Decision making process in Management.

1. DECISION MAKING PROCESS
Vikash K Giri

2. TYPES OF DECISIONS
Organizational Decision Making – Process of
Identifying and Solving Problems.
Programmed Decisions – Well Defined and
Systematic.
Non-Programmed Decisions – Poorly defined &
Non-Systematic.

3. APPROACH TO DECISION
MAKING
Rational Approach – Ideal Approach for how to make
Managerial Decisions.
Bounded Rationality Approach – How decisions are
made under the effect of time and other constraints.

4. DECISION ESSENTIALS
 Most decisions are not made in a Logical Manner.
 Individuals make decisions, but organizational
decisions are not made by a single individual.
 Conflict exists when problems are not agreed upon.

5. SUMMARY
 The decision making process may employ
several models: rational or normative, descriptive or
bounded rationality.
 Decision making techniques vary according to the
problem and the degree of risk and uncertainty in
the situation.