2. Introduction
• It is a process by which individuals select a course of
action among several alternatives to produce a
desired result.
3. Types of Decision Making
• Basic Decisions: They are unique, one time
decisions demanding large investments.
• Routine Decisions: They are repetitive in nature
and are generally concerned with short term
commitments.
4. Contd..
• Personal Decisions: Decisions to watch
television, to study, etc..
Such decisions are taken by managers in their
individual capacity.
• Organizational Decisions: These decisions are
made by managers in their official or formal capacity.
5. Contd..
• Programmed Decisions: routine, almost
automatic process.
• Managers have made decision many times before.
• There are rules or guidelines to follow.
• Example: Deciding to reorder office supplies.
• Non-programmed Decisions: unusual situations
that have not been often addressed.
• No rules to follow since the decision is new.
• These decisions are made based on information, and a
manger’s intuition, and judgment.
• Example: Should the firm invest in a new technology?
7. Six C's of Decision Making
• Construct a clear picture of precisely what must be
decided.
• Compile a list of requirements that must be met.
• Collect information on alternatives that meet the
requirements.
8. Contd..
• Compare alternatives that meet the requirements.
• Consider the "what might go wrong" factor with
each alternative.
• Commit to a decision and follow through with it.
