Decision making involves selecting a course of action from alternative options to solve an organizational problem. It is closely related to problem solving and is a key managerial function. Decision making and planning are interdependent, continuous processes where managers identify issues and make choices to achieve objectives and deal with risks, certainty, and uncertainty. Good decisions lead to effective plans and vice versa.

1. DECISION
MAKING

2. 2
Introduction
Decision Making means selecting a course of action out
alternative courses to solve a problem. Unless there is a problem,
there is no decision making.
Decision making & problem solving are inter-related.
It is a process through which managers identify
organizational problems & solve them.
Decision Making is “selection of a course of action from among
alternatives, it is the core of planning.” – Koontz & Weihrich

3. -The process of planning involves decision making regarding organizational
objectives and ways to achieve the objectives.
-Both decision making and planning require value judgement, creativity &
innovative thinking by managers.
- Plans & Decisions are related to achievements of goals
- Planning & Decision Making are continuous & pervasive process. Managers
perform them at all level.
- Efficiency of planning is largely determined by the efficiency of decisions.
Good decisions leads to good plans & vice-versa.

4. 4
- Managers plan and decide for every situation- risk,
certainty & uncertainty.
- Decision making & planning are based on forecasts &
assumptions about
environmental factors.

5. “
5
-Goal Oriented
-Managerial Function
- Process of Choice
-Basis for problem solving
-Pervasive process
-Dynamic in nature
-Continuous process
- Intellectual process

6. Process of Decision Making
6
Identify the problems
Diagnose the problem
Establish Goal
Collect Information
Generate Alternative
Evaluate Alternative
Select Alternative
Implement the Alternative
Monitor the Implementation

7. Thanking
You!!
7