What is Decision
Making?..........................Pg No 3
g No 5
Process Of Decision
Making……….…..Pg No 6
Techniques Of Decision
Modern Techniques of Decision
Programmed Decision Making………..Pg2
What Is Decision
Decision Making is the core of
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
Based on Feedback
Raises morale of the
Optimum Utilization of
Efficiency & Employee
Business Expansion &
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.
Deal with routine, repetitive but
Reference to a predetermined set of
procedures, rules, precedents and
They are well structured and tend to
be consistent over situation and time.
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
Game Theory: Useful for determining factors to be
considered in a competitive situation.
Queuing Theory: Determining the optimum no of
Simulation: Possible behavior of events is
observed and evaluated.
Network Techniques: Used for minimizing time
and cost. 11
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.
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
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.
Correlation between Planning
and Decision Making
Decision making is the core of
Planning leads to decision making.
A plan cannot exist unless a decision
Planning – what, where, when, how,
Decision – organizational structure,
procedure, nature, division of nature,
span of control.