Fme notes helpful for studying mechanical engineering

24. DECISION MAKING
• Good decision ma king ability is the key to
successful career in management.
• Take decisions very frequently
• Efficiency of concern
• Loss or profit
• Environment is affected by these decisions
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25. DECISION MAKING
• Characteristics
• 1 Choice of the best course among the available alternatives.
• 2. The end processes proceeded deliberation and reasoning.
• 3. Associated with commitment.
• 4. Rational.
• 5 These relate the means to end.
• 6.Evaluation process exists in every course of decision
making.
• These may be negative and just be not to decide.
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26. DECISION MAKING
• Types or classification of decision.
• 1. Major and Minor decisions
• 2. Routine and Strategic decisions.
• 4. Programmed and unprogrammed decisions.
• 5.Departmental and Non-Economic decisions
• 6. Organizational and Personal decisions.
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27. DECISION MAKING
• 1. Major decisions
• Purchase of new machine of Rs. 50 lakhs.
• Minor decisions.
• Purchase of stationary items (like pens,
pencils, Files and papers).
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28. DECISION MAKING
• 2. Routine decisions.
• During the course of production and are
settled on the basis of past practice.
• Deputing a worker in particular shift.
• Strategic decisions.
• Lock out of the factory or stopping the
production of one item in the factory.
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29. DECISION MAKING
• 3. Policy decisions.
• Whether the piece rate system or time rate
system is to be followed in the factory for
calculating the wages.
• Operating decisions
• While the calculation of the wages.
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30. DECISION MAKING
• 4. Programmed decisions.
• Classified on the basis of procedure adopted.
• Programmed decisions are those which are
repetitive and of routine nature for which
definite procedure worked out in the past.
• Grant of earned leave to the workers, Allowing
overtime worker to a certain worker. Allowing
annual increment to workers
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31. DECISION MAKING
• Programmed decisions
• Taken at any time whenever they arise
because this or similar problems have not
arisen earlier.
• Whether to stop or to start manufacturing any
particular product.
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32. DECISION MAKING
• 5.Departmental decisions.
• These are taken by the departmental heads
and related to the individual departments
only.
• Non-Economic decisions
• Non economical factors such as technical
values, normal behavior.
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33. DECISION MAKING
• 6. Organizational decisions.
• The managers take the decisions in their
official capacity.
• Personal decisions.
• Personal decisions relate to the manager as an
individual and not as member of the
organization.
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34. DECISION MAKING
• Decision making process
• Good decision can only be made
• 1. Recognizing and analyzing the problems.
• 2. Finding the relevant facts.
• 3. Determining possible alternatives.
• 4. Evaluating the impact of alternatives.
• 5.Selecting the best solutions.
• 6. Implementation of the decisions.
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35. DECISION MAKING
• 1. Recognizing and analyzing the problems.
• Find out the real problem before arriving at a
decision.
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36. DECISION MAKING
• 2. Finding the relevant facts.
• Collect all the relevant data.
• A decision must always be based on facts
instead of guess and random thinking.
• Decision taken on the basis of facts, reduces
the degree of uncertainty and risk.
• This also helps the managers to know the
probable results of the decision.
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37. DECISION MAKING
• 3. Determining possible alternatives.
• Generally problems has more than one
alternatives and it is very rare that a problem has
only one solution.
• To find out possible solutions manager has to
keep an open mind. Consider all the possible
solutions including those used in past.
• After developing different alternatives next step
to in decision making is to evaluate the
consequences of each proposed alternatives.
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38. DECISION MAKING
• 4. Evaluating the impact of alternatives.
• After listing alternative solutions decision
maker must mentally put it into effect and
visualize the impact of the alternative and
thus forecast what will happen if a certain
alternative is adopted.
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39. DECISION MAKING
• 5.Selecting the best solutions.
• Best solution is then selected by comparing
the merits and demerits, gain or loss.
• Decision maker must also consider degree of
risk, availability of resources, limitations and
time required for implementation.
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40. DECISION MAKING
• 6. Implementation of the decisions.
• After selecting a best solution , it is required
to be converted into effective action.
• The decision must be communicated to the
persons applying it in a simple , clear and
easily understandable language.
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