A decision is a choice made between 2 or more available alternatives.
Decision Making is the process of choosing the best alternative for reaching objectives.
Managers make decisions affecting the organization daily and communicate those decisions to other organizational members.
Some decisions affect a large number of organization members, cost a great deal of money to Carry out, or have a long term effect on the organization. Such significant decisions can have a major impact, not only on the management systems itself, but on the career of the manager who makes them.
Other decisions are fairly insignificant, affecting only a small member of organization members, costing little to carry out, and producing only a short term effect on the organization.
TYPES OF DECISIONS:
Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines.
NON PROGRAMMED DECISIONS:
Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.
5 ELEMENTS OF THE DECISION SITUATION:
- The Decision Makers
- Goals to be served
- Relevant Alternatives
- Ordering of Alternatives
- Choice of Alternatives
DECISION MAKING PROCESS:
Decision making steps this model depicts are as follows:
- Identify an existing problem
- List possible alternatives for solving the problem
- Select the most beneficial of these alternatives.
- Implement the selected alternative.
- Gather feedback to find out if the implemented alternative is solving the identified problem.