DECISION MAKING

and issue in
managerial
decision making
BY: MARISTEL D. LIAGING
DECISION MAKING
- Is termed as the process of finding or identifying
any certain problem/opportunity in order to
resolve them professionally through legal and
logical ways. Besides, it can be said that making
a decision is the preparation for practical
actions.
Concept of Decision-Making
Management
In the field of management, decision-making is known as a
cognitive process, which results in a collection of a set of
actions from current multiple alternatives. At some point,
decision-making is the process which is performed by every
individual in daily life; nobody can deny it. Regarding
businesses, decision-making is a regular process or simply a
habit.
Managerial decision Making

 Managerial decision Making is one of the most

critical processes in every organization.
Successful and effective decision making gives
profitable outcomes, whereas unsuccessful
decision making causes a great loss
Steps in the Decision-Making
Process of a Manager
 Identify Problems- the first step in the process is to
recognize that there is decision to be made. Decision,
they are not made arbitrarily, they result from an attempt
to . address a specific problem, need or opportunity.
 Seek Information- managers seek out a range of
information to clarify their options once they have
identified an issue that requires a decision. Managers
may seek to determine potential causes of a problem,
the people and processes involved in the issue and any
constraints placed on the decision-making process.
 Brainstorming Solutions- having a more complete
understanding of the issue at hand, managers move on
to make a list of potential solutions. This step can involve
anything from a few seconds of though to a few months
or more of formal collaborative planning, depending on
the nature of the decision.
 The use of several tools and techniques is possible in the
entire process, as the management team has to choose
one beneficial decision from a range of many. Besides,
several perceptions can also help identify and solve any
issue. Additionally, a few managers also like to make
decisions on their own or give priority to a collective
decision.
 As decision-making is a hard process, so sometime, it involves
dissatisfaction another party. For preventing all the major conflicts
and hurdles in decision-making, managers should follow the
professional process of making managerial decisions. The following
is the entire process of managerial decision-making
Examples of Decision Making in the
workplace
• Identifying a faulty machine as the source of disruptions in the
production process.
• Facilitating a brainstorming session to generate possible names for a
new product.
• Conducting a comparative analysis of proposals from three
advertising agencies an selecting the best firm to lead a campaign.
• Soliciting input from all staff who have interviewed a job candidate
prior to making a hiring decision.
• Surveying customers to evaluate the impact of a change in pricing
policy.
• Implementing the shutdown of designated plant with excess
manufacturing capacity.
• Generating a list of options for a new regional sales territory.
• Evaluating the impact of several possible cost cutting measures.
• Comparing the leadership potential of a different team members
an choosing a project manager.
• Brainstorming possible themes for a fundraising campaign.
• Analyzing data from focus groups to help select packaging fort a
new product.
• Comparing the strengths an weaknesses of three potential vendors
for processing payroll.
Thank you….