SMT.

KASHIBAI NAVALE COLLEGE

OF ENGINEERING,
DEPARTMENT OF MANAGEMENT STUDIES.

SUBJECT : DECISION SCIENCE

TOPIC : DECISION CONCEPT & DECISION MAKING PROCESS

PRESENTED BY : SHRINATH BHAND

ROLL NO : 03
GUIDED BY : PROF. MAHESH LAGAD
  Decision
Synopsis  Decision Making Process
 Techniques of Decision Making
 Conclusion

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WHAT IS M eaning
DECISION? 1) The action or
process of
deciding
something or of
resolving a
question.
2) It is a choice
made from
various available
alternatives.

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DECISION MAKING
PROCESS
It refers to a process by which individuals
select a particular course of action
among several alternatives to produce a
desired result for predetermined
objectives.
The main purpose of it is to direct the
resources of an organization towards a
future goals and reduce the gap
between the actual position and the
desired position through effective
problem solving and exploiting business
opportunities.
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Decision Making Process

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  Different Decision Making Techniques can
improve decision outcomes and your
effectiveness.
Techniques of
Decision Making  Different decision making techniques can
provide unique advantages for specific
decisions.

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Techniques of Decision Making Process

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 TECHNIQUES OF DECISION MAKING

Marginal Break Break

Techniques even even
Analysis Analysis Analysis
This technique is
used in decision-
making to figure out It is that point of sales It is that point of sales
how much extra at which the at which the
output will result if investments made and investments made and
one more variable the profits generated the profits generated
(e.g. raw material, by the firm are at by the firm are at
machine, and equilibrium. equilibrium.
worker) is added. Break-even analysis is Break-even analysis is
a measure by which a measure by which
the level of sales the level of sales
necessary to cover all necessary to cover all
fixed costs can be fixed costs can be
determined. determined.
At the break-even At the break-even
point, total revenue point, total revenue
equals total cost and equals total cost and
the profit is nil. the profit is nil. 8
 Techniques of Decision Making
Operation
Pareto Analysis Ratio Analysis Research
Techniques
It helps in identifying the It is an accounting tool for
This is perhaps the most
areas in the business that interpreting accounting
scientific technique to
will help in raising maximum information. Ratios define
understand industrial or
profits. the relationship between
commercial operations and
two variables. The basic
The basic idea behind predict outcomes.
financial ratios compare
pareto principle is that 80%
costs and revenue for a An operation research (OR)
of the benefits can be
particular period. involves the practical
achieved by putting 20% of
application of quantitative
efforts. The purpose of conducting
methods in the process of
a ratio analysis is to interpret
decision-making.
financial statements to
determine the strengths and W hen using these
weaknesses of a firm, as techniques, the decision-
well as its historical maker makes use of
performance and current scientific, log ical or
financial condition. mathematical means to
achieve realistic solutions to
It also helps in studying the
problems.
relationship between past
and present financial
reports.

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 Techniques of Decision Making
TECHNIQUES Brainstorming
It is a creatve process
that is free from group
pressures and traditional
decision making process.
This is a time tested
technique to broaden the
base of decision making
process by involving a
large no. of persons and
generating as many ideas
as possible.
This is a technique to
generate uninhibited
ideas without the fear of
rejection or criticism.
Grid Analysis
This analytical tool is
especially useful in taking
complex decisions when
there are a large number
of alternatives, the
choice is
not obvious and there are
multiple factors to
contend with.
decision maker in
making decisions where
the desired
Force Field
Analysis
It is a technique of weighing
all the pros and cons of an
issue i.e., the factors and
forces in favour or against of
a particular decision.
By comparing the two set of
options decision makers
arrive at the decision which
would have the least
negative or adverse impact.
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  When it comes to making decisions, one should
always weigh the positive and negative business
consequences and should favour the positive
outcomes.
CONCLUSION
 This avoids the possible losses to the
organization and keeps the company running
with a sustained growth. Sometimes, avoiding
decision making seems easier; especially,
when you get into a lot of confrontation after
making the tough decision.

 But, making the decisions and accepting its

consequences is the only way to stay in control
of your corporate life and time.
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THANKS
!
Any queries?
PLEASE ASK…

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