Decision making

“It is the process of selecting an alternative from two or more alternatives to determine an opinion or a course of action.”

-          GEORGE TERRY

Factors involved in decision making:

Tangible factors:        

·         Profits,

·         Quality of output and

·         all other quantitative factors such as Man-hours, Machine hours.

Intangible factors:

·         Employee morale.

·         The prestige of business concern.

·         Consumer behaviour.

·         Such other abstract factors.

Steps in Decision-making process:

• Defining and analyzing the problem,
• Finding relevant facts.
• Developing alternative solutions.
• Selecting the best solution.
• Converting the decision into effective action.

Decision-making Process

					Formulation
				Selection
			Deliberation
		Investigation
	Conception
Problem

Criteria

Some of the rationales to be adopted indecision-making process are:

• Reduction of cost,
• Maximization of profit,
• saving of time,
• development of managerial skill,
• increasing productivity etc.