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COLLEGE OF ENGINEERING AND ARCHITECTURE

ES 5
ENGINEERING MANAGEMENT

CHAPTER 2
DECISION MAKING

Managers of all kinds and types, including the engineer manager, are primarily tasked to
provide leadership in the quest for the attainment of the organization ’s objectives. If he is to
become effective, he must learn the intricacies of decision- making. Many times he will be
confronted, by situations where he will have to choose from among various options. Whatever
his choice, it will have effects, immediate or otherwise, in the operations of this organization.

The engineer manager, s decision –making skills will be very crucial to his success as a
professional. A major blunder in decision – making may be sufficient to cause the destruction
of any organization. Good decision, on the other hand, will provide the right environment for
continuous growth and success of any organized effort.

DECISION- MAKING AS A MANAGEMENT RESPONSIBILITY

Decisions must be made at various levels in the work place. They are also made at the
various stages in the management process. If certain resources must be used, someone must
make a decision authorizing certain persons to appropriate such resources.

Decision- making is a responsibility of the engineer manager. It is understandable for

managers to make wrong decisions at times. The wise manager will correct them as soon as
they are identified. The bigger issue is the manager who cannot or do not want to make
decisions. Delaney concludes that this type of managers are dangerous and “ should be
removed from their position as soon as possible”.

An example may be provided as follows:

The production manager of a certain company has received a written request

from a section head regarding the purchase of an air-conditioning unit. Almost simultaneously,
another request from another section was forwarded to him requiring the purchase of a
forklift. The production manager was informed by his superior that he can only buy one of the
two requested items due to budgetary constraints.
 The production manager must now make a decision. His choice, however, must
be based on sound arguments for he will be held responsible, later on, if he had made the
wrong choice.

WHAT IS DECISION –MAKING?

Decision- making may be defined as “ the process of identifying and choosing

alternative courses of action in a manner appropriate to the demands of the situation ”.

The definition indicates that the engineer manager must adapt a certain
procedure designed to determine the best option available to solve certain problems.

Decisions are made at various management levels (i.e.; top, middle and lower
levels) at various management functions (i.e.; planning, organizing, directing, and controlling).
Decision making, according to nickels and others, “is the heart of all management functions.”

THE DECISION – MAKING PROCESS

Rational decision- making, according to David H. Holt, is a process involving the

steps:

1. Diagnose problem
2. Analyze environment
3. Articulate problem or opportunity
4. Develop viable alternatives
5. Evaluate alternatives
6. Make a choice
7. Implement decision
8. Evaluate and adapt decision results

ASSIGNMENTS
Discuss each the eight (8) decision –making process