decision making.

DECISION MAKING:

 Decision making can be defined as a process of choosing an option from various possible alternatives. this helps us in accomplishing the desired result.

  decision making is also the process where the manager responds to the opportunities and threats by analyzing options and making decision about goal and course of action.

RATIONAL DECISION MAKING:

 koontz and o'donnel described decision making as the primary task of managers. but the task is said to be well performed when the decisions made are as rational as possible. Rationality means good reasoning and in in consistency with the purpose.

 it is a systematic process of defining problems, evaluating alternatives and choosing optimal solution

 5   STEPS OF RATIONAL DECISION MAKING:

1.Perception of the problem

2.Analysis of the problem

3 Development of alternative solutions

4 Analysis of alternatives and choosing the best

5 Implementation and control

7 STEPS OF DECISION MAKING PROCESS

1.Identify the decision. The first step in making the right decision is recognizing the problem or opportunity and deciding to address it. Determine why this decision will make a difference to your customers or fellow employees.

2.Gather information.  This requires making a value judgment, determining what information is relevant to the decision at hand, along with how you can get it. Ask yourself what you need to know in order to make the right decision, then actively seek out anyone who needs to be involved.

3.Identify alternatives. It’s likely that you have many different options when it comes to making your decision, so it is important to come up with a range of options. This helps you determine which course of action is the best way to achieve your objective.

4.Weigh the evidence. In this step, you’ll need to “evaluate for feasibility, acceptability and desirability” to know which alternative is best, according to management experts Phil Higson and Anthony Sturgess. Managers need to be able to weigh pros and cons, then select the option that has the highest chances of success. It may be helpful to seek out a trusted second opinion to gain a new perspective on the issue at hand.

5.Choose among alternatives. When it’s time to make your decision, be sure that you understand the risks involved with your chosen route. You may also choose a combination of alternatives now that you fully grasp all relevant information and potential risks.

6.Take action. Next, you’ll need to create a plan for implementation. This involves identifying what resources are required and gaining support from employees and stakeholders. Getting others onboard with your decision is a key component of executing your plan effectively, so be prepared to address any questions or concerns that may arise.

7.Review your decision. An often-overlooked but important step in the decision making process is evaluating your decision for effectiveness. Ask yourself what you did well and what can be improved next time.

CHARACTERISTICS OF DECISION MAKING

1.its the choice between different alternatives

2.sometimes the decision should be taken by considering the environmental impact

3.on assuming about future benefits decisions are taken in the present.

TECHNIQUES FOR SELECTING AN ALTERNATIVE

A. OPERATIONS RESEARCH TECHNIQUES

    it is a method of bringing together available data and information on a specific problem, processing that data in a scientific manner and forming quantitative reports. the methods used are

 1. linear programming

 2. simulation

 3. probability theory for decision making

B. DECISION MAKING - UNCERTAINTY AND RISK

 the degree of risk will vary depending on relative degree of uncertainty. the special measure or techniques used are

  1.risk analysis

 2.decision tree analysis

  

Thus decision making play important role in organization as well as for manager. decision making is the implementation of alternative which is chosen and from where planning, organizing,controlling  and leading process starts.