For PG Students*

DecisionA choice from two or more alternatives

ProblemA discrepancy between an existing and a desired state of affairs*

*STEPS IN DECISION MAKING PROCESS

Rational decision-making:Describe choices that are consistent and value maximizing within specified constraints.

Bounded Rationality decision-making:Behavior that is rational within the parameters of a simplified decision-making process, which is limited (or bounded) by an individuals ability to process information

Intuition decision-making:a subconscious process of making decision on the basis of experience and accumulated judgment

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Directive StyleA decision making style characterized by low tolerance for ambiguity and a rational way of thinking.Theyre efficient and logicalDirective type managers makes fast decisions and focus on the short run

Analytical StyleA decision making style characterized by a high tolerance for ambiguity and a rational way of thinkingmore information is sought before making decision and consider more alternatives

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Behavioral StyleA decision making style characterized by a high tolerance for ambiguity and an intuitive way of thinkingTheyre concerned about the achievements of subordinates and are receptive to suggestion from others

Conceptual StyleA decision making style characterized by a high tolerance for ambiguity and an intuitive way of thinking.Very broad in the their outlook and will look at many alternativesThey focus on the long run and very good at finding creative solutions to problem

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Certainty: Reliable and required information available on which managers are sure of the outcomes

Risk: Factual but insufficient data available. Mathematical models are used to cut down the risk factor

Uncertainty: Only little and unreliable data

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Well structured-programmed Decisions: Routine and repetitive in nature such as rules, procedures and organization Structure

Poorly structured-non programmed DecisionsNon-repetitive and unique issuesLinear programming, Probability Theory, Game Theory, Queuing Theory and network techniques such as CPM an PERT

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Strategic Decisions by top management

Tactical Decisions by lower end managers for operations

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Brain StormingDelphi TechniqueNominal Group TechniqueSynectics*

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