Techniques of decision making 1.DELPHI TECHNIQUE 2.BRAINSTORMING 3.LIBNEAR PROGRAMMING 4.COST ANALYSIS 5.NETWORK ANALYSIS

1. DECISION-MAKING TECHNIQUES
SUBMITTED TO:
MS. MANISHA MAM
SUBMITTED BY:
KARAN SAINI
BCA(2ND SEM )

2. Decision-making is one of the central activities of management
and is a huge part of any process of implementation .
Good decision making is an essential skill to become an effective
leaders and for a successful career .
“A decision is a judgment. It is a choice between alternatives. It is
rarely a choice between right and wrong. It is at best a choice
between “almost right” and “probably wrong”-
Drucker.
What is decision making?

3. Decision making is the one truly distinctive
characteristic of managers.
Decisions made by top managers commit the total
organization toward particular courses of action.
Decisions made by lower levels of management
implement the strategic decisions of top managers
in the operating areas of the organization.
Decisions invariably involve organizational change
and the commitment of scarce resources.
The Significance of decision making

4. Delphi Technique
Brainstorming
Linear
Programmin
g
Network
Analysis
Cost Benefit
Analysis
TECHNIQUES OF DECISION MAKING

5. 1. DELPHI TECHNIQUE
The name Delphi indicates a shrine at which the ancient Greeks used
to pray for information about the future.
In Delphi technique of decision making, members do not have face – to
– face interaction for group decision.
The decision is arrived at through written communication in the form of
filling up questionnaires often through mail.
In the conventional Delphi, a small group designs a questionnaire which
is completed by a larger respondent group.
Its greatest advantage is that it avoids many of the biases and obstacles
associated with interacting groups (that is, groups where the members
meet face-to-face)
Techniques for Decision Making

6. DELPHI follows these steps:
 Select a group of individuals who possess expertise in a given
problem area
 Survey the experts for their opinions via a mailed questionnaire.
 Analyse and distil the experts' responses.
 Mail the summarised results of the survey to the experts and request
that they respond once again to a questionnaire.
 If one expert's opinion sharply differs from the rest, he or she may be
asked to provide a rationale.
 process is repeated several times, the experts usually achieve a
consensus

7. 2.BRAINSTORMING
Brainstorming is a technique to stimulate ideas generation for decision
making originally applied by Osborn in 1938 in an American
company, the technique is now wideld used by many companies,
educational institutions and the other organizations for building
ideas.
Osborn has defined brainstorming simply as using brain to storm the
problem.
Webster dictionary defines brainstorming as “a conference technique by
which a group attempts to find a solution for a specific problem by
amassing all the ideas spontaneously contributed by its members”.
For Brainstorming, a group of 10-to-15 persons is constituted. The
participants should be connected with the problem directly or
closely, through they need not necessarily be from the discipline.

8. 3.LINEAR PROGRAMMING
This technique is used to determine the best use of limited resources for
achieving a given objective. It is based on the assumption that there
exists a linear relationship between variables and the limits of
variations could be ascertained.
It is particularly helpful where input data can be quantified and objectives
are subject to definite measurement. Linear programming is applicable
in such problem areas as production planning, transportation,
warehouse location and utilization of production and warehouse
facilities at an overall minimum cost.

9. 4.NETWORK ANALYSIS
Network technique is used for preparing and controlling the project
activities.
Project Evaluation and Review Technique (PERT) and Critical Path Method
(CPM) are used for planning, monitoring and implementing time bound
projects.
These techniques help managers in deciding the logical sequence in which
various activities will be performed.
By applying this techniques large and complex projects can be executive
within the stipulated time and cost.

10. 5. COST BENEFIT ANALYSIS
A cost benefit analysis (also known as a benefit cost analysis) is a process
by which organizations can analyze decisions, systems or projects, or
determine a value for intangibles.
The model is built by identifying the benefits of an action as well as the
associated costs, and subtracting the costs from benefits.
When completed, a cost benefit analysis will yield concrete results that
can be used to develop reasonable conclusions around the feasibility
and/or advisability of a decision or situation.

11. THANK YOU!