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
 Decision Making Process
Synopsis  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
scientific technique to
will help in raising maximum accounting information.
understand industrial
profits. Ratiosrelationship
the define between
commercial operations and
or
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
weaknesses of a firm, as these techniques, the
well as its historical decision-
maker makes use
performance and current of scientific, log icalor
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 Grid Analysis Force Field

Analysis
It is a creatve process This analytical tool
that is free from group especially
is useful in taking
It is a technique of
pressures and traditional complex decisions when weighing all the pros and
decision making process. there are a large number cons of an issue i.e., the
This is a time tested of alternatives, the factors and forces in favour
technique to broaden the choice is or against of a particular
base of decision making decision.
not obvious and there are
process by involving a multiple factors to By comparing the two set of
large no. of persons and contend with. options decision makers
generating as many arrive at the
would havedecision
the which
ideas as possible. decision maker in least negative or adverse
This is a technique to making decisions where impact.
generate uninhibited the desired
ideas without the fear of
rejection or criticism.

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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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