Decision Making in Management

Definition: Decision making is the process of selecting a course of action from multiple options, based on available information, to achieve a specific goal or solve a problem.

Types of Decisions:

Programmed Decisions: Routine, repetitive, and well-structured decisions made using established procedures and rules.
Non-Programmed Decisions: Unique, complex, and unstructured decisions requiring creative problem-solving and judgment.

Decision Making Process:

Problem Identification: Recognize and define the problem or opportunity.
Information Gathering: Collect relevant data and information.
Alternative Generation: Develop potential solutions or alternatives.
Alternative Evaluation: Analyze and compare the pros and cons of each alternative.
Choice: Select the best alternative.
Implementation: Put the chosen alternative into action.
Review and Feedback: Monitor and evaluate the outcome, and make adjustments as needed.

Decision Making Models:

Rational Model: A systematic, step-by-step approach to decision making, considering all available information and options.
Behavioral Model: A more realistic approach, acknowledging cognitive biases and limitations in decision making.
Intuitive Model: A fast, instinctive approach, relying on experience and intuition.

Decision Making Styles:

Autocratic: One person makes the decision, without input from others.
Democratic: Involves input and consensus from multiple individuals or groups.
Consultative: The decision maker seeks input from others, but makes the final decision.

Factors Influencing Decision Making:

Cognitive Biases: Systematic errors in thinking, such as confirmation bias or anchoring bias.
Emotional Influences: Personal feelings and emotions that can affect decision making.
Organizational Culture: The values, norms, and expectations of the organization.
Time Constraints: The pressure to make a decision within a limited timeframe.

Decision Making in Management

Definition and Types of Decisions

Decision making is the process of selecting a course of action from multiple options to achieve a specific goal or solve a problem.
There are two types of decisions:
Programmed Decisions: Routine, repetitive, and well-structured decisions made using established procedures and rules.
Non-Programmed Decisions: Unique, complex, and unstructured decisions requiring creative problem-solving and judgment.

Decision Making Process

The decision making process consists of seven steps:
Problem Identification: Recognize and define the problem or opportunity.
Information Gathering: Collect relevant data and information.
Alternative Generation: Develop potential solutions or alternatives.
Alternative Evaluation: Analyze and compare the pros and cons of each alternative.
Choice: Select the best alternative.
Implementation: Put the chosen alternative into action.
Review and Feedback: Monitor and evaluate the outcome, and make adjustments as needed.

Decision Making Models

There are three decision making models:
Rational Model: A systematic, step-by-step approach to decision making, considering all available information and options.
Behavioral Model: A more realistic approach, acknowledging cognitive biases and limitations in decision making.
Intuitive Model: A fast, instinctive approach, relying on experience and intuition.

Decision Making Styles

There are three decision making styles:
Autocratic: One person makes the decision, without input from others.
Democratic: Involves input and consensus from multiple individuals or groups.
Consultative: The decision maker seeks input from others, but makes the final decision.

Factors Influencing Decision Making

Cognitive Biases: Systematic errors in thinking, such as confirmation bias or anchoring bias.
Emotional Influences: Personal feelings and emotions that can affect decision making.
Organizational Culture: The values, norms, and expectations of the organization.
Time Constraints: The pressure to make a decision within a limited timeframe.