DECISION MAKING Individual decision making Decision –making is the “selection of a course of action from among alternatives; it is the core of planning.” - Koontz and Weihrich Decision-making means selecting a course of action out of alternative courses to solve a problem. Decisions may be major or minor, strategic or operational, long-term or short-term. They are made for each functional area at each level. The importance of decisions, however, varies at each level. Decision making is a modest attempt to match environmental opportunities with organisation’s strengths. It is based on forecasts and assumptions about environmental factors. FEATURES OF DECISION MAKING Identify the Problem Diagnose the Problem Establish Objectives Collect Information Generate Alternatives Evaluate Alternatives Select the Alternatives Implement the Alternative Monitor the Implementation TYPES OF DECISIONS TECHNIQUES OF DECISION MAKING Linear programming Simulation Probability theory Decision tree Queuing theory Gaming theory Network theory Modern techniques for making programmed decisions: Creative Techniques i. Brainstorming ii. Nominal Group Technique