Decision

Making
SUMMER CLASS- 2021
- NEIL ARMSTRONG
People often say that they find it hard to make decisions.

Unfortunately we all have to make decisions all the time, ranging from trivial issues like
what to have for lunch, right up to life-changing decisions like where and what to study,
and who to marry.

Some people put off making decisions by endlessly searching for more information or
getting other people to offer their recommendations.

Others resort to decision-making by taking a vote, sticking a pin in a list or tossing a coin.
How do you make a decision?
How do you make the right decision?
What is decision making?
In its simplest sense, decision-making is the act of choosing between two or
more courses of action.

In the wider process of problem solving, decision-making involves choosing

between possible solutions to a problem. Decisions can be made through either
an intuitive or reasoned process, or a combination of the two.
 What’s the difference?
Intuition is using your ‘gut feeling’ about possible
Reasoning is using the facts and figures in
courses of action.
front of you to make decisions.
Although people talk about it as if it was a magical ‘sense’,
intuition is actually a combination of past experience and
your personal values. It is worth taking your intuition into Reasoning has its roots in the here-and-
account, because it reflects your learning about life. It is, now, and in facts. It can, however,
however, not always based on reality, only your perceptions, ignore emotional aspects to the decision,
many of which may have started in childhood and may not and in particular, issues from the past
be very mature as a result. It is therefore worth examining
that may affect the way that the decision
your gut feeling closely, especially if you have a very strong
feeling against a particular course of action, to see if you can is implemented.
work out why, and whether the feeling is justified.
Intuition is a perfectly acceptable means of making a decision, although it is
generally more appropriate when the decision is of a simple nature or needs
to be made quickly.

More complicated decisions tend to require a more formal, structured approach,

usually involving both intuition and reasoning. It is important to be wary of
impulsive reactions to a situation.
Decision-making as a management
responsibility

Decision must be made at a various levels in the workplace. They are

also made at various stages in management process. If certain
resources must be used, someone must make a decision authorizing
certain person to appropriate such resources.
Decision-making process
This is according to David H. Holt

Rational decision-making process involves the following steps:

1. diagnose the problem 6. make a choice

2. analyze the environment 7. implement decision

3. articulate problem or opportunity 8. evaluate and adopt decision results

4. develop viable alternatives

5. evaluate alternatives
Diagnose Problem
If the manager wants to make an intelligent decision, his first move
must be to identify the problem. If the manager fails in this aspects, it
is almost impossible to succeed in the subsequent steps. An expert
once said “ identification of the problem is tantamount to having the
problem half-solved.”
Decision making model
SITUATION 1
Suzy is a very pretty girl. She has a beautiful face and beautiful hair. She is not very happy with her body size. She
weighs about fifteen pounds more than her friends. Suzy says, “My friends are so much prettier than I am. I am so
fat. I wish I could be as skinny as they are.” She also says, “It’s not fair that you guys are so skinny and I am fat.”

When Suzy comes home from school she is starved to death. She is a picky eater. She doesn’t like the things they
serve at lunch, so she spends her lunch money in the candy and Coke machine at school. When she gets home from
school, she makes herself an extra-large milkshake because she is so hungry.

What choices does Suzy have about weighing more than she wants? Are there different choices that she could make
about her diet to enable her to be the way she wants to be?
 Task # 2 Discuss the application of decision making

When Engineer Romeo Estabillo finished his Civil Engineering course at Mapua Institute of Technology, he took the board
examination and passed it in 1981. Wanting to start independently, he went back to his hometown (Santiago City) to organize his own
construction firm. In his first few years of operation, he accepted contracts for the construction of residential houses. As he gained
experience, his clients grew in number, and even the most prominent persons in the province of Isabela availed of his services. At the
start, he hired two assistants to help him in his daily routine as a contractor. One of the two assistants, Mr. Silvino Santiago, was a
third year civil engineering student who had stopped schooling due to financial difficulties. His main task was a draftsman. His duty
was to produce all documents relating to the physical requirements of the various contracts entered into by his boss. Among, these
documents are the building plan, specifications, bill of materials, building permit, etc. his additional duty was to assist Engineer
Estabillo in supervising the foremen and workers at the various construction sites. The second assistant, Mr. Romulo Mamaril, was
assigned to coordinate purchasing bookkeeping, and other related administrative activities.At the third year of operations, Engineer
Estabillo was already directing operations in his newly constructed office inside his residential compound. By this time, two more
female employees were hired to assist in the various tasks performed in the office.By 1994, Engineer Estabillo reviewed his
companys payroll. It indicated that he has in his employ six full time civil engineers, two draftsmen, ten administrative personnel, one
messenger and one security guard. The foremen and laborers working at the various projects were contractual.By June 1996,
Engineer Estabillo felt that business was continuously growing, so he will have to secure the services of four civil engineers on a full-
time basis. As he was directly supervising all operations, he now feels that he may not be able to perform his functions effectively if
he will push through with the plan. He wants to make a decision, but he is apprehensive. He thinks operations are now more complex
that decision-making must be a little scientific. With this thought, he pondered on how he will go about solving the problem.