Decision Making

Doing what's right isn't hard -- Knowing what's right is.

Lyndon B. Johnson.

Please write a One Sentence
Definition of
DECISION MAKING.

A Challenge
Meaning of Decision-Making
Decision making means analyzing different
alternatives and arriving at decision in the face of a
particular situation about what to do and what not to
do.
In this way decision making means reaching a
conclusion or final decision which can be
implemented as a solution of a problem.
Nature of Decision making
1. It is process of selecting the best from the alternatives
2. Decision making is based on rational thinking
3. Decision making is always related to some problem or conflict
4. It involves the evaluation of various available alternatives
5. Decision making is aimed at achieving organizational goals
6. Decision making involve commitments
7. It is basically a human activity
8. Decision making is both managerial function and organizational
process
9. Decision making is the core of planning
10. Decision starts action
11. Uncertainty of results
12. Its a universal mark of manager
13. It may be negative
Nature of Decision making
Process of Decision Making
1. Defining the problem
2. Analyzing the problem
3. Development of alternatives
4. Evaluation of alternatives
5. Selection of the best alternative
6. Execution of the decision
Effective communication
Securing employees acceptance
Correct timing of decision execution
7. Follow up

Importance of Decision making
1. Execution of all managerial functions like.
1. Planning
2. Organizing
3. Staffing
4. Leading
5. Controlling
2. Basis of the evaluation of the performance of managers
3. Continuous change and complexities
4. Successful running of the enterprise
5. Basis of action
6. Double advantage to managers
Principles of Decision Making
1. Principle of adequate information
2. Principle of limiting factor
3. Principle of considering other views
4. Principle of maximization of profit
5. Principle of human reaction
6. Principle of self interest
7. Principle of proper timing
8. Principle of employees participation
9. Principle of proportionality of resources
10. Principle of changing environment