DECISION MAKING .

WHAT IS DECISION MAKING?

 Decision making is the cognitive process
leading to the selection of a course of action
among alternatives. Every decision making
process produces a final choice called a
decision
 It is a construction that imputes commitment to
action. That is, based on observable actions, we
assume that people have made a commitment
to effect the action.
TYPES OF DECISION
 Programmed Decisions.
 Non-Programmed Decision.
 Major and Minor Decisions.
 Routine and Strategic Decisions.
 Individual and Group Decisions.
 Simple and Complex Decisions.
RATIONAL DECISION MAKING
“A decision is rational if appropriate means are chosen
to reach desired ends.”

Steps involved in the process of rational decision making.

• Recognizing the problem.
• Deciding the priorities among problems.
• Diagnosing the problem.
• Developing alternative solutions or courses of action.
• Measuring and comparing the consequences of
alternative solutions.
• Converting the decision into effective action and follow-
up of action.
ENVIRONMENT OF DECISION MAKING

• CERTAINTY
• RISK
• UNCERTAINTY
COMMON DIFFICULTIES IN DECISION
MAKING.
 Incomplete information
 Unsupporting environment
 Non-acceptance by subordinates
 Ineffective communication
 Incorrect timing