This document discusses decision making in business management. It defines decision making as identifying problems and finding alternatives to solve them. Managers must make various decisions to ensure the organization runs smoothly. The decision making process involves identifying the problem, forming alternatives, analyzing the alternatives, selecting the best alternative, and evaluating the results. Decision making authority depends on the scope and level of the decision. Techniques for decision making include brainstorming, nominal group technique, and Delphi technique.

1. DECISION
MAKING
-BUSINESS MANAGMENT

2. DEFINITION
 Involves
the process of the identifying
problems and finding alternatives to solve
the problems.

3. AUTHORITY IN DECISION
MAKING
 Organization face a lot of problems and
opportunities everyday. Therefore,
managers should have the ability to the
determine which problem or opportunity
should be given priority.
 Managers must make various decisions in
order to ensure that the organization is
running smoothly.

4. cont
 As decision making is an important process in
organization, the employee who has the
authority and responsibility in making decision
for the organization can be determined by
looking at 2 factors :
a) Scope of decision
- refer to the percentage of management
system that will be affected by the decision.
As the percentage become bigger the
scope of the decision also become wider.

5. b) Management level
- As the decision scope becomes
wider, managers who will be responsible
in making decision will come higher
management level

6. TYPES OF DECISION
 The types and quantity of information obtained will
influence the decision made by managers. The
approach that must be used to make decision
depend on the current condition.
a) Programmed decision.
- Based on set policies, rules and procedure
- Every has written and unwritten rules that can
be followed by managers and other employees
to make decision on a routine basis.

7. b) Non programmed decision.
- Use to solve unique or extraordinary
problems.
-Suitable for solving problems that cannot
be solve based on organizational policies.
-Used by top line manager to solve the
problem and managers should have high
conceptual skills to solve it.

8. CONDITIONS OF DECISION
MAKING
 In most conditions, it is impossible for decision
makers to know the impact of the selected
alternatives. This is because organization and
environment keep changing.
 There are 3 different decision making
conditions :
1) Condition under certainty
2) Risky condition
3) Condition under uncertainty

9. 1) Condition Under Certainty
- Managers will be able to predict what will
happen in the future.
- Managers have real information that is
accurate and reliable.
- They also have an adequate and
complete knowledge about the matter.
- This is enables them to list the outcomes of
implementing the available alternatives.

10. 2) Risky Condition
 managers' ability to predict is difficult.
 This is because the manager has just
enough information to estimate
the outcome of
a decision without adequate information.
 Have an effect on what to
do, whether successful or unsuccessful.

11. Conditions Under Uncertainty
 in this case the manager has
no direct information relating to revenue
and the impact of an alternative.
 This usually happens when managers do not
have data or information directly related to
what will happen in the future.
 Then managers need to make very important
and the ability to think critically

12. THE DECISION MAKING
PROCESS
Identifying the problem
Form alternatives
Analyze the alternatives
Select the best alternatives
Evaluation

13. IDENTIFY THE PROBLEM
 Thisstep involves a clear interpretation of the
problem.
 The causes of the problem.
 Managers need to
gather information and vital signs were related
to the problem.
 Once identified then the manager can take
steps to resolve the issue.

14. FORM ALTERNATIVES
 When problems are identified, managers need to
find some possible alternatives to the problem.
 More information is required to find a solution to the
problem.
 Managers need to involve as many employees as
they may have more ideas and views to solve the
problem.
 Managers need to find some alternatives to solve the
problem.
 Technique of "brainstorming" is widely used
in searching and creative ideas.

15. Analyze the alternative
 Managers can be a valuation to each
alternative the best. in this evaluation managers
need to consider 4 things:
 Impact of each alternative. What are the
advantages and disadvantages of the alternative.
 Estimate of the effect of each
alternative possibilities if elected. Effects may be
obtained when implementing of the alternative .
 Compared effects of each alternative, if selected.
 Costs and
benefits of implementing these alternatives.
This selection depends on the wisdom
of the managers involved to find the best alternative.

16. Select the best alternative
 When managers choose the
best alternative, then a form
of alternative plans to implement will
be formed. managers see the potential
impact of the actions developed. If all
three previous steps being carried out
properly then the implementation
stage will be run more effectively.

17. Evaluation
 After the alternative be
implemented then managers need to
reassess whether the results satisfy the
management or
not. If satisfactory, continuing the
current need to be continued and if
not satisfactory, then the problem solving
process to be carried back and take
corrective action.

18. DECISION MAKING
TECHNIQUES
 Brainstorming
- It is a process in which all the
ideas produced by each
member and sorted the best ideas to help in
decision making. This technique should
be carefully designed to encourage each
member to contribute as much as
possible alternatives, and decision logic to
solve problems and make decisions. From the
alternatives, the best will be chosen and
others will be ignored.

19.  Nominal
- A decision-making process where
all members have equal participation. There
are 4 steps:
a. Each member recorded the ideas of the
problem.
b. Each member present ideas orally
and recorded by other members.
c. After all the discussions, the idea were
recorded.
d. The discussion of each member to
assess the ideas and determine the highest
aggregate in silence.

20.  Delphi
This technique is a group decision making technique that is
more complex and take time. This technique does not
allow team members to meet face to face. This technique
is similar to nominal group technique.
- Steps in Delphi technique are :
a. Identify the problems.
b. Members are instructed to provide solutions through a
series of specifically designed questionnaires.
c. Every members completes the questionnaire in private.
d. The results of the first questionnaire are compiled in one
location and duplicated.
e. The compiled resulted are given to all members.
f. Members are instructed to propose a solution ones
again.
g. Repeat steps E and F until decision is achieved