DECISION MAKING PROCESS

BY
Neeraj Srivastava
 Definition of Decision Making
• A decision represents a judgement a final resolution of a
conflict of needs means or goals and a commitment to
action made in face of uncertainty complexity and even
irrationally .
• Decision making is a conscious human process involving
both individual and social phenomenon based upon
factual and value premises which concludes with a
choice of one behavioural activity from among one or
more alternatives with the intention of moving toward
some desired state of affairs.
 Types of Decisions

• Programmed Decisions or Repetitive

programme .
• Non Programmed decisions or Non routine
programmes .
• Strategic Decisions
• Tactical Decision
 DECISION MAKING PROCESS
• Their are 7 steps these are as follows-
 Step 1
Specific objective
• The need for decision making arises in order
to achieve certain specific objectives .
• Every action of human being is goal directed .
• This is true for decision making also which is
an action .
 Step 2
Problem Identification
• Since a particular decision is made in the
context of certain given objectives .
• Identification of problem is the real beginning
of decision making process.
• A problem can be identified much clearly if
managers go through diagnosis and analysis of
the problem.
 Step 3
Search for Alternatives
• The decisions maker must try to find out the
various alternatives available in order to get
the most satisfactory result of a decision .
• A decision maker can use several sources for
identifying alternatives by his own past
experiences ,practices followed by others and
using creative techniques .
 Step 4
Evaluation of Alternatives
• Evaluation of various alternatives dissects an
alternatives into various tangible and
intangible factors .
• After the various alternatives are identified.
 Step 5
Choice of Alternative

• In choosing an alternative the decision maker

can go through three approaches –
• Experience
• Experimentation
• Research and analysis
 Step 6
Action
• Once the alternative is selected it is put into
action .
• The actual process of decision making ends
with the choice of an alternative through
which the objective can be achieved .
 Step 7
Results
• When the decision put into action it brings
certain results .
• These results must correspond with objectives
the starting point of decision making process .
• Results provide indication whether decision
making and its implementation is proper .
 Decision making conditions
• Certainty

• Risk

• Uncertainty
Techniques for improving group decision
making
1 Brainstorming – It is a technique to stimulate
idea generation for decision making .
• A group of 10 to 15 persons is constituted .
2 Nominal group Technique – Nominal group
technique is a structured group meeting which
restricts verbal communication among
members during the decision making process .
3 Delphi Technique – In delphi techmique of
decision making , members do not have face to
face interaction for group decision . They
communicate through written communication
in the form of filling up questionaires often
through mail .
4 Consensus mapping – The technique begins
after a task group has developed clarified and
evaluated a list of ideas .
THANK
YOU