CHAPTER 2

Decision – Making
As a Management Responsibility
As a Management Responsibility
What is Decision –Making?

 the process of identifying ang

choosing alternative courses of
action in a manner appropriate
to the demands of the
situation.
Decision – Making Process
DIAGNOSE PROBLEM

If a manager wants to make an

intelligent decision, his first move
must be to identify the problem. If
the managers fails in this aspect, it
is almost impossible to succeed in
the subsequent steps.
ANALYZE THE ENVIRONMENT

The environment where the

organization is situated plays a
very significant role in the success
or failure of such an organization.
It is therefore very important that
an analysis of the environment be
undertaken.
ANALYZE THE ENVIRONMENT

Components of the Environment

Internal environment

External environment
Internal Environment
Refers to organizational activities within a
firm that surrounds decision-making.

• Organizational
External
Aspects Environment
• Marketing
Aspects
• Personal Aspects Decision
• Production
Aspects
• Financial External
Environment
Aspects
External Environment
refers to variables that are outside the organization and
not typically within the short-run control of the top
management.
Government
Engineers Labor Unions

Clients Engineering Suppliers

Firm

Competitors Banks
Public
DEVELOP VIABLE ALTERNATIVES

PROCEDURES:
 Prepare a list of alternative solutions

Determine the viability of each

solutions.

Revise the list by striking out those

which are not viable.
EVALUATE ALTERNATIVES

 after determining the viability

of alternatives and a revised
list has been made, an
evaluation of the remaining
alternatives is necessary.
MAKE A CHOICE

 This is the process of selecting

among alternatives
representing potential solutions
to a problem.
IMPLEMENT DECISION

 This refers to carrying out the

decision so that the objectives
sought will be achieved.
EVALUATE AND ADAPT A DECISION RESULTS

 In implementing the decision,

the results expected may or
may not happen. It is therefore
important for the manager to
use control and feedback
mechanism to ensure results
and to provide information for
future decisions.