Management Process

Meaning of Decision Making

Selection of a course of action from among alternatives. Core of planning. Process by which managers respond to opportunities and threats by analyzing options. making decisions about goals. courses of action. Systematic research and analysing preceding a decision.

Two types of Decision Making

Programmed Decisions: These decisions have been made many times before by managers. Rules, guidelines to be followed.

Non-Programmed Decisions: Used for unstructured, novel and ill-defined situations of a recurring nature. Based on information and a mangers intuition and judgment.

Steps in Decision Making.

Identify

the problem. -Every problem should be correctly diagnosed. Analyzing the situation -Search the environment for the existence of a problem. Gather information. -Collecting relevant data about the problem. Developing alternatives. -Developing alternative solutions for the problem.

Measuring and comparing the consequences of alternativ solutions. -This involves a comparison of quality and acceptability of various solution. Select the best alternative. -Manager has to select one best alternative from the developed alternatives. Converting alternative into action. - The alternative should be converted into action.

A.

Programmed Decisions(Examples): Decision pertaining to increments in employees salaries.

What is creativity and innovation,

How is it related to decision making?