DECISION MAKING

What is decision making?

It is the study of identifying and choosing alternative based on the value and preferences of the decision maker. ''A decision is a judgment. It is a choice between alternatives. It is rarely choice between right or wrong. Whatever a manager does, he does through decisionmaking''. ''DRUCKER''

According to R. C. Davis, "management is a decision-making process."

It is a part of every managerial function.

Characteristics of Decision Making

1. Decision making implies choice: Decision making is choosing from among two or more alternative courses of action. Managers have to consider these alternatives and select the best one for actual execution

2. Continuous activity/process: Decision-making is a continuous and dynamic process. It pervades all organizational activity. Managers have to take decisions on various policy and administrative matters. It is a never ending activity in business management.

3. Mental/intellectual activity: Decision-making is a mental as well as intellectual activity/process and requires knowledge, skills, experience and maturity on the part of decision-maker. It is essentially a human activity.
4. Based on reliable information/feedback: Good decisions are always based on reliable information. The quality of decision-making at all levels of the Organisation can be

5. Time-consuming activity: Decisionmaking is a time-consuming activity as various aspects need careful consideration before taking final decision. For decision makers, various steps are required to be completed. This makes decisionmaking a time consuming activity

Decision-making process

Barriers to good decision making

Hasty - Making quick decisions without having much thought. Narrow - Decision making is based on very limited information. Scattered - Our thoughts in making decisions are disconnected or disorganized. Fuzzy - Sometimes, the lack of clarity on important aspects of a decision causes us to overlook certain important considerations.

Decision Making Tools Because I'm thinking in a broader way, I feel like I am able to make better decisions. - Takafumi Horie

SWOT ANALYSIS

SWOT can help management in a business discover:

What the business does better than the competition What competitors do better than the business Whether the business is making the most of the opportunities available How a business should respond to changes in its external environment

Six C's of decision making

Construct Compile Collect Compare Consider Commit

Six C's of decision making

Construct a clear picture of precisely what must be decided Compile a list of requirements that must be met Collect information on alternatives that meet the requirements

Six C's of decision making

Compare alternatives that meet be requirements Consider the '''what might go wrong'' factor with each alternative Commit to a decision and follow through with it

Thank you!
The student of special talented group: Aliyeva Ulviyya