2. Decision-making
• Decision-making is a critical aspect of managerial roles within
organizations. It involves various steps, approaches, conditions, and
styles.
3.
4. Decision-Making Process:
• Identifying a Problem:
• Recognizing an issue or opportunity that requires a decision.
• Identifying Decision Criteria:
• Defining the factors or standards to consider when evaluating alternatives.
• Allocating Weights to Criteria:
• Assigning importance or priority to each criterion based on its significance in
the decision.
5. • Developing Alternatives:
• Generating possible solutions or courses of action to address the problem or
opportunity.
• Analyzing Alternatives:
• Assessing the pros and cons of each alternative based on the identified criteria.
• Selecting an Alternative:
• Choosing the best-suited solution based on the analysis and criteria.
• Implementing the Alternative:
• Putting the chosen solution into action.
• Evaluating Decision Effectiveness:
• Assessing the outcome of the implemented solution to determine its success and
make adjustments if necessary.
6. Approaches to Decision-Making:
• Rationality:
• The idealized approach where decisions are logical, consistent, and maximize
outcomes.
• Bounded Rationality:
• Acknowledges limitations in information and cognitive abilities, leading to
decisions that are satisfactory rather than optimal.
• Intuition:
• Decisions based on feelings, instincts, or gut reactions, drawing on past
experiences and tacit knowledge.
• Evidence-Based Management:
• Relies on empirical evidence, data, and analysis to inform decision-making.
7. Types of Decisions & Decision-Making Conditions:
• Programmed vs. Non-Programmed Decisions:
• Programmed: Routine, repetitive decisions guided by established procedures.
• Non-Programmed: Novel, complex decisions requiring unique solutions.
• Decision-Making Conditions:
• Certainty, Risk, and Uncertainty: Based on the level of available information
and predictability of outcomes.
8. Decision-Making Approaches:
• Quantitative Approach:
• Uses mathematical models and data analysis for decision-making.
• Environmental Approach:
• Considers external factors like market conditions, competition, and socio-political influences.
• System Approach:
• Views decisions as interconnected parts of a larger system, considering their impact on
various stakeholders.
• Ethical Approach:
• Considers moral implications and ethical principles in decision-making.
• Intuitive Approach:
• Relying on instincts, feelings, or hunches to make decisions.
• Case Study Approach:
• Analyzing real-life scenarios or cases to derive lessons for decision-making.
9. Decision-Making Styles:
• Linear vs. Nonlinear Thinking Style:
• Linear thinkers prefer structured, logical approaches, while nonlinear thinkers
may embrace creativity and intuition.
• Decision-Making Biases and Errors:
• Cognitive biases or errors that impact decision-making, such as confirmation
bias or anchoring bias.
10. Effective Decision-Making:
• Correctness of Decision:
• Decisions that align with goals and produce desired outcomes.
• Decision Environment:
• Adapting decisions to suit the context and external factors.
• Timing of Decision:
• Timeliness of decision-making to capture opportunities or address challenges.
• Effective Communication of Decision:
• Clear communication to stakeholders about the decision rationale and expected
outcomes.
• Participation in Decision-Making:
• Involving relevant stakeholders to enhance decision quality and acceptance.
11. THANK YOU
Prof. Dr. Kiran S. Shinde
Sanjivani Institute of Management Studies ,
Kopargaon
