DECISION MAKING

DEFINITION, CHARACTERISTICS, ELEMENTS, PROCESS, TYPES AND

PRINCIPLES
COMPILED & PREPARED BY:
Bro. Carlos B. David
 OBJECTIVES
• At the end of the chapter you will be able to
– Have knowledge about the decision- making, its characteristics,
elements and principles
– Understand the characteristics of good decision
– Learn the types of decision and personal phase of decision-making
– Know about the administrative problems
 INTRODUCTION
• One of the function of management is Decision- making
• Decision may be rational or irrational
• Best decision making is necessary for effective functioning of
management
 DEFINITIONS
• Definition According to:
• Manely H. Jones: it is the solution selected after examining several
alternatives chosen
• George R Terry: Decision making is the selection based on some
criteria from two or more possible alternatives
• D.E. McFarland: A decision is an act of choice wherein an executive
forms a conclusion about what must be done in a give situation
• Shull-et-al: Decision making is a conscious ad human process involving
both individual and social phenomenon.
 . Characteristics of Decision‐Making
• Decision making is a selection process
• • This is the End process
• • The application of intellectual abilities to a great extent
• • Decision gives happiness to the endeavor
• • A dynamic process
 CHARACTERISTICS (cont’d)
• Decision making is situational
• • Decision is taken to achieve the objectives of an organization
• • Decision maker has the freedom to take a decision
• • Decision making involves the evaluation of available alternatives
through critical appraisal methods
 ELEMENTS OF DECISION MAKING
• A problem is fully analyzed and the alternatives are considered before
taking a decision
• • The best decision making requires intelligence, experience and
insight into a problem
• • The philosophy of an individual is involved in decision making.