Angeles University Foundation

Character Formation with Leadership,

Decision-making, Management
and Administration

Submitted by: Muñoz, Micaella D.

BS Criminology 1A
Submitted to: Mrs. Marlene M. Salangad

What is decision making?

  Decision making is precisely the study of how real individuals at home or work
actually take decisions, that is, what models hey use to structure and interpret
their world.
 Decision making is at the centre of several intellectual discipline; economics,
politics, systems analysis and psychology to cite the main ones.
 The thought process of selecting a logical choice from the available options.
When trying to make a good decision, a person must weigh the positives and
negatives of each option, and consider all the alternatives. For effective decision
making, a person must be able to forecast the outcome of each option as well, and
based on all these items, determine which option is the best for that particular
situation.

What is decision making in modern management?

 Integral part of modern management. Making the correct decision at the correct
time.
 While making a decision, positives and negatives of each option must be weighed,
and all the alternatives are to be considered.

What is decision making in simple words?

 Making choices from among two or more alternatives.

 The process of identifying and selecting a course of action to solve a specific
problem
 Leads to motivated and dedicated employees

What is decision making process?

 As a det of actions and dynamics factors that begins with the identification of a
stimulus for action and ends with the specific commitment to action.
 Formulating a question to be answered
 Gathering information in order to identify and/or create alternative answers to the
questions
 Predicting the consequences of acting on each of the alternative answers.
 Making a judgment/decision by selecting what appears to be the best alternative
answer of the question.

What are the 7 steps of decision-making process?

Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the
decision you must make. This first step is very important.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is
needed, the best sources of information, and how to get it. This step involves both
internal and external “work.” Some information is internal: you’ll seek it through a
process of self-assessment. Other information is external: you’ll find it online, in books,
from other people, and from other sources.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct
new alternatives. In this step, you will list all possible and desirable alternatives.

Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried
out each of the alternatives to the end. Evaluate whether the need identified in Step 1
would be met or resolved through the use of each alternative. As you go through this
difficult internal process, you’ll begin to favor certain alternatives: those that seem to
have a higher potential for reaching your goal. Finally, place the alternatives in a priority
order, based upon your own value system.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that
seems to be best one for you. You may even choose a combination of alternatives. Your
choice in Step 5 may very likely be the same or similar to the alternative you placed at
the top of your list at the end of Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative
you chose in Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has
resolved the need you identified in Step 1. If the decision has not met the identified need,
you may want to repeat certain steps of the process to make a new decision. For
example, you might want to gather more detailed or somewhat different information or
explore additional alternatives.

What is effective decision-making skills?

 Assess the situation

By defining the problem, you can be selective about the information you
are going to use to make your decision.
 Make a decision
The ‘fast’ method is a gut feeling, unconscious and automatic. The ‘slow’
method is rational, conscious and requires mental effort. These two
processes can be used by a leader to make any number of decisions. Your
decision-making will also be influenced by your leadership style. If it is
democratic then your decisions will have to reflect the opinions of others. If
it is autocratic this will be less of an issue
 Review your decision
Reviewing our decisions allows us to mitigate the effects of the poor
decision as quickly as possible, and to reduce the number of future poor
decisions by learning from our mistakes.
 An ongoing process
 Good leader makes good decisions. However, this is an acquired skill, and
as with all skills it requires deliberate practice with coached feedback to
ensure that your expertise develops. Using decisional aids and being open
to feedback on your performance may help you make the transition from
good to great leadership.

Types of decision making

 Programmed decisions
Programmed decisions are those which are normally repetitive in nature
and are taken as a routine job and responsibilities.
 Non programmed decisions
Is not a routine or repetitive nature. These are unique and new and they
have a long-lasting effect on the organization.
 Major and minor decisions
Among different decisions some decisions are considerably more
important than others and are prioritized.
 Routine and strategic decisions
Routine decision making means such decisions, which are taken in respect
of the day to day activities of the organization and which require less
thinking and advise. These are of a repetitive nature. Basic decision
making means such decisions which are essential for the existence of the
organization and for which complete study, analysis, power, and critical
thinking are essential.
 Organizational and personal decision
Organizational decisions are those which an executive takes in his official
capacity and which can be delegated to others. On the other hand,
personal decisions are those which an executive takes in his individual
capacity but not as a member of organization.
 Individual and group decisions
When the size of the business unit is small and the decisions to be taken
do not require high, specific and technical knowledge, then the decisions
for various problems are normally taken by the managers himself. Such
decisions are known as individual decision-making technique.
Group decision making techniques mean such decisions which are not
taken by a single individual, but by a group. This is known as participating
decisions are known as individual decision making.
 Policy and operating decisions
Policy decisions are those which are taken by top management and which
are of a fundamental character affecting the entire business. Operating
decisions are those which are taken by lower management for the purpose
of executing policy decisions. Operating decisions relate mostly to the
decision marker's own work and behavior while policy decisions influence
work or behavior pattern of subordinates.
 Tactical and Strategic Decision Making
Tactical decisions are those which a manager makes over and over again
adhering to certain established rules, policies and procedures. They are of
repetitive nature and related to general functioning. Strategic decisions on
the other hand are relatively more difficult. They influence the future of the
business and involve the entire organization. Decisions pertaining to
objective of the business, capital expenditure, plant layout, production etc.
  Policy, Administrative and Executive Decisions
Policy decisions are taken by top management or administration of an
organization. Administrative decisions are made by middle management
and are less important than policy decisions. Executive decisions are those
which are made at the point where the work is carried out.

example of decision making

Even if you do not yet have management experience, you probably have made decisions
in a professional setting.

 Facilitating a brainstorming session to generate possible names for a new

product.
 Brainstorming possible themes for a fundraising campaign.
 Comparing the strengths and weaknesses of three potential vendors for
processing payroll.
 Comparing the leadership potential of different team members and choosing a
project manager.

What is decision making in business?

 Decision making is central to an understanding of organizations and of business.

Decision making raises questions about our understanding of how organization
work.
 It I part of the broader field of organization studies and organization theory. It has
therefore fallowed a similar pattern of evolution, drawing on a variety of
paradigms and perspectives and being characterized by a multiplicity of theories,
models and methodologies.
 Every day a number of decisions must be made that determine the direction and
efficiency of the organization we work for. Decisions are made concerning
production, marketing and personnel. Decisions are made affecting costs, sales
and margins.

What is decision making skills?

 Making good decisions is a life skill that can be learned. The skills and abilities to
make right and effective decisions are some of the most difficult to learn. It is a
lifelong learning process defined by our personal traits, errors, and experience.
We have to make decisions and choices everywhere and almost all the time in our
personal and business life. Some of them are easy to make and requires a short
decision-making process while others are the hardest choices in our life.

Give example of decision-making process

Zoe is a junior executive in her twenties working in a prominent sportswear company.

She has decided to purchase a new mobile phone. Let’s look at a potential decision
making process for her.

 Problem Recognition - Zoe feels her mobile phone is outdated to match her needs
and wants to buy a new one.
 Information Research- Zoe talks to some of her friends about buying a new phone
and types of phones.
 Information Evaluation - Zoe goes online and compares several models in terms
of price, features and user ratings.
 Decision - Zoe makes her choice based on features that she was looking for.
 Post Purchase Evaluation - Zoe makes the purchase and enjoys her new mobile
phone