Decision
Making
SKILLS FOR STUDENTS
Lesson 01 What is Decision Making
Outline 02 Factors Affecting Decision Making
03 Types of Decision
04 Principles and Techniques of Decision
Making
The process of examining your possibilities
what is options, comparing them, and choosing a
course of action.
decision A decision is a choice made between two or
more available alternatives. Decision
making Making is the process of choosing the best
alternative for reaching objectives.
- Samuel Certo, 2003
Decision Making cam be defined as a
process of choosing between alternatives to
achieve a goal. It is the process by which an
individual chooses one alternatives from
several to achieve a desired objective.
- Manmohan Prasad, 2003
Terminologies
Critical - The ability to question philosophically and exercise careful judgement
thinking when evaluating a situation.
DECISION - The final choice made after considering options
PROBLEM - A process whereby a dilemma is identified and corrected.
SOLVING
CREATIVITY - Using imagination to think of new or unique solutions
SATISFICING - choosing an option that is "good enough" instead of the perfect
one.
Factors for making
effective decisions
• Perception • Goals
• Priority • Values
• Acceptability • Demands
• Risk • Style
• Resources • Judgement
Six C's of decision making
• CONSTRUCT a clear picture of precisely what
must be decided.
• COMPILE a list of requirements that must be met.
• COLLECT information on alternatives that meet
the requirements.
Six C's of decision making
• COMPARE alternatives that meet the
requirements.
• CONSIDER the "what might go wrong" factor with
each alternative.
• COMMIT to a decision and follow through with it.
TYPES OF
decision making
1. Basic Decision or Strategic Decisions
• All basic decision is strategic decisions involving large range
commitments and lar investments.
• Slight or small mistakes in these decisions would
seriously injure the entire organizations.
2. Administrative Decisions
• Herbert Simon had classified all decisions in two classes;
Programmed decision:
• It involves organizations which an develop specific process
for handling these decision.
• E.g. standing operating procedures and policies.
Non-Programmed Decisions:
• They relate to general problem solving process. They
involve judgment, intuition and creativity.
3. Organisational or Personal Decisions
• Organizational decisions reflect company policy.
They can be delegated of transferred to others.
• While personal decisions refer to those made by a
manager as an individual and these can't be delegated.
4. Policy of Decisions
• Policy decisions are taken by the top, management.
• e.g. the declaration of bonus in a company is a policy
matter which is to be decided by the top, management
while calculation and distribution of bonus is an
operating decision which i taken as the lower levels.
5. Individual & Group Decisior
• The decisions taken by the an individual in the organization
is known as individual decisions
• Group decisions refer it the decisions which are taken
by a group of organizational members (board directors,
committer of experts)
6. Routine Decisions
• The type of decisions made when problems are relatively
well defined and common & when established rules, policies
and procedures can be used to solve them.
7. Adaptive Decisions
The type of decisions made when problems and alternative
solutions are somewhat unusual and only partially
understood.
02
Characteristics of
decision making process
• From various courses of action, it is a process of choosing a
particular course of action.
• It is a human process which involves the application
intellectual abilities.
• It is a rational process which is proceeded by deliberation
and reasoning. It may also be called as end process.
02
Characteristics of
decision making process
• It is always related to situation in which a manager
may take one decision in a particular set of
circumstances and another in a different set of
circumstances.
• This involves certain specific purpose in which these
may be just be decisions not to decide.
Phases of Intelligent activity
– This phase focuses on identifying the problem
decision that needs attention. It also involves gathering
information to clearly understand the situation.
making design activity
– In this phase, different alternatives are
developed as possible solutions. Each option is
analyzed to see which could work best.
Choice activity
– This is the stage where the best alternative
is selected. The decision is then finalized and
put into action.
Techniques or basis
of decision making
1. Intuition
•Decision making by intuition is characterized by inner
feeling of the person.
•He takes a decision as per the dictates of his conscious
2. Facts
•It is considered to be the best basis of decision
making. Such decisions will be sound and proper
3. experience
• Past experience of a person becomes a good
basis for taking decisions.
• When a similar situation arises the manager can
rely on his past decisions and takes similar
decisions
4. operations research
•It helps managers by providing scientific basis for
solving organized problems involving interactions of
components of the organization
5. Values
•Being confused and unclear about one's values may
affect decision making ability.
•Overcoming a lack of self awareness through values
clarification decreases confusion.
6. Individual preference
•Overcoming this area of vulnerability, involves self
awareness, honesty and risk taking.
Thankyou mga ka
bossing !!
