FYBMS - Principles Of Management Module 2 A ppt slide by student.

1. Decision Making
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2. Content
 What is Decision
Making?..........................Pg No 3
 Features……………………….…........Pg
No 4
 Importance…………………..................P
g No 5
 Process Of Decision
Making……….…..Pg No 6
 Techniques Of Decision
Making….…….Pg No8
 Modern Techniques of Decision
Making……..Pg No9
 Programmed Decision Making………..Pg2

3. What Is Decision
Making ?
 Decision Making is the core of
planning functions.
 It is an indispensable component
of the managerial process.
 Decision Making is the process of
identifying and selecting a course
of action to solve a specific
problem.
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4. Feature
 Implies Choice
 Continuous Process
 Intellectual Activity
 Systematic Process
 Based on Feedback
 Goal Oriented
 Time- consuming
 Needs Effective
communication
 Responsible Job
 Situation Based
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5. Importance
 Beneficial to
Organization.
 Achievement of
Objectives.
 Raises morale of the
employees.
 Optimum Utilization of
Resources.
 Efficiency & Employee
Motivation.
 Business Expansion &
Growth. 5

6. Process of Decision Making
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7. Continued…
1) Identifying the Problem: Relevant information
should be gathered.
2) Analsying the Problem: Who must take the
decision- who must be informed.
3) Developing Alternative Solutions: All available
alternatives should be considered. Only realistic
alternatives should be considered.
4) Selecting The Best Solution: The alternative which
gives maximum benefit must be selected.
5) Converting Decision Into Action: Suitable actions
has to be executed effectively.
6) Ensuring Feedback: To decide whether the
decision taken has to be continued or not.
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8. Techniques of
Decision Making
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9. Modern techniques for
Decision making
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10. Programmed Decision
Making
 Deal with routine, repetitive but
complex problems.
 Reference to a predetermined set of
procedures, rules, precedents and
techniques.
 They are well structured and tend to
be consistent over situation and time.
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11. Continued…..
 Linear Programming: When objectives cab be measured
and data quantified.
 Probability Decision Theory: Based on assumptions.
 Payoff Matrix: Best alternative is used.
 Decision Tree: Use of quantitive techniques- decision
tree.
 Game Theory: Useful for determining factors to be
considered in a competitive situation.
 Queuing Theory: Determining the optimum no of
service facilities.
 Simulation: Possible behavior of events is
observed and evaluated.
 Network Techniques: Used for minimizing time
and cost. 11

12. Non-Programmed Decision
Making
 Novel and Non-Repetitive Problems.
 More complicated and challenging.
 Decisions to be taken on an urgent
and priority basis.
 Managers should be open minded and
do not follow the beaten track.
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13. Continued…
 Creative Techniques :
1. Attribute Listing Technique: No idea is accepted or
rejected until all the ideas have been enumerated.
2. Brainstorming Technique: A group of person is given a
complicated problem and they are encouraged to
suggest whatever solutions they have.
3. Delphi Technique: Members are located at different
places but participate through information feedback.
4. Nominal Group Techniques: To restrict inter-personal
communication and to maximize the contributions of
members. Ideas are presented individually.
5. Gordon Technique: Members are kept in dark about the
exact nature of the problem. Members are asked
possible solutions and ideas. 1
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14. Continued…
 Participative Techniques: Employees are
encouraged to participate in the decision-making
process through new ideas, suggestions.
 Heuristic Techniques: Its is a trail and error
method. Its is used for quick decision making.
 Quality Circles: Group of employees meet
periodically to discuss ways of improving the
quality of their products or services.
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15. Correlation between Planning
and Decision Making
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 Decision making is the core of
planning.
 Planning leads to decision making.
 A plan cannot exist unless a decision
is made.
 Planning – what, where, when, how,
which.
 Decision – organizational structure,
procedure, nature, division of nature,
span of control.

16. THANK YOU
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