decisionmaking techniques of management

1. DECISION MAKING
STEPS & IT’S ESSENTIALS

3. Introduction
• According to Haynes and Massie “a
decision is a course of action which is
consciously chosen for achieving desired
results”.
• It is the starting point of management
process and is the basis of planning.
• Decision making is a continuous process.
• It is essential to face new challenges.
• Right decision at right time facilitates
growth.

5. Steps in decision making

6. identifying problems
Problems faced by a corporate
organization….
*Low profits or declining sales
*High costs
*Low morale of the employees
*High rate of absenteeism

7. Studying the problem
*Includes analyzing the problem.
*finding the causes of the problems by using the
questions why, how , what & when.
* Finding a potential solution for the problem .

8. Clarifying the objectives.
*Clear objectives helps in setting up
immediate as well as long term goals…
analyzing alternative solutions.
* Analyzing alternative solutions refers to
having alternative options. It results in
lesser cost of production.
* Eg –cheaper production alternatives like
raw materials ,machinery ,labor force etc

9. Predicting immediate and long-term consequences of the
decision..
*it is essential to predict the long term effect
of the decision taken as it will affect the
growth of the individual as well as the
organization.
Making the best choice..
* After considering the alternatives ,long-
term consequences the organization as
well as the individual should make
decision.

10. Taking action
*Taking action refers to implementing the decisions and
plan made into action…
*taking action is the most important step as it
materializes decisions ,objectives and goals into
results..
Taking feedback
*A feedback helps to know
If the decision takes is
Really effective or not. If feedback
Is positive then the decision taken
Are continued and if not then the
Decisions are modified

13. Gathering information
*The decision maker must make an Informed
decision.
*He must gather information about essential details
concerning the decisions.

14. Seek counsel &advice
• Seeking council through his friends ,colleagues
• And family member helps the decision maker to
consider the aspects which he may have
overlooked…as well as it helps him by giving a
new outlook and point of views.

15. Making a list of pros and cons
*Making a list of pros and cons helps in
knowing the positive and negative aspects
of a particular decision..
Timely and thoughtful decisions .
*Taking right decision at the right time is
extremely important . Decisions need to
be made thoughtfully as they have certain
element of risk and no guarantee that the
decisions taken will be right.

16. Fact based
*The decision maker should make decisions on the basis of sound
judgments . he should take time to firmly establish the truth by
studying his facts deeply and filtering out the information.
Using logical techniques

17. Objective evaluation & emotional stability.
*the decision maker must make sure that his
decisions are not affected by his emotions
,assumptions ,expectations , opinions and
personal biases.

18. Other essentials
*Decisions should be fair and balanced
*Decisions should be evaluated along
with their patterns.
*Determining the appropriate levels of
decision making.
*Considering all options
* Assessing risks….