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CHAPTER 2
DECISION MAKING AS A
MANAGEMENT RESPONSIBILITY
Decision-making is a responsibility of the engineer
manager.
It is understandable for managers to make wrong
decisions a times.
The wise manager will correct them as soon as
they are identified.
The bigger issue is the manager who cannot or do
not want to make decisions.
Management must strive to choose a decision
option as correctly as possible.
Since they have that power, they are responsible
for whatever outcome their decisions bring.
WHAT IS DECISIONMAKING?
Decision-making may be defined as the process of
identifying and choosing alternative courses of action
in a manner appropriate to the demands of the
situation.
Decisions are made at various management levels
and at various management functions.
Decision-making, according to William G. Nickels and
others, is the heart of all the management functions
Organizational Aspects
Marketing Aspects
Personnel Aspects
Production Aspects
Financial Aspects
2. External environment
a. Government
b. Labor Unions
c. Suppliers
d. Banks
e. Public
f. Competitors
g. Clients
h. Engineers
Articulate Problem
Evaluate Alternatives
Make a Choice
This is the point that the decision-maker must be
convinced that all the previous steps were correctly
undertaken.
Choice-making refers to the process of selecting
among alternatives representing potential solutions
to a problem.
particular effort should be made to identify all
significant consequences of each choice.
Implement Decision
Implementation refers to carrying out the decision
so that the objectives sought will be achieved.
At this stage, the resources must be made available
so that the decision may be properly implemented.
those who will be involved in implementation must
understand and accept the solution.
Queuing Theory
Network Models
Forecasting
Regression Analysis
Simulation
Linear Programming
Sampling Theory
Statistical Decision-Theory
DECISION-MAKING
CHAPTER 2