ENGINEERING MANAGEMENT

MODULE 2:
DECISION MAKING
WHAT IS DECISION
MAKING?
DECISION MAKING IS
VERY IMPORTANT
FUNCTION OF THE
ENGINEER MANAGER.
HIS ORGANIZATION WILL
RISE OR FALL DEPENDING
IN THE OUTCOMES OF HIS
DECISIONS.
DECISION MAKING CAN BE DEFINED
AS:

 THE PROCESS OF CHOOSING

A SPECIFIC PROCEDURE OR
COURSE OF ACTION FROM
AMONG SEVERAL POSSIBLE
ALTERNATIVES.
 CAN BE DETERMINED BY NON-
QUANTITATIVE MEANS.

• INTUITION
• FACTS
• EXPERIENCES
• OPINIONS
 CAN BE DETERMINED BY
QUANTITATIVE MEANS.
• OPERATION RESEARCH
• LINEAR PROGRAMMING
• SIMULATION
• MONTE CARLO
• GAMING AND PROGRAM
EVALUATION REVIEW TECHNIQUE
 IT IS DEFINED AS THE
SELECTION OF A
COURSE OF ACTION
FROM AMONG
ALTERNATIVES; IT IS AT
THE CORE OF PLANNING
 A PLAN CANNOT BE
SAID TO EXIST UNLESS
A DECISION- A
COMMITMENT OF
RESOURCES,
DIRECTION, OR
REPUTATION- HAS BEEN
MADE
  MANAGERS SOMETIME
SEE DECISION MAKING
AS THEIR CENTRAL JOB.

• WHAT IS TO BE DONE
• WHO IS TO DO IT
• WHEN AND WHERE
• OCCASIONALLY, HOW IT WILL BE DONE
 THE DECISION MAKING ENVIRONMENT

1. STRATEGIC-LEVEL

MANAGERS DETERMINE LONG-TERM

STRATEGIES AND SET CORPORATE
OBJECTIVES AND POLICY CONSISTENT
WITH THESE OBJECTIVES.