Decision making is an essential leadership skill. If you can learn how
to make timely, well-considered decisions, then you can lead your
team to well-deserved success.
―A Manager by profession is a decision maker,
Uncertainty is his opponent , overcoming it is his mission.’’
Decision making is not easy
It must be done amid
conflicting point of view
Decisions and Decision Making
Decision = Choice made from available alternatives
Decision Making = Process of identifying problems and
opportunities and resolving them
Types of Decision making
Programmed Decisions (routine, almost automatic process)
Situations occurred often enough to enable decision rules to be
developed and applied in the future (There are rules or
guidelines to follow)
Made in response to recurring organizational problems
(managers have made decision may times before)
Example: deciding to reorder office supplies
Non Programmed Decisions
Non-programmed Decisions – (Unusual situations that have not been often
No rules to follow, since the decision is new
These decisions are made based on information, and a managers intuition
Example: should the firm invest in a new technology?
Some decision are considerably more important than others
Degree of Futurity of decisions
A decision which has long range impact Major Decision
eg: like replacement of men by machinery Major Decision
Impact of the decision on other functional areas
When it affects all functional area major decision
Impact of the decision on one functional area
If the Decision Affects Only one Functional Area It is a Minor Decision
Recurrence of Decision
Whether Or Not to renew the Office subscription such as ―Bussiness week‖
Become Minor Decision
Routine Decision are those which are supportive of ,rather than
to the company’s operations
Eg: Provision for AC better lighting,parking facilities,cafeteria etc
Strategic Decision require lengthy deliberation and large funds and
are taken by managers at high levels
On the other hand lowering the price of the product,changing the
product line,installing of an automatic plant etc are all
Individual and Group Decision
Decision may be taken either Individual or by a Group
Individual decision taken majorly when problem is on
Important and strategic decision which may result in
some change in organization are generally taken by
Advantage & Disadvantage Of Group Decision
Increased acceptance by those affected
Group decision take longer
Group can compromise
Group can be dominated
Group can be indecisive
Decision Making Cycle
The Decision Making Process
Define the Problem
Clarify your objectives
Analyze the consequences
Make a choice
Step 1. Define the Problem
Start by writing down your initial assessment of the problem.
Dissect the problem.
What triggered this problem (as I’ve assessed it)?
Why am I even thinking about solving this problem?
What is the connection between the trigger and the
Step 2. Clarify Your Objectives
Write down all the concerns you hope to address through your
Convert your concerns into specific, concrete objectives.
Separate ends from means to establish your fundamental
Clarify what you mean by each objective.
Test your objectives to see if they capture your interests.
Step 3. Identify Alternatives
Generate as many alternatives as you can yourself.
Expand your search, by checking with other
people, including experts.
Look at each of your objectives and ask, ―how?‖
Know when to stop.
Step 4. Analyze the Consequences
Mentally put yourself into the future.
Solving problems by thinking through the process involved
from beginning to end, imagining, at each step, what
actually would happen.
Eliminate any clearly inferior alternatives.
Organize your remaining alternatives into a table (matrix) that
provides a concise, bird's-eye view of the consequences of
pursuing each alternative.
Step 5. Make a Choice
Analyses are useless unless the right choice is made.
Under perfect conditions, simply review the consequences of
each alternative, and choose the alternative that maximizes
In practice, making a decision—even a relatively simple one like
choosing a computer—usually can’t be done so accurately or
Infosys inducts key Decision making group
Infosys has promoted three senior employees to a key decision-making
council, thereby also providing the first glimpses of the people who will be
implementing the turnaround strategy devised by chairman NR Narayana
They heads the "cost optimisation" initiative and "new global delivery
model" that information technology services companies rely on to have
work carried out both at clients' locations and in India.
All decision-making involves elements of risk and reward.
For every decision there are risks. Many organisations are
structured so that major decisions are taken at the highest
levels. This is because decisions at the top can have major
effects for the whole organization.