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DECISION MAKING
AKSHAY.MUKUND
USN:-1AP07EC007
PLANNING
• The concept
• Plan is a commitment to a particular course of action
necessary to
achieve specific results
a. A scratchpad
b. Collective thinking ,if
working in team
STEPS IN PLANNING
THE STEPS ARE……
• (i) Establishing Objectives
• (ii) Collection and Forecasting of Information
• (iii) Development of Planning Premises
• (iv) Search of Alternatives
• (v) Evaluation of Alternatives
• (vi) Selection of Plan and Development of Derivative
Plans
Schematic Representation
DECISION MAKING
• Concept:-
• To decide is to come to a definite conclusion for a
follow up action
• Definition- A decision is a course of action which is
consciously chosen for achieving a desired result
• Decision making process pervades all the
managerial actions
• It is an indispensable part of a manager’s job
What is Decision Making?
• Some Definitions…
• 1.Decision making is the study of identifying and
choosing alternatives based on the values and
preferences of the decision maker.
• Making a decision implies that there are alternative
choices ,so choose the one that has,
• (1) has the highest probability of success or
effectiveness and
• (2) best fits with our goals, desires, lifestyle, values,
and so on.
• 2. Decision making is the process of sufficiently reducing
uncertainty and doubt about alternatives to allow a
reasonable choice to be made from among them.
• A reasonable choice should be made , because, every
decision involves a certain amount of RISK.
A fact about decision making…
Some Decision Making Strategies
• If you take the side streets, you will either get home
okay, (since it's only half as fast as the freeway)
• or you will hit another traffic jam,
• slightly worse than a jam on the freeway.
Decision Levels
• 2. Tactical:-Tactical decisions
support strategic decisions.
• 3. Operational:-These are
every day decisions, used to
support tactical decisions.
Techniques for Decision Making
• 1. T-Chart:- A T-Chart is PROS CONS
an orderly, graphic
representation of
alternative features or better higher
points involved in a visibility insurance
decision.
safer poorer gas
• For example, what are the structure mileage
pros and cons of deciding
to buy a sport utility can take off more
vehicle? road expensive
maintenance
• 2.Measured Criteria:-With this technique, you list
the criteria you want your decision to meet and
assign points to each criterion based on its relative
importance in the decision.
Example:- selecting means of transport
for vacation
points train plane car
comfort 30 25 21 18
speed 15 7 15 3
safety 20 13 17 9
food 10 6 2 10
total 75 51 55 40
Thank you