Decision making

1. MANAGERIAL ECONOMICS AND
DECISION MAKING
BY AKASH KUMAR
BBALLB

2. MANAGERIAL ECONOMICS
• Managerial economics deals with the
application and principles of technique and
concept of economics To solve managerial
problems of business and Industrial
enterprises.

3. NATURE OF MANAGERIAL
ECONOMICS
• Applied economic theory
• Pragmatic
• Multidisciplinary
• Applied Science

4. SCOPE OF MANAGERIAL
ECONOMICS
• Demand analysis and forecasting
• Production analysis
• Cost analysis
• Pricing decisions
• Profit management

5. DECISION MAKING
• It can be regarded as mental process resulting
in the selection of course of action among
several alternatives. Every process produces
final choice.
• According to o Donnell “ Decision making is
the actual selection from among alternatives
of a course of action ”.

6. NATURE OF DECISION MAKING
• It is the process of selecting the best from alternatives
• It is a important job for a manager therefore it should
be done in a rational manner
• It is based on managers knowledge, judgement,
creativity and innovation skills.
• It is aimed at achieving organizational goals.

7. DECISION MAKING PROCESS
• Identification of problems
• Identification of alternatives
• Evaluate the alternatives
• Choose best alternative.