ppt on decision making

1. PRESENTED TO: PRESENTED BY:
DR. RICHA BANERJEE RAHUL KAPOLIYA

2. CONTAINS:
 Introduction of Decision Making
 What is decision making process
 Effective decision making
 Decision making condition
 Decision making under certainty
 Decision making under risk
 Decision making under uncertainity

3. DECISION MAKING
 Decision-making is the selection of a belief or a
course of action among several alternative
possibilities. Every decision-making process
produces a final choice; it may or may not prompt
action. Decision-making is the process of identifying
and choosing alternatives based on the values and
preferences of the decision-maker.it's very
important..

4. DECISION MAKING PROCESS
INCLUDES
• recognizing and defining the
nature of a decision situation
• identifying alternatives
• choosing the ‘best’
effective] alternative and
• putting it into practice.
[most

5. off
employees, or terminating a
strategic alliance.
Sometimes effective decisions must be
made to:
• Optimize some set of factors
such as profits, sales, employee
welfare and market share or
• Minimize loss, expenses or
employee turnover or
• Select best method for going out
of business, laying

6. Managers
about
make
both
decisions
problems
(undesirable
opportunities
situations).
situations) and
(desirable
Cutting costs by 10%
Learning that the company has
earned higher-than-projected
profits
It may take a long time before a
manager can know for sure if
the right decision was made.

7. DECISION-MAKING
CONDITIONS
• Decision
Certainty
Making Under
• Decision
Risk
Making Under
• Decision Making
Uncertainty
Under

8. DECISION MAKING UNDER CERTAINTY
A state of certainty exists when a decision maker knows, with
reasonable certainty, what the alternatives are and what
conditions are associated with each alternative.
Very few organizational decisions, however, are made under
these conditions.
The complex and turbulent environment in which
businesses exist rarely allows for such decisions.

9. DECISION MAKING UNDER RISK
Risk condition is accompanied by the average
level of confusion, moderate risk of taking the
wrong decision.
Decisions such as these are based on past
experiences, relevant information, the
advice of others and one’s own judgment.
Decision is ‘calculated’ on the basis of
which alternative has the highest probability of
working effectively.

10. DECISION MAKING UNDER
UNCERTAINTY
A condition in which decision maker
does not know all the choices , as well
as risk associated with each of them
and possible consequences.
Most of the major decision making
in today’s organizations is done
under these conditions..
Intuition, judgment and
experience always play major roles in
the decision- making process under
these conditions.