Skip to main content

notes of decision making

DECISION MAKING

DEFINITION OF DECISION MAKING:-

Decision making is the mental process of selecting a course of action from a set of alternatives. Decision making comprises three phases - 
(a) Finding occasions for making a decision.
(b) Finding possible courses of acting.
(c) Choosing among courses of actiion.

NATURE OR CHARACTERSTICS OF DECISION MAKING:-

  1. It is a goal oriented process:- Decision making is a goal oriented process. It aim at achieving certain specific goals of the organisation.
  2. Selection process:- Decision making is a selection process in which best alternative course of action is choosen from the given alternative course of action.
  3. Intellectual process:- It is an intellectual process because we evaluate the alternative.
  4. Continuous process:- It is a continuous process because a manager is required to take decision continuously fpr different activities.
  5. Decision making is situational:- It is situational because it depends upon the situation to situation, time to time, etc.
TYPES OF DECISIONS:-
1. Programmed and non - programmed decision:- 
  • Programmed decision are normally repeatative nature and these are taken under the policy structure.
  • Non programmed decisions is not repeatative nature their need arise because of specific situation they involve judgement, intutition, creative.
2. Major and Minor decisions:-
  • Major decision  are related to purchase of machine like more than 1 lakh, it is considered as major decision.
  • Minor decisions are related to expenditure less than 1lakh rupees like purchase of stationery.
3. Individual and Group decisions:-
  • Individual decision are taken by a single person it can be for personal objective.
  • Group decision are taken by group who contribute for the special purpose.
4. Organisational and personal decision:- 
  • When an individual takes decisions as an executive in the official capacity , it is know as organisational decision.
  • When the decision is taken by the executive in the personal capacity, it is known as personal decision.
5. Tatical(or Policy) and Operational decisions:-
  • Decision pertaining to various policy matters  of the organisation are policy decisions. These are taken by top level management.
  • Operating decisions are related to day to day functioning or operational of business. middle and lower level managers take these decisions.
6. Routine and strategic decision:-
  • Routine deccision are related to the general functioning of the organisation. They do not require much evaluation and analysis and can be taken quickly.
  • Strategic decisions are important which affect objectives, organisational goal and other important policy matters. These decisions usually involve huge investments or funds.
TECHNIQUES OF DECISION MAKING
1. Statical technique:-  It is used as an important tool in taking decisions. Decisions are the following:
  • Theory of probability,
  • sampling analysis,
  • correlation/regression,
  • time series analysis
  • ratio analysis.
2.Judgement technique:- According to this technique, the decision are taken on the bases of past and present experience.
3.Operational techniques:- Apart from statical technique there are other modern technique which is called operational research technique. Following are the cheap operational technique:-
  • Linear programming,
  • game theory.
  • Network analysis, 
  • Break - even analysis,
  • Waiting line.
  • Cost benefit analysis.
4.Model building technique:- Under this technique, model of an intended product is prepared and then it is estimated whether the product is according to the taste of the customers or not. 
5.Behaviour technique:- These technique factor affecting a particular decision are evaluated. group decisions are an important contribution of this science.
6.Principle of management technique:- It can be observed that the principles of management are not a tehnique of decision making but prepare online an atmosphere for decision making process.
7.Intution technique:- Decision are taken on the basis of inner feeling and we use this technique at the time of emergency.
PROCESS OF DECISION MAKING:


  • Defining the problem:- The right decision is recognizing the problem or ooppurtunity and deciding to adress it. Determine why this decision will make a difference to your customer or fellow employees.
  • Analysing the problem:- In process of solving the problem, you will have to analysis as much as information related to the factors and stakeholders involved in the problem.
  • Development of alternative:- In this process, the baseline criteria for judging the alternative should be setup. When it comes to defining the criteria, organisational goal as well as the corporate culture should be taken into consideration.
  • Evaluation of alternative:- In this process, experience and effectiveness of the judgement principle come into play. You need to compare each and every alternative for their positive and negatives.
  • Selection of best alternative:- In this process, the selection of best alternative is an informed decisions since you have already followed a methodology to derive and select the best alternative.
  • Executive of decision:- In this process, convert your decision into a plan or a sequence of activities. Execute your plan by yourself or with the help of employees.
  • Follow up:- In this process, evaluate the outcomes of your decision. see whether there is anything you should learn and then correct in future decision making.
    

Comments

Post a Comment

Popular posts from this blog

chapter -2 planning

        BBA PRINCIPLE OF MANAGEMENT CHAPTER - 2 PLANNING DEFINITION OF PLANNING:- Planning can be defined as, " thinking or deciding in advance what is to be done, how it is to be done, when it is to done and by whom it should be done. NATURE OR FEATURES OF PLANNING:- Planning contribute to objective:-  planning starts with determination of objectives. We cannot think planning without objective. Planning involve decision making:-  when different alternatives are available then we needed the planning function and we have to select most suitable alternative. If there is one alternative then there is no requirement of planning. Planning is continuous process:-  Planning is never ending process because after making plans planners keep making changes in the plans according to the requirement of the company. Planning is forward looking:-  planning always looking ahead because it is not done for past. All the manager try to make assumptio...
Post a Comment
Read more

chapter -1 introduction of management

BBA SUBJECT Principle of management notes Chapter-1  Introduction of management Definition of management:- Management is the process if getting things done with the aim of acheving organisational goal effectively and efficiently. Management is essential for all the organization. Example , manager has to plan the object or goal of the firm, and organize resources to achieve that objective, appoint or select the employees who can implement these objective effectively and efficiently. Effectively:-  completion the task on time. Efficiently:-  completion the task with minimum cost. Concept of management:- There are four concept of management:- Management as a process:-  It is a process by which management create, operate, and direct purposive organization through systematic, coordinate and cooperated human effort. As a process, management consits of three aspects:-  Management is a social process:- it concerned with developing relatio...
Post a Comment
Read more

chapter -3 organization

CHAPTER 3 ORGANISATION MEANING OF  ORGANIZING Organizing is the frame work of an organisation to achieve the goal of an organisation. organizing is the process of arranging people and other resources to work together for achievement of goal. Organizing refers the process of bringing together physical, financial and human resources and establishing a productive relation among them for achievement of specific goals. NATURE OF ORGANISING Division of labor:- It leads to specialization which increase the efficiency of individual. Orientation towards the goal:- Every organisation have its own objective. Organisation is the function which help the employee to achieve the overall objective of the firm. Common objective:- Each and every sub-ordinate and superior efforts to achieve the organisational goal or objectives. Differenciated function:- Each one has to perform a different task and the task of one individual must be coordinated with others Coordination:- It...
Post a Comment
Read more