LECTURE ON DESICISON - MAKING

Today we will learn a very interesting topic called

Decision Making, widely practiced in day-to-day life
by the individuals, and also by the organizations.

Let us explore Decision Making in detail.

When we try to explore in detail this topic, first

question which comes to our mind is “what is
decision”?

As per Daft (2009), decision is a choice made from

available two or more alternatives for the purpose of
meeting your aim or goal. Example Organizational:
The selection of W from X, Y & Z for the position of
an Accountant is a decision of Accounts Manager for
his organization. Example Personal: The student X
makes decision to join Engineering stream from the
available alternatives such as Commerce,
Engineering and Medicine.

Let us investigate “What is decision making”?

As per Daft (2009), decision making is the process of

identifying problems and opportunities and then
resolving them. The above process requires efforts
before and after the actual choice is made. Example:
The decision, whether to select W from X, Y & Z for
1
Prepared by Eng. Avinash Bal Krishnan, B.E. (Mechanical), India; P.G.D.E. (Software), USA; M.B.A. (Finance), U.K.
 LECTURE ON DESICISON - MAKING
the position of Accountant requires Accounts
Manager to exercise following efforts before making
choice, such as requirement of the position, creation
of a position, determine availability of potential
candidates, short listing right candidates, conduct
interview. He has to further exercise following efforts
after making a choice, such as evaluating each
candidates performance in the interview, synthesize
candidates results, analyze results of successful
candidates, finally make selection, appointment,
induction, familiarization, training, and finally
assignment to ensure that the decision made to select
candidates is successful.

Let us examine, who are the elements of “decision

making process”?

The elements of this process are:

a. decision maker
b. decision problem or opportunity
c. decisional environment, and
d. the objective or aim

Let us observe, what are the steps in “decision

making” through a flow chart?

2
Prepared by Eng. Avinash Bal Krishnan, B.E. (Mechanical), India; P.G.D.E. (Software), USA; M.B.A. (Finance), U.K.
 LECTURE ON DESICISON - MAKING

FLOW CHART FOR STEPS IN “DECISION MAKING”

IDENTIFYING AND
ORGANIZATIONAL GATHERING
DEFINING PROBLEMS
OBJECTIVES INFORMATION
OR OPPORTUNITIES

DEVELOPING
ALTERNATIVES

FEED BACK
REVIEWING
ALTERNATIVES
VIS-À-VIS KEY
FACTORS

MONITORING IMPLEMENTING SELECTING EVALUATING

DECISION DECISION ALTERNATIVES ALTERNATIVES

Source: w.w.w.the-happy-manager.com/steps-in-decision-making.html

3
Prepared by Eng. Avinash Bal Krishnan, B.E. (Mechanical), India; P.G.D.E. (Software), USA; M.B.A. (Finance), U.K.
 LECTURE ON DESICISON - MAKING

Finally let us find out, what are “Programmed or

Structured Decisions, and Non-programmed or
Unstructured Decisions?

The Programmed or Structured Decisions, and Non-

programmed or Unstructured Decisions are described
in the attached table:

SN PROGRAMMED OR NON-PROGRAMMED
STRUCTURED OR UNSTRUCTURED
DECISION DECISION

1 These decisions are made These decisions are made

under the established under the emergent
situations situations

2 They are called They are called non-

programmed because programmed because they
they are preplanned, and are not preplanned, and are
are monotonous or impromptu or sudden,
routine, customary, and unprepared, and inventive,
methodical, conventional creative or risky
or dull

4
Prepared by Eng. Avinash Bal Krishnan, B.E. (Mechanical), India; P.G.D.E. (Software), USA; M.B.A. (Finance), U.K.
 LECTURE ON DESICISON - MAKING

3 These decisions are made These decisions are made

for specialized processes, for unexpected and
such as Manufacturing, improvised processes, such
Refining, Oil as Acquisitions and
Exploration, Mining, and Mergers, Formation of Join
Steel or Metal Plants Ventures or Consortium,
Natural Calamities, and
Manmade Disasters or
Catastrophes

Source: Daft (2009)

REFERENCES LIST:

Chhabra. T.N., (2009) Principles of Management and

Managerial Economics, 4 th edn, Dhanpat Rai & Company
Private Ltd., Nai Sadak, Delhi

Daft. R.L., (2009) Principles of Management, 4 th edn,

Cengage Learning India Private Ltd., Patparganj, New
Delhi

5
Prepared by Eng. Avinash Bal Krishnan, B.E. (Mechanical), India; P.G.D.E. (Software), USA; M.B.A. (Finance), U.K.