management decision making

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the process and impotence of decision making

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management decision making

  1. 1. MANAGEMENT DECISION MAKING Koppula.chandrasekher 1st M.B.A-13491E0037 QIS COLLEGE OF Engineering & Technology Venga mukala palem,ongole-523002, Prakasam (Dt), A.P E-Mail@13491e0037@gmail.com
  2. 2. CONTENTS Interdiction Types of decision making Steps of Decision Making Process Decision making tree Principles of decision making Characteristics of decision making Factors involved in decision making Conclusion
  3. 3. WHAT IS DECISION MAKING  It is the process of recognizing a problem, generating an weighing alternatives, coming to a decision, taking action , and assessing the results
  4. 4. TYPES OF PROBLEMS Crisis Problems  Non Crisis Problems  Opportunity Problems 
  5. 5. TYPES OF DECISIONS & CONDITIONS OF DECISION MAKING  Types of Decisions    Programmed Decisions Nonprogrammer Decisions Conditions of Decision Making     Certainty Risk Uncertainty Ambiguity
  6. 6. IMPORTANCE OF DECISION MAKING Implementation of managerial function Pervasiveness of decision making Evaluation of managerial performance Helpful in planning and policies Selecting the best alternatives successful:;operating of business
  7. 7. It is quite common that some decisions are taken by a manager individually while some decisions are taken collectively by a group of managers. Individual decisions are taken where the problem is of routine nature, whereas important and strategic decisions which have a bearing on many aspects of the organization are generally taken by a group..
  8. 8. Group decision making is preferred these days because it contributes for better coordination among the people concerned with the implementation of the decision. Decisions may also be further classified under major and minor decisions and simple and complex decisions. However, a detailed description of these types is not necessary because they are almost all similar to the already discussed programmed and nonprogrammed decisions in respect of importance and impact.
  9. 9. GROUPS AND DECISION MAKING  Decision making is often an individual activity but there are many times when groups become involved in the process.  Employee Participation in Decision Making Manager have a great deal of latitude when deciding to handle decision making alone or to involve others in the process.  Group Decision – Making Formats   Nominal Groups.   Interacting Group. Delphi Groups. Impact of group Decision Making Group decision making has both benefits and limitation as compared with individual decision making.  Benefits of Groups Decision When attacking a problem, group members are able to contribute more knowledge and information than individuals.
  10. 10. ADVANTAGES AND DISADVANTAGES OF GROUP DECISION MAKING  Advantages  Disadvantages  Groups can accumulate more knowledge and facts.  Groups tend to work more slowly and take more time to reach any decision.  Groups may have a broader perspective and consider more approaches and alternatives.  To much dependence on group decision making may limit a manager’s ability to act quickly and decisively when necessary. Individuals who participate in group decision making are more likely to be satisfied with the decision and to support its implementation.  Groups may be dominated by one individual or a small sub group. The group decision making process serves as an important communication devices.  Group effort frequently result in compromises that may not be optimal for organizational effectiveness or performance.  
  11. 11. PRINCIPLES OF DECISION MAKING Purpose-driven Educational voluntary Self design Flexible Respectable Accountable Time limited and  achievable
  12. 12. CHARACTERISTICS  Decision making is a continuous process  It involves a choice and therefore presupposes the existence of alternatives  Decision making is always purposive in that decisions should aim at achieving some purposes  It is an intellectual process supported by sound-reasoning and judgment  Decision-making is all pervasive in the sense that all levels of managers take decisions, though at the impact and scope of decisions vary.
  13. 13. TOOLS FOR EFFECTIVE GROUP DECISION MAKING  Brain Storming An informal interactive group technique in which members generate many alternatives with out passing judgment on their value.  Devil’s Advocate A technique in which one or more group members deliberately challenge the group’s view to the problem, the alternatives, and their evaluation.  Dialectic process A technique in which individuals or groups present and defend opposing solution to a particular problem to drive an improved solution.
  14. 14. FACTORS INVOLVED IN DECISION MAKING Risk analysis Attitude towards risk Preference theory
  15. 15. If you have any queries and suggestions? please send to my Mail ID Mail –id :13491e0037@gmail.com

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