DECISION

MAKING
DECISION MAKING
According to Drucker
Decision making is a judgement. It is a
choice between right and wrong. It is
at best a choice between almost
right and probably wrong.
Characteristics & Nature
Decision making is a process.
Intellectual activity
Helps in Solving Problems
Helps in Accomplishment of Goals
Human and Social Process
All Pervasive
Involves Risk Taking
Decision Levels
Highest level
Concerns general directions,
long term goals, philosophies
and values
Support strategic decisions
Medium range, medium
significance, with moderate
consequences
Everyday decisions, used to
support tactical decisions
Short term, short range and
usually low cost
DECISION LEVELS
Operatio
nal
Tactical
Strategic
Impoitance
organizational efficiency.
To cope stress in personal & professional
life.
Better time management.
optimum utilization of resources.
cooperation & coordination .
Helps one to understand whether a
situation is right or wrong & to act
accordingly.
Six Cs of DECISION MAKING
1. CONSTRUCT
2. COMPILE
3. COLLECT
4. COMPARE
5. CONSIDER
6. COMMIT
Process
Decision Making in ones
Personal life
Listing the advantages and disadvantages of each
option, and then taking a decision.
Flipping a coin
Accepting the first option that seems to achieve the
desired result
Agreeing to a person in authority or an expert
Decision Making in Business
and Management
SWOT analysis
evaluation by the decision making individual or organization
of Strengths, Weakness, Opportunities and Threats with respect
to desired end state or objective.
Analytic hierarchy
procedure for multi level goal hierarchy
Buyer decision process
transaction before, during and after a purchase.
Cost-benefit analysis
process of weighing the total expected costs vs. the total
expected benefits
Effective Decision Making
Steps to effective decision making: -
You have a problem ? understand it!
Understood the problem ? now think clearly!
Convert the thought into firm
commitment!
Once you have committed there is no
alternative!
Give it your all & achieve your desire for real!
What is your
next step?
0
100
200
300
400
ABC Pvt
.Ltd
XYZ
Pvt.Ltd
ABC Pvt .Ltd XYZ Pvt.Ltd
2009-10 250 250
2010-11 400 200
PROFIT
Profit is
in crore
rupees
PRESENTATION MADE BY :-
SAHIL KULKARNI-19
SHABBIR MEHTA-54
NILESH JAIN-15
SIDDHARTH JAIN-42
YATIN RAJ GHOLAP-58
VISHAL KHANDELWAL-52
SANKET NICHANI-25