DECISION MAKING regulations.

It may arise to any situation where in choosing COMPONENTS OF ENVIRONMENT.

from various options is a great matter.
A). Internal Environment.
DECISON MAKING AS MANAGEMENT
Organizational activities within a firm that
RESPONSIBILITY
sorrounds decision making.
Decision making is a responsibility of the engineer
B). External Environment
manager.
Variables that are outside the organization and
The higher the management level is, the bigger
not typically within short-run control of top
and the more complicated decision- making
management.
becomes.
3. Articulate Problem or Opportunity
DECISION- MAKING:
4. Develope Viable Alternatives
Process of identifying and choosing alternative
courses of action in a manner appropriate to the Solutions offered to problems.
demands of the situation.
Steps or procedures.
DECISION MAKING PROCESS BY: DAVID H. HOLT
1. Prepare a list of alternative solutions.
1. Diagnose a Problem.
2. Determine the viability of each solutions.
Identify the problem.
3. Revise the list by striking out those which are
Problem exist when there is a difference between not viable.
an actual situation and a desired situation.
5. Evaluate Alternatives
2. Analyze the Environment
Proper evaluation makes choosing the right
Identification of constraints such as... solution less dificult.
A). Internal limitations. How to evaluate alternatives.
Ex. Limited funds, Limited training, Low designed A). Determine the nature of problem.
facilities.
B). Know the objectives of the firm.
B.) External Limitations
C). Distinguish the nature of alternatives
Ex. Patents are controlled by other organization, presented.
Limited markets for companys products, Strict
enforcement of local zoning Each alternatives must be analyzed and evaluated
in terms of its value, cost, and risk characteristics.
a).Value of alternatives refers to benefits
expected.

b).Cost of alternatives refers to out of pocket

costs.

c).Risk characteristics refers to the likelihood of

achieving the goals.

6. Make a Choice

Choice making- refers to the process of selecting

among alternatives representing potential
solutions to a problem.

7. Implement Decision

Refers to carrying out the decision so that the

objectives sought will be achieved.

A plan must be devised for effective

implementation.

Resources must be made available so that the

decision may properly implement.

8. Evaluate and Adapt Decision Results.

In implementing the decision, results may or may

not happen. Use control and feedback
mechanism.Figure 2.3.

A). Feedback--process which requires checking at

each stage of the process to assure that these
are keeping with the goals and objectives.

B). Control-- actions made to assure that acts.

performed matched the desired activities or
goals.

DECISION MAKING:

It is a very important function of the engineer

manager. The rise or fall of an organization
depends on the outcomes of every decisions.