By: M Rafeeq

I.Introduction:
“A decesicion either good or bad is better than no decesion at all “.
A decesion is a conclusion of process by which one chooses between two or more
available alternative courses of action for the purpose of attaining goals. The process is
called the decession making.
A decision is a course of action selected to meet the requirements ofa solution.(i.e
problem)

Decisions are usually made to attain the objectives of the business .Decision making set
definite objectives ,prepares plans of action ,determines organizational structure,motivate
personnel and introduce innovation .
Decision analasis is the quantitative and rational approach to decision making under
uncertains. Decision analasys provides the decision maker with the tools and information
to deal with uncertainity and is concerned with the asects of descision making:
1) what information to obtain.
2) How to make the best decision
The fundamental approach of decision making analysis is to express uncertainity in
terms of probability theory.Decision analysis convert the problem into thought
experiment and to describe the problem with the aid of a probability model .The model
establishes the mathematical relation ship among the various determinate and random
variables of the problem.The information is obtained to specifies probabilistic inputs to
the model,and the probabilistic outputs are computed.Finally an action is chosen by
selecting the one which provides the moset desirable probabilistic payn off
II.Concept of decision making with reference to authority and responsibility

A persion with a superior knowledge and skills in some areas is called an authority(ie. An
expert)
Authority is defined as the power to make decisions ,which guide the acitions of
another .It is a relation ship between two invidual s .Onesuperior other subordinate
The superior frames and transmits decisions with the expectaion that there will be
accepted by the subordinate.The subordinate executes such decidsions and is condect is
determeined b them
Authority gives right of decsion making ,because a manager cangive order oonly when he
decides what is to be done or not to be done by his subordinates. The superior has right to
enforce the decisions.
Manager donot perform actual jobs but they get the things done by other(lowlevel).
This shows that managers have some right ,by which they can get the things done. This
right is generally known as authority.,which every manager must have to perform his
functions.
“Responsibility is the duty to which a persion is bound by reason of his status or task
responsibility comes into existence because a person with authority, requires assistances
from another and delegates authority to him for the performance of needed specific work.

III. Need for decision making

Decision making is both a managerial function and a organization process. The lifwe of a
manager is filled with making decision after decision
Managers see decisions making has their central job, because the constaintly choose what
is to be done who is to do when where and how to do
Thus a decisions represents an action or series of actions choosen from anumber of
alternatives.
Identifying the problem and analyzing it by gathered information gives managers several
alternatives. A manager can select good or bad decision based on experience are practise
in problem solving.

IV: TYPES OF DECISIONS:

Decisions are of three types : some of the important types are managerial decisions are
1. Programmed and non-programmed decisions
2. individual and group decision
3. organizational decisions
1. Programmed and Non-Programmed decisions
a. Programmed decisions
These decisions are made according to certain rules are processors. Every
organization keeps written are un-written policies to simplify decision making
inordered to reduced or limit alternatives. These are to make routine decisions.
Ex: to pay newly hired employees – organizations will have an established
salary scale for all position.
Programmed decisions allows to devote attention to other impor
tant activities tin the organizations.

b. Non-Programmed decisions:
These decisions deal with unsual or exceptional problems. There are to solve
non routine decisions. If a problem arises which is not covered by policies are
required specialized decision, then it is handled by a non-programmed
decisions.
Ex: how to allocate an organizations resources what to do if a product line
fails. Non-programmed decisions are used when unexpected problem arises.
2. Individual and group decisions:
a. Individual decision:
Individual decisions are taken by a single individual in context of routine
decisions where guide lines are already provided.
b. Group decisions:
Group decisions are taken by a committee constituted for a special purpose.
These decisions are very important organization.
3. ORGANISATIONAL DECISIONS:
A manager makes organizational decisions in the capacity of a company officer.
These decisions are reflect the basic policy of the company. Once these policies are
generated they can be deligated to sub-ordinates.
V: TYPES OF DECISIONS WITH REFERENCE TO LEVELS IN THE
ORGANISATION:
Every organization involves in a complicated pattermn of decisions ranging from setting
of organizational objectives to specific decisions about day to day operations. Some of
these decisions have long term effect while other have short term effect.
1. strategic decisions:
Strategic decision is a major choice of action concerning allocation of resources and
contribution of organizational objectives.
CHARACTERSTICS:
1. The decision is a major one which effect the whole are the major part of the
organiszation
2. These decisions contributes directly to achivement organizational objectives
3. Strategic decisions has three elements
a.) A course of action are plan which specifies the work to be done to achieve
the result knows as action element.
b.) A desired result are objectives to be achieved through the implimentation
of decision known as result element.
c.) A commitment which directs some part of the organization to under take
the course of action makes the personal involved responsible for attaining
the objectives and allocates resources to them known as commitment
element.
4. The Strategic decision is normally a non-programmed decision which made under
the conditioin of partial ignorance. The alternatives cannot be knowing a advance.
This is because strategic decisions is to be taken in the context of environmental
factors, which are quite dynamic and uncertain.
2. Tactical Decision:
Tactical decision are derived out of strategic decision
CHARACTERTICS:
1. Tactical decisions relates to day-to-day operations of the organization and has to
be taken very frequently.
The decisions are mostly repetitive
Ex: Purchasse of raw materials, singing of duties of employees.

2. Tactical decisions are mostly programmed one. The decision is programmed

through the prescription of policies, rules, procedures, etc. such prescriptions
provide what to do in a particular case, where the decision makes simply applies
these prescriptions and decides the things.
3. The outcomes of tactical decisions are of short-term in nature and effects a narrow
part of the organisaation
Ex: purchasing of raw-material is of short-term decision, because raw-materials are
purchased very frequently in the context of well-set policies.

3)OPERATIONAL DECISIONS:
Operational decisions are derived from stratageic and tactical decisions.
Characterstics:
1) Operrational decisions are of short term ,which are day to day
operations.
2) Operational decisions are programmed one and are structured
,where decisions is made through prescribed
policies,rules,procedures etc.
Eg; effective and efficeisn t use of exisiting facilities and resources
to carry out activities with in budget constraints.