Presentation on Decision Making

Click to edit Master subtitle style Presented By:-

Krishna Sarathi Deb Asad

4/19/12

Hussain

Decision and Decision Decision and Decision Making Making

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Decision= choice made available alternatives.

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Decision Making= process of identifying problems and opportunities and resolving them.

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Characteristics of Decision Making

Goal-oriented activity. Existence of alternative course of action. Positive or Negative. Both Science and Art. Situational. May be Voluntary or Induced. Complex Mental Exercise. Ongoing Activity.

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Importance of Decision Making

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It makes it possible to adopt the best course of action in carrying out a given task. It ensures optimum use of the enterprise resources. It helps to find a solution to any problem in a work place. It promotes efficiency. The conflicts in an organization are resolved through decisions.

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Problems in Decision Making

Lack of knowledge of the alternative course of action. Indecisiveness. Failure to make correct diagnosis. Quick Decisions. Unavailability of necessary information. Resistance.

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Guidelines for Effective Decision Making

Anticipate organizational problems and develop solutions. Approach Professionals. Avoid to Postpone decisions. Have access to information. Involving the Subordinates. Take Follow-up action.
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Process of Decision Making

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Types of Decisions

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Decision Situations

Certainty: All the information the decision maker needs is fully available. Risk: Outcome of the decision is not known, information is inadequate.. Uncertainty: Information about alternatives and future events is incomplete.
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Decision Styles
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Directive Style: People who prefer simple, clear-cut solutions to problems, make decision quickly. Analytical Style: Complex solutions based on as much data that can be gathered, carefully consider alternatives. Conceptual Style: Consider a broad amount of information, like to talk to others about the problems and possible solutions. Behavioral Style: Have a deep concern for others as individuals, like to talk to people one-on-one.

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Factors of Decision Making

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Tangible Factors: E.g., Profits, Production, Sales, Purchases, Inventory level.

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Intangible Factors: E.g., Consumer satisfaction, Employee attitude, Manager-Subordinate Relationship.

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Decision Making Models

Classical model: Decision Maker is rational and uses logic. Administrative Model: Rational procedures are not used, managers settle for a satisfying rather than a maximizing solution. Political model: Closely resembles the real environment where most managers and decision makers operate.

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Methods of Decision Making

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Contd.

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