MANAGEMENT

DECISION
MAKING
AIROTCIV IVY BLAISE P. MANGAWANG, MBA
 Part 1: Barriers to Individual
Decision Making

Part 2: Styles of Decision Making

Topics Part 3: Rational VS Other Types of

Covered
Decision Making

Part 4: Evidenced-based Decision

Making

Part 5: The Use of Decision Tree

Part 6: Managing Group Decision

Making
What is Decision
Making?
It is used interchangeably in
management along with problem-
solving as management are always
saddled with problems that
needed decisions.
CHARACTERISTICS
OF MANAGERIAL
DECISIONS
1& UNCERTAINTY

2 LACK OF
STRUCTURE
 CONFLICT

RISK
3&
4
Types of
Managerial
Decisions
Generally, there are two types of
managerial decisions:

Structured or Programmed Decisions

Non-Structured or Non Program Decisions

Role of Executive Manager in dealing
with changing circumstances:

1 2 3 4

Disturbance Entrepreneur Negotiator Resource

Handler Allocator
Barriers to
Individual
Decision Making
The Level of Decision
Making is Not Clear
There is sometimes doubt about a manager's level of authority, such as
whether he has the authority to make changes to the present system. This
frequently causes uncertainty in the minds of managers, particularly middle-
level managers.
 Lack of Time
Decisions made on the spur of the moment frequently
result in tragic outcomes. Businesses, on the other hand,
are subject to emergencies, and you may find yourself
having to make a decision in a short amount of time as a
decision-maker. For most leaders, this is a challenging
obstacle to overcome; yet, an effective leader must face
these challenges.
Lack of Reliable Data
Making appropriate decisions can be hampered by a lack
of reliable facts. Due to ambiguous and inadequate data,
it is often difficult for them to make an acceptable
conclusion, which may or may not be the best for any
given business.
Risk-Taking Ability
Any decision carries a significant possibility of having a
negative outcome. However, in order to make an
efficient judgment, it is vital to take calculated risks. At
the same time, a careless attitude and a full disregard
for risks will not lead to suitable conclusions.
Too Many Options
If there are too many possibilities for an
effective solution, a management may face a
problem. It can be tough to choose the right
one, especially if a given decision favors one
department over another.
Inadequate Support
A manager, no matter how good he is, cannot function
without proper support from his subordinates. A
manager's job may be compromised if he or she does
not receive appropriate support from upper
management or lower-level personnel.
Lack of Resources
Due to a shortage of resources (time, people, and equipment), a manager may
find it difficult to put his ideas into action. In these situations, he should explore
for other techniques that fit within the constraints of the available resources.
However, if he believes that a shortage of resources is preventing the
organization's growth, he must take necessary action.
 Inability to Change
Every company has its own distinct culture, which
characterizes how it operates. Some policies, on the other
hand, are not favourable to managers seeking a change.
The main barrier is top-level management's and
subordinates' rigid mentalities, which prevents a
manager from making constructive changes even if he
wants to.
Managerial Styles in
Decision Making
The Problem Avoider-
Smoother
He seeks to maintain the organizational status quo and acts from making
changes
He tries to maintain current conditions and would avoid rocking the boat.
He prefers to reconcile conflict and seeks to smooth over any conflict.
He tries to avoid as much as possible problems that may require time and
effort for him to study
The Problem Solver
He solves managerial problems in the normal course of doing things.
He looks for innovations and improvements.
He is receptive to changes and make things happen.
 The Problem Seeker
He seeks out problems and attempts to deal with them
before they emerge as a major difficulty for the
business.
He believes that for the organization to prosper, it must
innovate and change.
He is pro-active rather than reactive.
 Stages in Rational
Decision Making
The Rational Decision Making Proces
What is Evidenced-Based
Decision Making?

It is a way of integrating empirical information and research-supported

principles to justice system choices made at the case, agency, and system
levels that is strategic and deliberate.
The Use of Decision
Making Tree
What is a Decision Tree?

A decision tree is a flowchart that depicts a logical path to a

conclusion.

What are the different parts of the Decision Tree?

Decision nodes: Representing a decision (typically shown with a square)

Chance nodes: Representing probability or uncertainty (typically denoted by a circle)
End nodes: Representing an outcome (typically shown with a triangle)
Example of a Decision Making Tree
Managing
Group
Decisions
Advantages
The sum of a group's
knowledge, abilities,
creativity, and competence
will always be greater than
any single member's.
When a group makes a
decision, all members have
a far better grasp of the
issues and the reasons for
the decision.
Disadvantages
Everyone in the group
must devote time to the
process, and group
discussion and interaction
take longer than individual
decision-making
processes.
There's also a risk that
parties with radically
opposing viewpoints will
find it difficult to agree on
a course of action that they
can all accept.
It is hard to measure
accountability in groups.
 https://www.proschoolonline.com/blog/hurdles-faced-effective-decision-
making

https://courses.lumenlearning.com/wmopen-
principlesofmanagement/chapter/rational-decision-making-vs-other-types-
of-decision-making/

https://nicic.gov/projects/evidence-based-decision-

References making#:~:text=Evidence%2DBased%20Decision%20Making%20(EBDM,%2C%2
0agency%2C%20and%20system%20level.

https://careerfoundry.com/en/blog/data-analytics/what-is-a-decision-
tree/

https://courses.lumenlearning.com/wm-
principlesofmanagement/chapter/barriers-to-individual-decision-making/

Pereda, P. & Pereda, P. (2014). Principles of Management and Organization.

Mindshapers Co., Inc., Intramuros, Manila, Philippines
 LET'S CONNECT

AIROTCIV IVY BLAISE P. MANGAWANG, MBA

INSTRUCTOR 1, OMSC

Thank you!
ivyblaise_cbam@omsc.ph.education @airducation