1. The document discusses the principles and types of decision making. It defines decision making as choosing between two or more alternatives based on logic and judgment. 2. There are different types of decisions including programmed vs non-programmed, major vs minor, routine vs strategic, and individual vs group decisions. Group decisions take longer but provide more information while individual decisions are faster. 3. The document outlines the steps in decision making including recognizing problems, developing alternatives, evaluating consequences, and implementing the decision. Key factors that influence decision making are also discussed.

1. DECISION MAKING Principles and Practices of Session No :1 6 UNIT

4. Types of decision © Copyright McGraw-Hill. All rights reserved. 2 – Figure 2.1 Source: “ 3 Programmed and non-programmed decisions- these are those decision that are made in accordance with some policy, rule or procedure. These are repetitive in nature. Ex.-pricing ordinary customers, payment of absent worker etc. non-programmed decision are those decision which are taken according to the situation arise. There is no any kind of procedure or rules to take such decisions. Ex.failng product line, supply of product stopped due to natural calamity, riots etc. The ability to provide good non programmed decision proves the efficiency of the manger

11. © Copyright McGraw-Hill. All rights reserved. 2 – Types of Group techniques- 1 Simple and complex decision- when the factors to be considered for solving the problems are less the decision is simple and when they are more the decision is a complex one. In this we get four types of decisions- 1.Decision in which the problem is simple and the outcome has a high degree of certainty is called mechanistic decisions. 2. Decision in which the problem is simple and the outcome has a low degree of certainty is called judgmental decision. Decision in the field of markeging,investment etc. 3.Decision in which the problem is complex and the outcome has a high degree of certainty is called analytical decision. ( Production decision )

13. Steps in decision making © Copyright McGraw-Hill. All rights reserved. 2 – 7 2.Deciding priorities among Problems- The manager should not solve every problems himself. He should examine that problem correctly. Some problems can be solved at lower levels, higher levels. Some problems can be differed or delayed. Some problems can be left unsolved. Ex. Napoleon. 3. Diagnosing the problem- the manager should first diagnose the problem. He should examine the problem from all point of view. Ex. Problem of sales decline. Management may think that there is problem in selling techniques. But actually the problem my be in transportation of the goods.

16. © Copyright McGraw-Hill. All rights reserved. 2 – Steps in decision making 1 6.Converting the decision into effective action and follow up action .- The decision should be communicated to the concern dept. or employees. That decision should be accepted by everyone. If possible workers participation should be there in the decision making to avoid opposition