MDM

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BY PADMINI.G M.B.A - I 1

CONCEPT OF DECISION-MAKING : 

CONCEPT OF DECISION-MAKING The word decision has been derived from the Latin Word “Decidere’’ means a cutting away or a cutting off. Thus, a decision involves a cut of alternative between those that are desirable. Source: Prasad L.M, Organizational Behavior, Sultan Chand & Sons, 4th Edition 2

DECISION-MAKING : 

DECISION-MAKING “Decision-Making is a process of selection from a set of alternative courses of action which is thought to fulfill the objective of decision-problem more satisfactorily than others’’- HAYNES and MASSIE Source: Gupta C.B, Business Management, Sultan Chand & Sons, 6th Edition 3 Source: Gupta C.B, Business Management, Sultan Chand & Sons, 6th Edition

CHARACTERISTICS OF DECISION-MAKING : 

CHARACTERISTICS OF DECISION-MAKING Goal-Oriented Selection of alternatives Conscious Uncertain Complex Mental Exercise Positive and Negative Time-Dimension Situational On-going activity Source: Joseph L. Masseie, Essentials of Management, Prentice-Hall of India, 4th Edition 4

DECISIONS OF MANAGERIAL FUNCTIONS : 

DECISIONS OF MANAGERIAL FUNCTIONS PLANNING What is the basic Mission of our organization? What should be our objectives? What strategies and policies should be adopted to attain our objectives? ORGANISING How should the work of the organization be divided? What decisions should be taken by managers at each level? Do we need to change organizational structure? Source: Gupta C.B, Business Management, Sultan Chand & Sons, 6th Edition 5

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STAFFING How many employees will be required in future? How will the best candidate can be selected? What type of Training should be given to the selected candidates? DIRECTING What are the needs of an employees? What type of leadership will best suit for an employees? How best to communicate with an employees? CONTROLLING How should we measure performance? How well we succeeded in attaining our objectives? What corrective action should be taken? 6

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MERITS OF GROUP DECISION-MAKING : 

MERITS OF GROUP DECISION-MAKING More of Information and Knowledge Greater Number of Alternatives Increases Acceptance and Commitment to Decisions Understanding Improves Co-operation and Co-ordination Fosters Creativity and Innovation Source: Joseph L. Masseie, Essentials of Management, Prentice-Hall of India, 4th Edition 8

DEMERITS OF GROUP DECISION-MAKING : 

DEMERITS OF GROUP DECISION-MAKING Waste of Time due to delay in decisions Pressure Members to Conformity Domination of Group Tendency to Pass the Buck Disagreement leads to Conflict and ill-feelings Source: Joseph L. Masseie, Essentials of Management, Prentice-Hall of India, 4th Edition 9

PROCESS OF DECISION-MAKING : 

PROCESS OF DECISION-MAKING 10

SELECTING AN ALTERNATIVE : 

SELECTING AN ALTERNATIVE 11

FACTORS INVOLED IN DECISION-MAKING : 

FACTORS INVOLED IN DECISION-MAKING 12

CONDITIONS OF DECISION- MAKING : 

CONDITIONS OF DECISION- MAKING 13

RATIONAL ITY IN DECISION-MAKING : 

RATIONAL ITY IN DECISION-MAKING “ The selection of preferred behavior alternatives in terms of values whereby the consequences of behavior can be evaluated” _ Herbert A.Simon CRITERIA : 1. Action that satisfies human interests 2. Flexible 3. Consistency Source: Herbert A. Simon, Administrative Behavior, The Free Press 14

TECHNIQUES AIDED IN DECISION-MAKING : 

TECHNIQUES AIDED IN DECISION-MAKING 15

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PROBLEMS IN DECISION-MAKING : 

PROBLEMS IN DECISION-MAKING 19

KEYS TO SUCCESS IN DECISION-MAKING : 

KEYS TO SUCCESS IN DECISION-MAKING Be Problem-Oriented Accuracy of the Information Innovative Alternatives Be Flexible Gain Commitment for Decisions Follow up the Decision Source: Harold Koontz and Heinz Weirich, Essentials of Management,Tata McGraw- Hill, 6th Edition 20

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