of choosing a course of action from among alternatives to achieve a desired goal.

Process

According to Haynes, it is process of selection from set of alternative courses of action which is thought to fulfill the objective of the decision problem more satisfactorily than others.

Goal

oriented. Implies set of alternatives. Dynamic process. Relates to environment. Continuous or on going process.

Bridge the gap between existing situation and desired situation. Requires in every step of management. Vehicle for carrying managerial work load and responsibility.

Mental processes (reasoning and judgement). Goal oriented. On going and continuous process. Involves choice. Needs information about environment.

Programmed and non-programmed decisions. Routine and strategic decisions. Organizational and personal decisions. Individual and group decisions.

Deal with routine and repetitive problems. Highly certain conditions. Solutions according to established procedures. Require little judgement and deliberation. Usually made by low-level executives.

Example:- late comer employee

Unique and novel problems. Highly uncertain conditions. Each situation is different and needs creative solution. Involves much thought and judgement. Generally made at higher level.

Example:- location of plant, new product.

ADVANTAGES More information and knowledge. More number of alternatives. Understand decision better. Increases commitment and acceptance. Improves cooperation and coordination.

DISADVANTAGES Waste of time due to delay. Creates pressure towards conformity. May be costlier. Tendency to pass increases. Disagreement among members leading to conflict.

Identify the problem (experience and judgement). Diagnose the problem (nature, impact , relation with others). Discover alternatives. Evaluate alternatives (risk, timing, limitation of resources). Select the best alternative. Implementation and follow up.