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Decision Making
1
Content
 What is Decision
Making?..........................Pg No 3
 Features……………………….…........Pg
No 4
 Importance……………...
What Is Decision
Making ?
 Decision Making is the core of
planning functions.
 It is an indispensable component
of the m...
Feature
 Implies Choice
 Continuous Process
 Intellectual Activity
 Systematic Process
 Based on Feedback
 Goal Orie...
Importance
 Beneficial to
Organization.
 Achievement of
Objectives.
 Raises morale of the
employees.
 Optimum Utilizat...
Process of Decision Making
6
Continued…
1) Identifying the Problem: Relevant information
should be gathered.
2) Analsying the Problem: Who must take th...
Techniques of
Decision Making
8
Modern techniques for
Decision making
9
Programmed Decision
Making
 Deal with routine, repetitive but
complex problems.
 Reference to a predetermined set of
pro...
Continued…..
 Linear Programming: When objectives cab be measured
and data quantified.
 Probability Decision Theory: Bas...
Non-Programmed Decision
Making
 Novel and Non-Repetitive Problems.
 More complicated and challenging.
 Decisions to be ...
Continued…
 Creative Techniques :
1. Attribute Listing Technique: No idea is accepted or
rejected until all the ideas hav...
Continued…
 Participative Techniques: Employees are
encouraged to participate in the decision-making
process through new ...
Correlation between Planning
and Decision Making
15
 Decision making is the core of
planning.
 Planning leads to decisio...
THANK YOU
1
6
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POM - Decision Making

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FYBMS - Principles Of Management Module 2
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POM - Decision Making

  1. 1. Decision Making 1
  2. 2. Content  What is Decision Making?..........................Pg No 3  Features……………………….…........Pg No 4  Importance…………………..................P g No 5  Process Of Decision Making……….…..Pg No 6  Techniques Of Decision Making….…….Pg No8  Modern Techniques of Decision Making……..Pg No9  Programmed Decision Making………..Pg2
  3. 3. What Is Decision Making ?  Decision Making is the core of planning functions.  It is an indispensable component of the managerial process.  Decision Making is the process of identifying and selecting a course of action to solve a specific problem. 3
  4. 4. Feature  Implies Choice  Continuous Process  Intellectual Activity  Systematic Process  Based on Feedback  Goal Oriented  Time- consuming  Needs Effective communication  Responsible Job  Situation Based 4
  5. 5. Importance  Beneficial to Organization.  Achievement of Objectives.  Raises morale of the employees.  Optimum Utilization of Resources.  Efficiency & Employee Motivation.  Business Expansion & Growth. 5
  6. 6. Process of Decision Making 6
  7. 7. Continued… 1) Identifying the Problem: Relevant information should be gathered. 2) Analsying the Problem: Who must take the decision- who must be informed. 3) Developing Alternative Solutions: All available alternatives should be considered. Only realistic alternatives should be considered. 4) Selecting The Best Solution: The alternative which gives maximum benefit must be selected. 5) Converting Decision Into Action: Suitable actions has to be executed effectively. 6) Ensuring Feedback: To decide whether the decision taken has to be continued or not. 7
  8. 8. Techniques of Decision Making 8
  9. 9. Modern techniques for Decision making 9
  10. 10. Programmed Decision Making  Deal with routine, repetitive but complex problems.  Reference to a predetermined set of procedures, rules, precedents and techniques.  They are well structured and tend to be consistent over situation and time. 10
  11. 11. Continued…..  Linear Programming: When objectives cab be measured and data quantified.  Probability Decision Theory: Based on assumptions.  Payoff Matrix: Best alternative is used.  Decision Tree: Use of quantitive techniques- decision tree.  Game Theory: Useful for determining factors to be considered in a competitive situation.  Queuing Theory: Determining the optimum no of service facilities.  Simulation: Possible behavior of events is observed and evaluated.  Network Techniques: Used for minimizing time and cost. 11
  12. 12. Non-Programmed Decision Making  Novel and Non-Repetitive Problems.  More complicated and challenging.  Decisions to be taken on an urgent and priority basis.  Managers should be open minded and do not follow the beaten track. 12
  13. 13. Continued…  Creative Techniques : 1. Attribute Listing Technique: No idea is accepted or rejected until all the ideas have been enumerated. 2. Brainstorming Technique: A group of person is given a complicated problem and they are encouraged to suggest whatever solutions they have. 3. Delphi Technique: Members are located at different places but participate through information feedback. 4. Nominal Group Techniques: To restrict inter-personal communication and to maximize the contributions of members. Ideas are presented individually. 5. Gordon Technique: Members are kept in dark about the exact nature of the problem. Members are asked possible solutions and ideas. 1 3
  14. 14. Continued…  Participative Techniques: Employees are encouraged to participate in the decision-making process through new ideas, suggestions.  Heuristic Techniques: Its is a trail and error method. Its is used for quick decision making.  Quality Circles: Group of employees meet periodically to discuss ways of improving the quality of their products or services. 14
  15. 15. Correlation between Planning and Decision Making 15  Decision making is the core of planning.  Planning leads to decision making.  A plan cannot exist unless a decision is made.  Planning – what, where, when, how, which.  Decision – organizational structure, procedure, nature, division of nature, span of control.
  16. 16. THANK YOU 1 6

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