DECISION
MAKING
BY
RAJAGURU
DECISION MAKING
 Decision making is defined as a process or
sequence of activities involving stages of
problem of recognition , search for
information, define the alternatives.
 The selection of an actor of one from two or
more alternatives consistent with the ranked
preferences.
CONCEPT
 Decision making is the art of making a choice
among available alternatives.
 It is believed that the “Management without a
decision is a man without a backbone”
 Therefore, decision making is a problem solving
approach by choosing a specific course of action
among various alternatives.
Types
 Programmed and Non-programmed
decisions
 Routine and Strategic decisions
 Tactical and Operational decisions
 Organisational decisions and Personal
decisions
 Major and Minor decisions
 Individual and group decisions
 Delayed and Quick decisions
Programmed Decision
1. That deals with the simple, common,
frequently occuring problems that have well
established & understood solutions.
2. These decisions are made in routine,
repetitive, well structured situations using pre
determined decision rules that may be based
on habit, established polices and procedures.
Non-Programmed Decision
1. Those that deals with unusual or exeptional
problems & which require very careful
analysis study.
2. Pre determined rules are impractical for such
decisions and it is involve lots of uncertainity.
3. Each situation is unique and distinct from
others and require enourmous amount of time,
energy, resource to explore the situation from
all perspective.
Delayed Decision
Such decisions are put on hold until the
decision maker thinks that the right time has
come. Such decisions give one enough time to
collect all information required and to
organise all the factors in the correct way.
Quick decision
Those decision enable one to make maximum of
the oppurtunity available at hand.In order to
take the right decision within a short span of
time, one should also take the long term,
results into considerations.
Major & Minor Decisions
Major decisions are taken by top management.
Decisions pertaining to purchase of new
factory premises is a major decion. Purchase
of office stationary is a minor decision which
can be taken by office superintendent.
Individual and Group Decisions
1. Usually routine type decision are taken by
individuals within the broad policy
framework of the organisation.
2. Group decisions are taken by group of
individuals constituted in the form of a
standing committee.
Facilitative Decision
In facilitative type of decision making, both the
leader an his subordinates work together to
arrive at a decision.
Consultative decision
Consultative decision are made in consultation
with the subordinates.
Delegative Decision (Laissez-faire
leadership)
The leader passes on the responsibility of
making decisions to one or more of his
subordinates.

Decision making ppt

  • 1.
  • 2.
    DECISION MAKING  Decisionmaking is defined as a process or sequence of activities involving stages of problem of recognition , search for information, define the alternatives.  The selection of an actor of one from two or more alternatives consistent with the ranked preferences.
  • 3.
    CONCEPT  Decision makingis the art of making a choice among available alternatives.  It is believed that the “Management without a decision is a man without a backbone”  Therefore, decision making is a problem solving approach by choosing a specific course of action among various alternatives.
  • 4.
    Types  Programmed andNon-programmed decisions  Routine and Strategic decisions  Tactical and Operational decisions  Organisational decisions and Personal decisions  Major and Minor decisions  Individual and group decisions  Delayed and Quick decisions
  • 5.
    Programmed Decision 1. Thatdeals with the simple, common, frequently occuring problems that have well established & understood solutions. 2. These decisions are made in routine, repetitive, well structured situations using pre determined decision rules that may be based on habit, established polices and procedures.
  • 6.
    Non-Programmed Decision 1. Thosethat deals with unusual or exeptional problems & which require very careful analysis study. 2. Pre determined rules are impractical for such decisions and it is involve lots of uncertainity. 3. Each situation is unique and distinct from others and require enourmous amount of time, energy, resource to explore the situation from all perspective.
  • 7.
    Delayed Decision Such decisionsare put on hold until the decision maker thinks that the right time has come. Such decisions give one enough time to collect all information required and to organise all the factors in the correct way.
  • 8.
    Quick decision Those decisionenable one to make maximum of the oppurtunity available at hand.In order to take the right decision within a short span of time, one should also take the long term, results into considerations.
  • 9.
    Major & MinorDecisions Major decisions are taken by top management. Decisions pertaining to purchase of new factory premises is a major decion. Purchase of office stationary is a minor decision which can be taken by office superintendent.
  • 10.
    Individual and GroupDecisions 1. Usually routine type decision are taken by individuals within the broad policy framework of the organisation. 2. Group decisions are taken by group of individuals constituted in the form of a standing committee.
  • 11.
    Facilitative Decision In facilitativetype of decision making, both the leader an his subordinates work together to arrive at a decision.
  • 12.
    Consultative decision Consultative decisionare made in consultation with the subordinates.
  • 13.
    Delegative Decision (Laissez-faire leadership) Theleader passes on the responsibility of making decisions to one or more of his subordinates.