve a goal. It
is the process by which an individual chooses one
alternative from several to achieve a desired
objective.
 MANAGERIAL DECISION MAKING

Decision making: The process by which managers respond to

opportunities and threats by analyzing options, and making
decisions about goals and courses of action.
• Decisions in response to opportunities: Managers respond
to ways to improve organizational performance.
• Decisions in response to threats: It occurs when managers
are impacted by adverse events to the organization.
 TYPES OF DECISION MAKING

Decisions taken by managers may be classified under various categories

depending upon the scope, importance and the impact that they create in
the organization.
The following are the different types of decisions:
• Programmed and Non-programmed
• Operational and strategic
• Organizational and personal
• Individual and group
 I. PROGRAMMED AND NON-PROGRAMMED
DECISIONS

Programmed Decisions:
• Programmed decisions are normally repetitive in nature.
• Easiest to make
• Usually these decisions are taken in consultation with the existing policy, rule or
procedure.
• Example: making purchase orders, sanctioning of different types of leaves,
increments in salary etc.

Non-Programmed Decisions:
• Non-Programmed decisions are different in that they are non-routine in nature
and unusual situations that have not been often addressed.
• No rules to follow since the decision is new
• These decisions are made based on information, and a manger’s intuition, and
judgment
• Example: Should the firm invest in a new technology?
 II. OPERATIONAL AND STRATEGIC DECISIONS

Operational Decisions:
• Operational or Tactical decisions relate to the present.
• The primary purpose is to achieve high degree of efficiency in the company’s
ongoing operations.
• Example: Better working conditions, effective supervision, better maintenance
of the equipment etc.
• The focus in the operational decisions is on the short-run.
Strategic Decisions:
• Expanding the scale of operations, entering new markets, changing the product
mix, shifting the manufacturing place from one place to other etc. Are strategic
in nature.
• Such decisions will have far impact on the organization.
• Strategic decisions require extensive deliberations and huge resources and are
taken by top level managers.
• It is on the long-run in the case of strategic decisions.
 III. ORGANIZATIONAL AND PERSONAL DECISIONS

Organizational Decisions:
• Decisions taken by managers in the ordinary course of business in their
capacity as managers relating to the organizational issues are
organizational decisions.
• Example: Decisions regarding introducing a new incentive system,
transferring an employee, reallocation etc. Are taken by managers to
achieve certain objectives.
Personal Decisions:
• Managers do take some decisions which are purely personal in nature.
However, their impact may not exactly confine to their selves and they
may affect the organization also.
• Example: The manager’s decision to quit the organization, though
personal in nature, may impact for the organization.
 IV. INDIVIDUAL AND GROUP DECISIONS

Individual Decisions:
• It is quite common that some decisions are taken by a manager
individually while some decisions are taken collectively by a group of
managers.
• Individual decisions are taken where the problem is of routine nature.
Group decisions:
• Important and strategic decisions which have a bearing on many
aspects of the organization are generally taken by a group.
• Group decision making is preferred these days.
• It contributes for better coordination among the people.
 CHARACTERISTICS OF DECISION MAKING

• Decision making is a continues process

• Decision making is always purposive in that decisions should aim at
achieving some purposes.
• Decision-making is all pervasive in the sense that all levels of
managers take decisions, though at the impact and scope of decisions
vary.
• From various courses of action, it is a process of choosing a particular
course of action.
• It is always related to situation in which a manager may take one
decision in a particular set of circumstances and another in a different
set of circumstances.
• This involves certain specific purpose in which these may just be
decisions not to decide.
 DECISION MAKING STEPS

Recognize
Recognize need
need for
for aa
1.Recognize need for a decision: Managers must first decision
decision

realize the need for which a decision must be made.

Frame
Frame the
the problem
problem

2. Frame the problem: Managers must frame problem

for which decision is to be made. Generate
Generate and
and assess
assess
alternatives
alternatives

3. Generate alternatives: Managers must develop

Choose
Choose among
among alternatives
feasible alternative courses of action. alternatives

• If good alternatives are missed, the resulting decision

is poor. Implement
Implement chosen
chosen
alternative
alternative
• It is hard to develop creative alternatives, so
managers need to look for new ideas. Learn
Learn from
from feedback
feedback
Evaluate alternatives: What are the advantages and disadvantages
of each alternative?
• Managers should specify criteria, then evaluate.

4. Choose among alternatives: managers rank alternatives and

decide.
• While ranking, all information needs to be considered.
5. Implement choose alternative: managers must now carry out
the alternative.
• Often a decision is made and not implemented.
6. Learn from feedback: managers should consider what went
right and wrong with the decision and learn for the future.
• Without feedback, managers never learn from experience and
might repeat the same mistake.
 DO’S AND DON’TS OF DECISION MAKING

Decision-making always involves an element of risk. There is the possibility

that a decision can end up being the wrong course of action. However by
following some steps and avoiding others, successful decision making can be
approached with more confidence and be more easily achieved.
The "Do's" of successful decision-making include:
•  Do identify why the decision needs to be made- Making choices arises
when a situation needs to be addressed.
•  Do gather all the information necessary to make the decision- Missing
important information may lead to an unsuccessful decision, or a one
made for the wrong reasons. Make sure you have all the details before
making a choice.
•  Do consider all the possible outcomes- List all the possible decisions that
you could make in the situation.
• Do decide if group input would benefit- Sometimes it is
effective to involve others in the decision making process. 
• Do draw on past experiences- Have you had to make a
similar decision before? Was the outcome successful? What
did you learn?
• Do choose and execute the best outcome- Taking strong,
confident action is one of the key aspects to successful
decision-making.
• Do get feedback from others once the decision has been
implemented- This will help you judge whether it has been
successful, and provide valuable information for future
choices.

“Listen to advice and accept instruction, and in the end you will be wise.”
 THE DON'TS OF SUCCESSFUL DECISION-MAKING INCLUDE-

• Don't feel pressured to make a decision too quickly- Good decisions need to be

made once all the necessary information has been gathered and critically
analyzed.
• Don't doubt your ability- Making a strong decision can be hard. It can have
negative effects on those involved, making it hard to remain confident in your
ability to make the best decision
• Don't procrastinate- Most decisions are made with the desire to make the "right"
and "best" choice. This can lead to hesitation and procrastination. However,
delaying a choice through hesitation can often do more damage. A choice made
with strength and conviction will often result in success.
• Don't make a decision influenced purely by your emotions-  Although there is
definitely a place for emotional decision-making, making a choice when one is
feeling angry, threatened or another strong form of emotion often leads to a lack
of rationale and clarity.
• Don’t be tempted to take shortcuts- Shortcuts will get you where you don’t want
to go – but only faster.