discuss the characteristics of decision making

Image Guidelines 5. The leader of the group or an important manager of a concern sets the precedent and others silently follow that decision. Generally, strategic or other important decisions are taken by groups instead of individuals because of risk involved. Meaning and Definitions of Decision Making 2. One of the most important tasks of management is to allocate these resources effectively and efficiently to achieve the company’s goals and objectives. It helps managers by providing scientific basis for solving organizational problems involving interaction of components of the organization. Facts are considered to be the best basis of decision-making. Past experience of a person becomes a good basis for taking decisions. Decision problems necessitate a choice from different alternatives. There are certain risks involved in decision making and the conditions vary from certainty to complete uncertainty. When a manager is required to take a decision, he is supplied with information and other inputs needed for this purpose. Steps of Decision Making Process. Ans. The increasing use of computers has helped in systematic analysis of data. Learn how your comment data is processed. 3. The new situations should be analyzed on the basis of past knowledge. These decisions remain consistent for a relatively longer period of time and over many solutions. The important characteristics of decision-making are as follows: ADVERTISEMENTS: 1. The impact of these decisions is fairly long because expansion, growth, development and profitability of the organization is linked to them. It always has a purpose. It is a process of choosing a course of action from among the alternative courses of action. Such decisions will be sound and proper. All problems may not require decision- making but merely the supply of information may be sufficient. Traditionally, it is argued that problem solving is a step towards decision making, so that the information gathered in that process may be used towards decision-making. Decision making involves the selection of one of the alternatives available. Decision Making In Management 2. When decisions are taken by two or more persons, these are known as group decisions. The material requiring a decision may be available but still a decision may not be reached. For any business problem, alternative solutions are available. In a risk situation, factual information may exist but it may be insufficient. Non-programmed decisions are usually grade for solving unstructured problems which keep on changing from time to time. What Is Decision Making Process 3. Group decisions are normally important and have long-term implications for the concern. Your email address will not be published. In practice, the influence of various behavioral issues cannot be overlooked. The selection of best alternative will be made only when pros and cons of all of them are discussed and evaluated. The foregoing description reveals the following characteristics of decision making: (i) Decision making is a process of selection or choice among alters native courses of action. Principles 9. A manager has to develop estimates of the likelihood of the various states of events occurring. Managers have to consider these alternatives and select the best one for actual execution. Decision-making is a focal point at which plans, policies, and objectives are translated into concrete actions. Such decisions are made under new and unfamiliar circumstances. It is a human process involving to a great extent the application of intellectual abilities. Decision making is a responsible job as wrong decisions prove to be too costly to the Organization. Following techniques of decision-making are generally employed: Decision-making by intuition is characterized by inner feeling of the person. may be better taken by a group of specialists than by an individual. 3. A decision-maker tries to visualize the conditions in future and take decisions accordingly. And in many cases, decision making takes place in iterative fashion, accepting things that work and rejecting those that do not. Sometimes the fault lies not in the decision-making process, but in the mind of the decision-maker. These decisions influence organizational structure, objectives, working conditions, finances etc. The estimates may be based on past experience, other available information or intelligence. Tactical decisions are more specific, functional and have short-term implications. thanks, Your email address will not be published. Such decisions are taken by referring to established rules, procedures and standards. This method is based on this assumption that there exists a linear relationship between variables and that the limits of variations could be ascertained. Bad decisions take place when the alternatives are not clearly defined; the right information is not collected and the costs and benefits are not accurately weighed. Process and Steps 7. A decision based on facts has its roots in factual data. In our article: Rational Decision Making, we discuss a classical approach to decision making. Privacy Policy 8. Everything you need to know about Decision Making. Everyday we have to make one decision or the other. Characteristics of Decision Making: From the above definitions the following characteristics can be listed below: It is a process of making a choice from an alternative course of action. For example, a decision regarding adding a new product, purchase of new machinery, opening a new branch, appointment of a new chief executive are all non- programmed decisions and require separate attention for each decision. Decision-making has become a complex problem. The person sees and understands things in terms of concepts with which he is familiar. It is always related to the environment. Linear programme can be used for solving problems in areas like production, transportation, warehousing, etc. So decisions are made in an environment of at least some uncertainty. Characteristics of Decision-Making 3. Such decisions require more resources, judgment and skill. It is a choice-making activity and the choice determines our action or inaction. Decision making is almost universally defined as choosing between alternatives. The information has become a major tool in managerial decision-making. The effect of a decision is to be felt in future so it requires proper analysis of available material and a prediction for the future. A decision taken at present will have effect in future. Approaches 10. The conditions under which decisions are taken are as follows: Under the conditions of certainty, people are reasonably sure about what will happen when they take a decision. are replaced by systematic techniques based on analysis of data. Decision-making is based on rational thinking. Decision-making is based on rational thinking. It is important to differentiate between problem solving, or problem analysis, and decision-making. Let's have a look at the decision making process in detail. Strategic decisions relate to policy matters and need the development and analysis of alternatives. A manager may take one decision in a particular set of circumstances and another in … Decision-making is a process to arrive 5.Discuss the characteristics of group decision making. Most of the business decisions are taken under risk conditions. Required fields are marked *. Content Guidelines 2. Report a Violation, Decision Making : Definition, Characteristics and Importance. Meaning of Decision Making: Decision Making is an important function in management, since decision-making is related to problem, an effective decision-making helps to achieve the desired goals or objectives by solving such problems. However, decision-making is usually most closely associated with the planning function, inasmuch as it is an important tool for most planning activities. Plagiarism Prevention 4. Since the manager does not have proper information on which he can develop, the best he can do is to be aware that he has no chance of predicting the events. It is the end process preceded by deliberation and reasoning. In terms of managerial decision making, it is an act of choice, wherein a manager selects a particular course of action from the available alternatives in a given situation. The word “decision “is derived from the Latin word “decido”. It involves a time dimension and a time lag. Decisions help in solving problems or resolving conflicts. These decisions once taken cannot be easily reversed. This is a fundamental issue to strategic decisions. Experience should not be followed blindly. These decisions are concerned with routine and repetitive matters arising out of the working of the organization. It is a process of choosing a course of action from among the alternative courses of action. Managerial decision helps in maintaining group effectiveness. There are typically three levels of management which are top-level, middle-level, and first-level. Content Filtrations 6. 4. So, decisions often tend to be a balancing of the firm’s various interest groups rather than the most optimal solution. 5. The use of a number of modern techniques may improve the quality of decisions under uncertain conditions.

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