DECISION MAKING…..?????

OBJECTIVES:
At the end of the lesson, the reader shall be able to:

 Know the Meaning and Nature of Decision Making

 Give the Characteristics of Decision Making
 Give the types of Managerial Decision Making
 Know the Managerial Styles in Decision Making
 Steps in Decision Making
 Effectiveness in Decision Making
 What is a Decision?

A decision is a choice between two or

more alternatives.
If you only have one alternative or
options, you do not have a decision.
A decision is one when there are
different things you can do and you pick
one of them.
You make lots of decisions everyday!
Some Decisions are easy like…
What to eat in breakfast???
What to wear ???
Some decisions are difficult like…
Choosing a Career???
Choosing Good Friends
Changing a Job
In every situation you have to
search for…..
 What is Decision Making?

 involves the selection of a course of action from among two

or more possible alternatives in order to arrive at a solution for
a given problem.

 process of identifying problems and opportunities and

resolving them.

 making choices from among two or more alternatives.

 NATURE OF DECISION MAKING
 Decision making and problem solving are used
interchangeably in the contest of management because
management is always saddled with problem solving that
needed decision.
 It is the role of managers to solve problems and make decisions
that affect the working of the organization.
 The nature of the decision will often dictate how the manager
approached the solution. The more complex and uncertain the
issues involve, the more likely we employ systematic and
rational decision making technique.
 Simple organizational problems can be solved by issuing policy
guidelines based on current experience and practices.
 CHARACTERISTICS OF DECISION MAKING
1. Lack of Structure – usual state of affairs in managerial decision
making
2. Uncertainty – have insufficient information to know the
consequences of different actions and it cannot estimate the
likelihood of various consequences of their actions.
3. Risk- refers to the possible consequences of the action.
4. Conflict- it exists when there are opposing pressures from the
other sectors in the organizational system.
5. Personal bias- it occurs when conflict is not resolved according
to the personal interest of other parties affected by the decision.
TYPES OF MANAGERIAL DECISION MAKING
 1. Structured or Programmed Decisions
a. Problems are well defined and understood
b. Highly structure
c. Routine and repetitive
d. Solutions can be through policy, procedure, guidelines and
rules
e. Can be solved through numerical analysis and computations

Example:
Deciding to reorder Office Supplies
 1. Non-Structured or Non-Programmed
Decisions
1. The problem is unique in character or poorly defined
2. It is new in the organization
3. No proven answer
4. Variety of possible solutions
5. No rules to follow
6. Largely unstructured

Example:
Should the firm invest in a new technology?
MANAGERIAL STYLES IN DECISION MAKING
The task of the manager is to make effective decisions in
order to make effective decisions in order to solve
organizational problems.
Managers are mandated to mold, create and modify
systems that would deliver the most effective way of
producing more goods and services at the lesser cost.
Due to the complexity of the organizational environment
and growing global competition, managers in today’s
organization could not just sit back, relax and wait for things
to happen.
They have to make things happen.
 1. The Problem Avoider-Smoother
Seeks to maintain the organizational status
quo and acts from making changes.
Tries to maintain current conditions and would
avoid rocking the boat
He would prefer to reconcile conflict and
seeks to smooth over any conflict
Tries to avoid as much as possible problems
that may require time and effort for him to
study.
 2. The Problem Solver

It is the most common of all managers

He solves managerial problems in the
normal course of doing things
He looks for innovations and improvement
He is receptive to change and make
things happened
3. The Problem Seeker

This type of manager seeks out problems

and attempts to deal with them before
they emerge as a major difficulty for the
business.
It involves creative planning through
forecasting of future events in the
environment
HOW TO MAKE RIGHT DECISIONS???
STEPS IN DECISION MAKING
1. Identifying & Diagnosing the Problem
1. What exactly is the problem?
2. How the problem should be solved?
3. Who are the affected parties of the problem?
4. Does the problem have a deadline or a specific
timeline?

Questions to consider
2. Gathering Information
1. What is relevant and what is not relevant to the
decision?
2. What do you need to know before you can
make a decision, or that will help you make the
right one?
3. Who knows?
4. Who can help?
5. Who has the power and influences to make this
happen or to stop it?

Questions to consider
3. Analyze the situation
- What alternative course of action may be available to you?
- What different interpretations of the data may be possible?
4. Develop Hypothesis and Alternatives
- List down all the ideas/options & be creative and positive
- Ask “What if” questions
-Generate all possible solutions to the problems
5. Evaluating Alternatives
-Consider the consequences of your solutions
-List both the negative and positive consequences of your
alternatives
-Which alternative will best achieve your objectives?
6. Select the best alternative
- explore the provisional best alternative for future possible adverse
consequences
-select the right choice
7. Implementing the decision
1. Make the decision
2. Is the decision accepted and supported by the colleagues?
8. Evaluating the results
1. Evaluate the outcome of your decision
2. see whether is anything you should learn and then correct in
future decision making
3. This is one of the best practices that will improve your decision
making skills
EFFECTIVENESS IN DECISION MAKING

1. Use Information Effectively

2. Enhance System for Decision Making
3. Strive for Acceptance
4. Communicate Effectively
5. Delegate Pragmatically
6. Build on Strength
Reporters:

Rica S. Mejaro
Lerma A. Paloyo
Jannette D. Millares