In fact, the decision is the point at which plans, policies and objectives are translated into concrete actions. Uncertainty or risk is his opponent; overcoming it is his mission. Meaning of Decision Making. Decision-making is a must for all managerial functions. Factors Influencing 5. The fear in using consensus decision making among organizations such as ours is that “large groups operating under unanimity rule are less sustainable” (Georges & Romme, pp. That is why; decision-making is regarded by many writers as a part of the planning process. It also involves certain commitment. Sometimes the decision-making process es extremely short, and mental reflection is essentially instantaneous. Decision-making is the end product because it is preceded by discussions and deliberations. The decision maker, The decision problem, The environment in which the decision is to be made, The objectives of the decision maker, The alternative courses of action, The outcomes expected from various alternatives, and; The final choice of the alternative. Meaning of Decision Making 2. Process 4. They are situations that are routine and occur frequently. Decision-making is considered both an art and a science. Decision-making is the responsibility of managers at different levels of management. Prohibited Content 3. Characteristics of Decision Making 3. Without decision making, different managerial functions such as planning, organizing, directing, controlling, and staffing cannot be conducted. Decision making is important to achieve the organizational goals/objectives within given time and budget. Content Guidelines 2. 4. Planning leads to sound-decision- making and implies decision-making, i.e. Every management decision also affects employee morale and performance, ultimately influencing the overall business performance. Creating such programed routines lead to the formulation of rules, procedures and policies, which becomes a standard in the organization. Meaning of Decision Making: Decision Making is an important function in management, since decision-making is related to problem, an effective decision-making helps to achieve the desired goals or objectives by solving such problems. Content Filtrations 6. These stages explain how decision making should take place logically. It is the effectiveness and quality of those decisions that determine how successful a manager is. Factors Influencing Decision Making. Decision Making is a process of selection from a set of alternative courses of action, which is thought to fulfill the objectives of the decision problem more satisfactorily than others. Factors Influencing 5. Image Guidelines 5. It is thus evident that decision-making is at the core of planning. As planning is necessary for other managerial functions of organising, directing and controlling, decision-making too has a pervasive influence on all managerial functions. Thus, according to him the former set of acts are decisions, while there are many subsidiary acts in decisions which are themselves automatic and of which the processes are usually unknown to the manager himself. We can therefore; say that decision-making process is at the centre of the management universe. As a matter of fact, deciding and planning have related meaning. A business executive is by profession a decision-­maker. Decision-making is aimed to achieve organizational goals. In other words, decision-making in planning is as important as in organisation, co-ordination and control, because in each of these functions the manager has to choose from among a number of alternative courses of action. We know that the general systems theory of David Easton and the structural- functional approach of Gabriel Almond and other related theories are more or less static in nature which means that all these theories deal with those elements that are static. It represents a course of action about what must or must not be done. Programmed decisions are effective for day-to-day issues such as requests for leave or permissions by employees. Nature of Decision-Making: A decision is always related to some problem, difficulty or conflict. Deciding is no doubt a form of planning. Rationality. Decisions are made for future course of action based on the basis of past experiences and present conditions. It means to come to a conclusion of a problem. Disclaimer 9. 6. Planning is concerned with a future course of action and involves choosing among alternatives. Such orders and instructions involve decision-making within the framework of planning. Characteristics of Decision Making 3. Decision-making is a selection process in which best alternative course of action is chosen from the given alternative courses of action. Decision Making in Management: Definition and Features – Explained! 3.2 Types of decision making It is structured. Decision-making is a must for all managerial functions. Plagiarism Prevention 4. Decision making is related to planning, organizing, directing and controlling functions of a manager. Whether the outcome is a consequence of luck or wisdom, the moment of decision-making is the most creative event in his life. Non-programmed decisions are unique and one-shot decisions. Decision-Making Styles. Decision making is an integral part of every aspect of life. His decision-making theory can be ex­plained in the form of following points: 1. For instance, the function of choosing of objectives, policies, procedures, programmes, rules, strategies and tactics etc., need the entire process of decision-making. It is one of the key factors that pave the way for its success or failure. 5. The process of decision making is to recognize and define the nature of a decision situation and select the best possible alternative from among the available alternatives and put it into practice Usually, a decision is expressed as a policy or as a rule or as an order or as a directive of the business enterprise. Copyright 10. decision making under risk to decision making with certainty –Build the large plant if you know for sure that a favorable market will prevail –Do nothing if you know for sure that an unfavorable market will prevail States of Nature Favorable Unfavorable Decision p = 0.5 p = 0.5 Large plant $200,000 -$180,000 Small plant $100,000 -$20,000 Before publishing your articles on this site, please read the following pages: 1. Every manager is required to execute decisions at various levels of the management cycle beginning from planning to control. 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