DECISION MAKING

Prof. Manoj Mishra, C.N.L.U.

 QUESTIONS
• PLANNING IS LOOKING AHEAD AND CONTROL IS
LOOKING BACK. COMMENT.
• PLANNING THEORY ILLUSTRATES THE OPEN-
SYSTEMS APPROACH TO MANAGEMENT.
COMMENT
• DEFINE PLANNING. DISCUSS THE ESSENTIAL
STEPS IN PLANNING.
• DISCUSS THE DIFFERENT TYPES OF PLANS &
THEIR PRACTICAL USES.
 Decision making
• Sequence
• Def: selection of a course of action from among
alternatives
• Judgement & Discretion
• Central Job for managers, judges, …
• Step in planning
• Complex: Multiple Criteria / Intangibles / Risk /
long term implications / Interdisciplinary inputs
/ Pooled decision making / Value Judgements
 Types of Decision
Making
• FROM FULLY PROGRAMMED TO NON
PROGRAMMED DECSIONS
• ORG LEVEL PROBLEM DECISION

UNSTRUCTRED NON-PROGRA
TOP
MMED
MIDDLE

LOWER STRUCTURED
PROGRAMMED
 Process of Rational
Decision Making
• CORE OF PLANNING
• PROCESS (WITH RESPECT TO GOALS)
1. PREMISING
2. IDENTIFYING ALTERNATIVES
3. EVALUATING ALTERNATIVES
4. CHOOSING THE BEST ALTERNATIVE
• ONE STEP IN PLANNING ONLY
 Techniques of Decision
Making
• EXPERIENCE
– MORE THE EXPERIENCE HIGHER THE POSITION
– EXPERIENCE IN THE BEST TEACHER
– CAN BE DANGERIOUS FOR FUTURE MAY NOT LINK
WITH THE PAST
– DISTIL FROM EXPERIENCE TO FUNDAMENTAL
REASONS FOR SUCCESS OR FAILURE
• EXPERIMENTATION
• RESEARCH AND ANALYSIS
 Techniques of Decision
Making
• EXPERIMENTATION
– TRY OUT THE ALTERNATIVES AT VARIOUS SCALES
– CONSIDER ALL ALTERNATIVES
– LIMITATION ONLY FOR LIMITED USE eg TEST MARKETING
OF MOTOR CYCLES & AIRPLANES
• RESEARCH AND ANALYSIS
– COMPREHEND TO SOLVE
– SEARCH FOR RELATIONSHIPS IN CRITICAL VARIABLES,
CONSTRAINTS, & PREMISES
– DEVELOP A MODEL – CONCEPTUALIZATION - OR
THANK YOU!