DECISION MAKING
Business Administration
-Prof. Hitesh Sharma
MEANING
 According to McFarland “A decision is an act of
choice where a manager, forms a conclusion
about what must be done in a given situation. A
decision represents behavior „chosen from a
number of possible alternatives.”
 Henry Sisk and Clifton Williams defined “A
decision is the election of a course of action from
two or more alternatives; the decision making
process is a sequence of steps leading to selection
of proper solution.”
CHARACTERISTICS OF DECISION MAKING
 Managerial function
 Based on alternatives
 An element of planning
 Intellectual process
 Process of rational thinking
 Decisions may be positive or negetive
TYPES OF DECISIONS
 Basic decisions & Routine decisions
 Organizational decisions & Personal decisions
 Programmed & Non-programmed decisions
 Planned decisions & Off-The-Cuff decisions
 Policy decisions & Operative decisions
 Tactical decisions & Strategic decisions
 Individual decisions & Group decisions
PROCESS OF DECISION MAKING

Decision making

  • 1.
  • 2.
    MEANING  According toMcFarland “A decision is an act of choice where a manager, forms a conclusion about what must be done in a given situation. A decision represents behavior „chosen from a number of possible alternatives.”  Henry Sisk and Clifton Williams defined “A decision is the election of a course of action from two or more alternatives; the decision making process is a sequence of steps leading to selection of proper solution.”
  • 3.
    CHARACTERISTICS OF DECISIONMAKING  Managerial function  Based on alternatives  An element of planning  Intellectual process  Process of rational thinking  Decisions may be positive or negetive
  • 4.
    TYPES OF DECISIONS Basic decisions & Routine decisions  Organizational decisions & Personal decisions  Programmed & Non-programmed decisions  Planned decisions & Off-The-Cuff decisions  Policy decisions & Operative decisions  Tactical decisions & Strategic decisions  Individual decisions & Group decisions
  • 5.