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1. DECISION MAKING
• The process of deciding about something important, especially in a
group of people or in an organization.

2. TYPES OF DECISION MAKING
1 Programmed and non-Programmed decision.
• In programmed decision Habits, rules or procedures.
• e.g., we would not worry about Salary of New Employee organization
generally has establish the salary scale for oppositions.
• Non-Programmed decision deals with unusual problems such as policies,
need special treatment.
2 Major and Minor decision.
• Major Decision
• Making the decision to purchase expensive equipment such as CNC. Minor
Decision the purchase of cheap equipment that is a minor decision such as
Typing Paper.

4. 3 Routine and Strategic decision.
• Routine decision like the programmed decision making. Repetitive
and do not need any analysis and evaluation, do not need any
evaluation made by middle management.
• For example, sending a sample in a government investigation
Centre. Strategic decision is related to the policy of the organization,
made by high level management. For example, decisions related to
pricing of products.

5. 4 Organizational and Personal decision.
• A manager makes organizational decisions on behalf of a company's
officer. This type of decision reflects policy of Organization. Personal
decisions are the managers' individual decision.

6. PROCESS OF DECISION MAKING
• 1 Clarify and define the problem
• 2 Establish Realistic Goals
• 3 Generate Solutions
• 4 Evaluate and Compare
• 5 Decide on Feasible and Appropriate Solution
• 6 Implement Solution 7 Evaluate Outcome

7. STAGES IN DECISION MAKING

8. Managerial Roles& Real world Decision Making
• Behavioral Models :Actual behavior of managers appears to be less
systematic, more informal, less reflective, more reactive, and less well organized
than in classical model. There managers roles are described more detailed then
classical models. Mintzberg tells 10 roles which falls in there dimensions .There
are Explained in following figure.
Interpersonal
roles
Informational
roles
Decision roles
• Figurehead
• Leader
• Liaison
• Nerve center
• Disseminator
• spokesperson
• Entrepreneur
• Disturbance
handler
• Resource
allocator
• Negotiator

9. Real World Decision Making
• We saw that information System are not needed by all managerial
roles but some. But in the real world decision making is something
else, for three reasons information systems are not helpful for
decision making
Informational
quality
• Management
filters
Organizational
culture

10. REAL WORLD DECISION MAKING
1. Information Quality: Decision may suffer if the information quality
doesn’t meet the decision quality.
2. Management Filters: Information collected by managers through a
series of filters. Where information are rejected if it does not conform
to manager
3. Organizational Culture: some strong forces within organization such
as their capabilities and competencies resist making decision where
major changes in business processes are involved.