DECISION MAKING

What is Decision Making?

Decision making is the process of selecting a course of action
from several alternatives to accomplish a desired result

It is an Intellectual
It is a Goal- It is a Dynamic
or Rational
Oriented Process Process
Process

It is usually made
It is Situational in It is a Continuous within the
nature Process guidelines of an
Established Policy
Characteristics of Decision Making

Reversibilit
Futurity Impact
y

Quality Periodicity
Types of Decision

Rules, Procedures and Policies

Programmed Used to solve problems that are frequently occurring
Decisions Remain Consistent over long periods of time

Non- Every Situation is Unique and must be managed differently

Programmed They call for Intuition, Judgement and Creativity
Decisions Logical approaches are instrumental
 Programmed vs. Non-Programmed
NON-PROGRAMMED
PROGRAMMED DECISIONS
DECISIONS
Non-programmed decisions take more time as
they require greater data collection, research,
Programmed decisions are less time consuming.
analysis and interpretation to take viable and
logical decisions.

Programmed decisions are taken for routine Non-programmed decisions are unique and new
activities and operations. to the organization.
Non-programmed decisions need a Decision-
Programmed decisions facilitate the managers to maker to work as per his perspective and
handle and serve constant requirements of the judgment that is exclusive to a particular
business without any requirement of judgments. situation and cannot be used consistently in
every non-programmed decision.
Decision Making: A Commitment

Arriving
at a
Decision

Process of
Action
 Phases of Defining the Problem

Decision-Making
Analyzing the problem and Gathering Information

Developing Alternative Solutions

Selecting the Best Solution

Converting the Decision into Effective Action

Follow-up of Action Taken

MANAGEMEN
T IS
DECISION-
MAKING
 It ensures that an
Organization’s goals are
Importance met
of
Management It ensures that resources
Process are used efficiently and
that employees are
productive as possible
 PLANNING ORGANIZIN STAFFING
Key Elements G
of Management
Process

LEADING CONTROLLI
NG
Planning

Create a detailed action plan for your goals Deals with preparing plans and setting up
with expected results in mind procedures for their smooth functioning
Group Decision
Making
■ Group decision making is a
type of participatory process in
which multiple individuals acts
collectively, analyze problems
or situations, consider and
evaluate alternative courses of
action, and select from among
the alternatives a solution or
solutions.
Advantages of Group
Decision

 Diverse strengths and expertise

 May lead to greater collective
understanding of the problem and the
eventual course of action
 Greater number of higher quality
alternatives
Disadvantages of Group
Decision

Generally slower to arrive at

decisions

A dominant view or time pressure

may result to Groupthink

Group Polarization