Meaning of decision making

Decision making is a process of selecting the best among the different alternatives. It is
the act of making a choice. There are so many alternatives found in the organization
and departments. Decision making is defined as the selection of choice of one best
alternative. Before making decisions all alternatives should be evaluated from which
advantages and disadvantages are known. It helps to make the best decisions. It is also
one of the important functions of management. Without other management functions
such as planning, Organizing, directing, controlling, staffing cant be conducted because
in this managerial function decision is very important. According to Stephen P. Robbins,
decision making is defines as the selection of a preferred course of action from two or
more alternatives.

Membuat keputusan merupakan pemilihan berdasarkan beberapa kriteria dari dua atau
lebih alternatif yang mungkin. "--George R.Terry

Satu keputusan boleh ditakrifkan -J.L. Massie

Menurut Robbins(1985), membuat keputusan adalah mentakrifkan kerana pemilihan

kursus pilihan tindakan daripada dua atau lebih alternatif.

Importance of decision making

1. Implementation of managerial function: Without decision making different
managerial function such as planning, organizing, directing, controlling, staffing cant be
conducted. In other words, when an employee does, s/he does the work through
decision making function. Therefore, we can say that decision is important element to
implement the managerial function.

2. Pervasiveness of decision making: the decision is made in all managerial

activities and in all functions of the organization. It must be taken by all staff. Without
decision making any kinds of function is not possible. So it is pervasive.

3. Evaluation of managerial performance: Decisions can evaluate managerial

performance. When decision is correct it is understood that the manager is qualified,
able and efficient. When the decision is wrong, it is understood that the manager is
disqualified. So decision making evaluate the managerial performance.

4. Helpful in planning and policies: Any policy or plan is established through

decision making. Without decision making, no plans and policies are performed. In the
process of making plans, appropriate decisions must be made from so many
alternatives. Therefore decision making is an important process which is helpful in
planning.

5. Selecting the best alternatives: Decision making is the process of selecting the
best alternatives. It is necessary in every organization because there are many
alternatives. So decision makers evaluate various advantages and disadvantages of
every alternative and select the best alternative.

6. Successful; operation of business: Every individual, departments and

organization make the decisions. In this competitive world; organization can exist when
the correct and appropriate decisions are made. Therefore correct decisions help in
successful operation of business.

1. Pelaksanaan fungsi pengurusan: Tanpa membuat keputusan fungsi pengurusan yang

berbeza seperti perancangan, menyusun, mengarah, mengawal, kakitangan tidak boleh
dijalankan. Dalam erti kata lain, apabila seseorang pekerja tidak, s / dia lakukan kerja
melalui fungsi membuat keputusan. Oleh itu, kita boleh mengatakan bahawa keputusan
adalah elemen penting untuk melaksanakan fungsi pengurusan.

2. pervasiveness membuat keputusan: Keputusan itu dibuat dalam semua aktiviti

pengurusan dan dalam semua fungsi organisasi. Ia perlu diambil oleh semua
kakitangan. Tanpa membuat keputusan apa-apa jenis fungsi tidak mungkin. Jadi ia
adalah meluas.

3. Penilaian prestasi pengurusan: Keputusan boleh menilai prestasi pengurusan. Apabila

keputusan adalah betul ia difahami bahawa pengurus berkelayakan, cekap dan efisien.
Apabila keputusan yang salah, ia difahami bahawa pengurus hilang kelayakan. Jadi
membuat keputusan menilai prestasi pengurusan.

4. Membantu dalam perancangan dan dasar: Mana-mana polisi atau pelan ditubuhkan
melalui membuat keputusan. Tanpa membuat keputusan, ada rancangan dan dasar-
dasar tersebut dilaksanakan. Dalam proses membuat perancangan, keputusan yang
sesuai hendaklah dibuat daripada begitu banyak alternatif. Oleh itu membuat keputusan
adalah satu proses yang penting yang membantu dalam perancangan.
5. Memilih alternatif yang terbaik: Membuat keputusan adalah proses pemilihan
alternatif terbaik. Ia adalah perlu dalam setiap organisasi kerana terdapat banyak
alternatif. Jadi pembuat keputusan menilai pelbagai kebaikan dan keburukan setiap
alternatif dan memilih alternatif terbaik.

6. yang berjaya; operasi perniagaan: Setiap individu, jabatan dan organisasi membuat
keputusan. Dalam dunia yang kompetitif ini; organisasi boleh wujud apabila keputusan
yang betul dan sesuai dibuat. Oleh itu keputusan yang betul membantu dalam kejayaan
operasi perniagaan.

Steps in decision making

1. Identification of problems: the first step of decision making is identification of problems.

First of all, managers must identify the problem. The problem has to be found and defined.
Symptoms are identified and problems should be judged, symptoms are not problems. They
are warning signs of problems. So, managers should search for symptoms for identification of
problems. Such symptoms can be falling of sales, profit etc. It is said that problem identified is
half solved is identification of problem should be effective.
2. Analysis of problem: after identification of problems, the problem should be analyzed by
the decision maker. It is the assembly of fact and clarifying it. Relevant information must be
collected and analyzed according to the complexity and nature of problems.
3. Developing the alternative solution: after identification and analysis of problems different
probable solutions have to be developed which is known as developing the alternative
solutions. there may be many alternative past experience, expert opinion, discussions etc
which may be helpful to develop the alternative
4. Evaluation of best alternative: after developing the alternative solution evaluation of best
alternative is done. It is determined that which alternative has how much advantage and
disadvantages. in other words, alternatives are evaluated in so many factors like cost factors,
risk , benefits, facilities etc. therefore it is very important
5. Selection of best alternative: after evaluating alternative, the best alternative is to be
selected from various alternative. After developing alternative, the managers should taste each
of them by imagining things that he has already put in effect. He should try to foresee the
desirable consequences of adopting each alternative. It is done for best selection. therefore it is
very important
6. Implementation of best alternative: after selection of finest alternative, it must be used in
the organization effectively. Effectiveness of decisions in achieving the desired goals depends
upon its implementation. It they are not implemented effectively then best results cant be
obtained. Therefore proper implementation of best alternative is necessary.
7. Review of implementation: it is the last step of decision making process. When the
implementation of best alternative is reviewed, the process of decision making is finished. The
result of implementation should be monitored and evaluated through which effectiveness can
be measured.

Read more: http://notes.tyrocity.com/chapter-5-steps-in-decision-making-process-business-

studies-xii/#ixzz4C4q8ARvn
Follow us: tyrocity on Facebook

Decision making is a central responsibility of managers and leaders. It requires defining the issue or
the problem and identifying the factors related to it. Doing so helps create a clear understanding of what
needs to be decided and can influence the choice between alternatives.
An important aspect of any decision is its purpose, or objective. This is different from identifying a
specific decision outcome; rather, it has to do with the motivation to make the decision in the first place.
For instance, customer complaints can imply the need to change aspects of how service is delivered, so
decisions must be made to address them. Factors that are not related to service delivery would not be
in consideration in that decision.
There are a number of ways to define a problem, such as creating a team to tackle it and gathering
relevant data by interviewing employees and customers.
Developing a Group to Define the Problem

It is a good idea to be able to approach decision definition from different perspectives. Doing so can
capture dimensions of the issue that might otherwise have been overlooked. Involving two or more people
can bring different information, knowledge, and experience to a decision. This can be accomplished
through forming a group to consider and define the problem or issue, and then to frame the decision
based on their collective ideas. Having a shared definition and understanding of a decision helps the
decision-making process by creating focus for discussions and making them more efficient.
Gathering Data to Define the Decision

Most decisions require a good understanding of the current state in order to understand all implications of
the potential choices. For this reason it can be valuable to consider the views of all parties that will be
affected by the decision. These may include customers, employees, or suppliers. Data should be
gathered on how the current problem is affecting people now. Some examples of important data to gather
include efficiency levels, satisfaction levels, and output metrics. Interviews, focus groups, or
other qualitative methods of data collection can be used to identify existing conditions that may be
connected to the decision in question. As much information as possible should be gathered to build
confidence that a decision has been accurately and appropriately formulated before
additional analysis and assessment of alternatives begin.

Source: Boundless. Identify and Define the Problem. Boundless Management. Boundless, 26 May.
2016. Retrieved 20 Jun. 2016 from https://www.boundless.com/management/textbooks/boundless-
 management-textbook/decision-making-10/decision-making-process-78/identify-and-define-the-problem-
375-3966/

Adair, J. (2010). Decision making and problem solving strategies (2nd ed.). Kogan
Page. London,UK. (Database Books24x7)

Semua individu akan terlebih dahulu membuat keputusan untuk melaksanakan sesuatu perkara
yang telah dirancang. Dalam hal ini, seseorang individu itu perlu membuat keputusan mengikut
proses yang disediakan.

Jenis Membuat keputusan

Membuat keputusan adalah suatu kemahiran yang dapat dipelajari oleh setiap orang atau
individu. Terdapat dua jenis membuat keputusan yang asas iaitu:

Keputusan yang dapat dilakukan dengan menggunakan proses yang ditetapkan.

Keputusan yang berlaku secara tidak dirancangkan.

Keputusan yang bijak adalah keputusan yang dibuat melalui proses khusus. Ia diasaskan pada
nilai dan persepsi pembuat keputusan serta melibatkan alternatif yang dipertimbangkan secara
teliti dan berasaskan pilihan di sepanjang penilaian semula secara berkala berkenaan dengan
keputusan yang diambil serta mengambil kira kesan yang bakal berlaku. Selain itu, kebanyakan
keputusan melibatkan beberapa konflik ataupun rasa tidak puas hati. Bahagian yang dianggap
sukar dalam membuat keputusan adalah mendapatkan penyelesaian yang hasilnya positif serta
dapat diimbangi dengan risiko yang mungkin timbul. Mengetepikan keputusan selalunya
kelihatan mudah. Namun, membuat keputusan sendiri dan menerima kesannya hanya satu cara
bagi membolehkan kita mengawal masa dan mencipta kejayaan dalam kehidupan.

Williams, C . (2000). Management. Ohio: South-Western Publishing