Management

Engineering
Projects
Prepared By:
Urbano, Novelyne Krizza C.
De Guzman, Hanilyn
Baruela, Francis Dave T.
Llaneza, Nicole
Timbreza, Jonh Mark
Balansi, Charles Edmund
 What is Decision making?

• Decision making is the fundamental

process of management. Most of the
efforts of managers are related to this
process. Unfortunately, decisions do not
always turn out as planned.
 Who make decisions?

• Only executive make decisions. This is

by virtue of his position or authority.
Decision-making is only one of
manager's tasks. It is but a small
fraction of his time. But to make
decisions is his specific work.
Effective Decisions
• Decisions are judgments made between
alternatives, often between almost right and
probably wrong. Effective managers start with
opinions, which are untested hypotheses that
need to be tested against reality. Decisions
are based on conceptual understanding and
should be simple and close to the working
level. Right decisions arise from conflicts
between divergent opinions and competing
alternatives. Managers encourage opinions
but also require them to define factual
findings. The main task of managers is
making policy and making the right decision,
requiring adequate disagreement and
considering the necessity of the decision.
 The Effective Managers
• Effective managers focus on making important, high-level decisions that
significantly impact the organization's performance and results, avoiding
excessive speed and focusing on constants in situations.
• Effective managers make decisions based on principle and merit,
distinguishing between right and wrong compromises. The process involves
implementing the decision rather than making it.
• Effective managers prioritize considering alternatives to make appropriate
decisions, avoiding a closed mind. They constantly monitor decision
outcomes to ensure desired objectives are achieved. If they have not, the
decision maker may have to restart the entire process, or perhaps a review
of the situation may reveal the following:
1. An error in the actual implementation
2. An error in calculation
Decision Process
• Effective decisions are made through a systematic process defining the elements
in a distinct sequence of steps. Most successful decision making follows a
process that consist of the following steps:

1. Identify the problem

2. Specify objectives and the decision criteria
3. Develop alternatives
4. Analyze and compare alternatives
5. Select the best alternative
6. Implement the chosen alternative
7. Monitor results to ensure the desired results are achieved.
 The success or failure in making decision often depends
on how well each of these steps is handled.
1. Identifying the problem is the focal point of the process. Solutions must address the basic problem not
the symptoms.
• The decision maker must identify the criteria by which proposed solutions will be judged.
Common criteria often relate to:
a. Capital
b. Time
c. Profits
d. Maintenance
e. Return of investment
f. Increase of costs
g. Risks
Problem-handling success relies on developing suitable alternatives, which depends on the decision
maker's experience and creativity. Identifying alternatives can yield substantial benefits. One
overlooked option is doing nothing, which is simple, cost-effective, and requires no implementation. It's
often overlooked due to its simplicity.
2. Analyzing and comparing alternatives, often benefits from the use of
mathematical or statistical techniques.
3. Selection of the best alternative will depend on the objectives of the decision
maker and the criteria that are being used to evaluate alternatives.
4. Implementing the chosen alternative involves carrying out the actions
indicated by the chosen alternative. Many decision makers use this approach by
default, leading to backtracking and feedback. If none of the alternatives
achieve desired results, additional alternatives or clear problem identification
are needed.
 Reasons why
manager insist
on disagreement
before decision
making.
1. The decision maker serves as a safeguard against becoming a hostage to the
organization, as everyone desires something from the decision maker, often in good
faith, to obtain their preferred outcome.
2. Disagreement can provide alternatives to a decision, making it like a desperate
gambler's throw. Without an alterative, a decision may prove wrong due to initial
wrongness or changing circumstances. Having alternatives during the decision-
making process provides a fallback, anticipating and understanding the outcome.
Without such alternatives, one is likely to flounder when reality proves a decision
ineffective.
3. Disagreement is crucial for stimulating the imagination, but it's not abundant or as
scarce as commonly believed. Challenge and stimulation of imagination is essential,
and disagreement, when reasoned and documented, is the most effective stimulus.
 Reasons for poor decisions
• Sometimes despite the best efforts of the manager, a decision turns out to be poor
due to unforeseeable circumstances. Although such occurrences arc not very
common, but more often. failure can be traced on some combination of the
following reasons:
1. Errors made in the decision process
2. Bounded rationality
3. Sub-optimism
• Managers often overlook the importance of decision-making steps, often due to
their decision-making style or failure to acknowledge the consequences of poor
decisions. This can be due to a manager's ego, which may have led to a mentality
of infallibility, believing they can make no mistakes. However, this mentality can
lead to mistakes, as some successes may be due to luck rather than special
abilities. Additionally, some managers may be unwilling to admit mistakes,
resulting in a lack of decision-making ability.
Elements of decision process There are five
elements in the process of decision making.
3. Th
2. Define the through
1. See if the specifications that is,
problem was which the which w
specific
generic and could answer to the
attentio
only be solved problem had to the co
through a decision satisfy. that is, of adapt
established by a the boundary conces
rule, or principle. conditions. to make
acc
Elements of decision process There are five
elements in the process of decision making.

1. See if the 3. The thinking

problem was through what is right,
2. Define the that is, the solution
generic and specifications which which will satisfy the
could only be specifications before
4. Th
the answer to the into the
solved through attention is given to
problem had to the compromises, the ac
a decision satisfy. that is, of the adaptations, and
established by boundary conditions. concessions needed
a rule, or to make the decision
acceptable.
principle.
 Elements of decision process There are five
elements in the process of decision making.

3. The thinking through

what is right, that is,
he 2. Define the the solution which will
as specifications satisfy the 5.
nd which the specifications before w
4. The building into
be answer to the attention is given to the the decision of the effe
gh a problem had to compromises, action to carry it out. dec
satisfy. that is, of adaptations, and
by a the boundary concessions needed to
iple. conditions. make the decision
acceptable.
 Elements of decision process There are five
elements in the process of decision making.

3. The thinking
he through what is right,
ons that is, the solution 5. The feedback,
e which will satisfy the 4. The building into the which tests the
specifications before validity and
the decision of the action to
attention is given to carry it out. effectiveness of the
d to the compromises, decision against the
is, of adaptations, and actual course
ary concessions needed events.
s. to make the decision
acceptable.
 Elements of decision process There are five
elements in the process of decision making.

ng
right,
tion 5. The feedback, which
y the tests the validity and
efore 4. The building into effectiveness of the
n to the decision of the decision against the
es, action to carry it out. actual course events.
nd
eded
ision
 The second element in the decision
process is clear specifications as to:
1. What the decision has to accomplish?
2. What are the objectives, the decisions has to reach?
3. What are the minimum goals it has to attain?
4. What are the conditions it has to satisfy?
 Budgeting the time
• Effective managers prioritize their time, not work, and start by determining where their time will go.
Accomplishments are set by time, the scarcest resource, and are referred to as accomplishments.
• Time is a unique, inelastic resource with no price, whose supply remains constant despite high
demand. It is also perishable and cannot be stored, making it extremely short of supply.
• Time is an irreplaceable and necessary resource, yet most people overlook its importance. Man is
ill-equipped to manage his time, as it is the only resource that can be managed without it.
• A manager's main task is working with people, as people are time-wasters. Knowledge workers
spend more time with their superiors and associates than manual workers. Mixing personal and
work relations is time-consuming, as more people are together, consuming more time for
interactions. The larger the organization, the less time a manager has to manage. Decisions on
people arise more often, but fast personal decisions are likely to be wrong. To get work done with
people requires time and judgement, making people decisions more time-consuming.
• Overstaffing can lead to time waster as managers and chiefs focus on human relations issues,
feuds, frictions, disputes, and cooperation, resulting in a large workforce that hinders performance
rather than enhancing it. People become obstacles rather than means to success.
 Meetings
• Mal-organization is a common time waste caused by an excess of
meetings, where one person either meets or works. Meetings occur when
people with different jobs cooperate to complete specific tasks or when the
knowledge and expertise needed for a specific situation are not available
in one head but must be gathered from multiple individuals.
• Executives spending more than a small portion of their time in meetings
indicate mal-organization. Meetings should be purposefully directed, as
undirected meetings are a nuisance and a danger. An organization with
constant meetings results in no progress.
• Meetings should be the exception rather than the rule, as they can be
time-wasting and indicate poor job structures and wrong organizational
components. They should never become the main demand on an
executive's time, as they may not be directed to the people who need it.
 First things firsts
• Effective managers prioritize their tasks
and complete them one at a time,
ensuring they have enough time to make
significant contributions. Despite effective
time management, a significant portion of
the time is not dedicated to the manager's
work.
• Postponing tasks can lead to
abandonment, as timing is crucial for
success. Failing to act wisely can result in
frustration and failure in the future.
 Employee discipline
• Discipline is a management tool used to control employee behavior, aimed at
preventing infractions of company policies or rules. It is not a form of retribution,
but rather a preventive measure to protect both the company and its employees'
interests. It is an employer's action against an employee.
• Control within this context has three major dimensions:
1. As a means of establishing awareness on the part of the employees
regarding the proper behavior, attitude, and conduct in their jobs.
2. As a means of establishing an atmosphere conductive to working
together efficiently.
3. As a means of correcting or reforming employees who commit any
• Discipline is a process that aims to educate employees on fundamental
standards of behavior and performance, ensuring that rules are enforced for
their benefit, not just to punish them, and focuses on correcting or reforming
them.