Decision making is a process of selection form a set of alternative courses of
action which is thought to fulfil the objectives of the decision problem more
satisfactory than others.
Elements of Decision making:
a.
the decision maker
b.
decision
problem
c.
environment
in which decision is to be made.
d.
objective
of decision maker
e.
alternative
course of action
f.
outcomes
expected from variorums alternatives.
g.
final
choice of the alternative.
Characteristics of Decision Making:
o
process
of choosing course of action among various alternatives
o
human
process involving application of intellectual abilities.
o
end
process preceded by deliberation and reasoning
o
related
to environment
o
involves
time dimension and time lag
o
always
has a purpose
o
involves
actions like deciding, analysing and choosing.
TYPES OF DECISION MAKING:
·
Routine
and strategic
·
policy
and operating
·
programmed
and non programmed
·
individual
and group decision
Significance:
o
essential
part
o
essence
of managing
o
decision
making and planning are interlinked
o
blend of
thinking,deciding and action
Process of Decision making:
1.
Diagnosing
and defining the problem
2.
analysing
the problem
3.
Collection
of data
4.
Developing
alternatives
5.
review of
key factors
6.
selecting
the best alternative
7.
putting
the decision into practice
8.
follow up
Techniques in Decision making:
a.
Marginal
cost analysis
b.
cost
benefit analysis
c.
operations
research
d.
linear
programming
network analysis
