Meaning of Decision-Making

Topics: Decision making, Decision theory, Risk Pages: 9 (2430 words) Published: August 30, 2013
ASSIGNMENT
IN
NSTP
(National Service Training Program)
=August 30, 2013=

Logan, Bermar Joi C.
BM1N1
Ms. Reyes.

Meaning of decision making

Decision making is a process of selecting the best among the different alternatives. It is the act of making a choice. There are so many alternatives found in the organization and departments. Decision making is defined as the selection of choice of one best alternative. Before making decisions all alternatives should be evaluated from which advantages and disadvantages are known. It helps to make the best decisions. It is also one of the important functions of management. Without other management functions such as planning, Organizing, directing, controlling, staffing can’t be conducted because in this managerial function decision is very important. According to Stephen P. Robbins, “decision making is defines as the selection of a preferred course of action from two or more alternatives.”

Importance of decision making

1. Implementation of managerial function: Without decision making different managerial function such as planning, organizing, directing, controlling, staffing can’t be conducted. In other words, when an employee does, s/he does the work through decision making function. Therefore, we can say that decision is important element to implement the managerial function.

2. Pervasiveness of decision making:  the decision is made in all managerial activities and in all functions of the organization. It must be taken by all staff. Without decision making any kinds of function is not possible. So it is pervasive.

3. Evaluation of managerial performance: Decisions can evaluate managerial performance. When decision is correct it is understood that the manager is qualified, able and efficient. When the decision is wrong, it is understood that the manager is disqualified. So decision making evaluate the managerial performance.

4. Helpful in planning and policies:  Any policy or plan is established through decision making. Without decision making, no plans and policies are performed. In the process of making plans, appropriate decisions must be made from so many alternatives. Therefore decision making is an important process which is helpful in planning.

5. Selecting the best alternatives:  Decision making is the process of selecting the best alternatives. It is necessary in every organization because there are many alternatives. So decision makers evaluate various advantages and disadvantages of every alternative and select the best alternative.

6. Successful; operation of business: Every individual, departments and organization make the decisions. In this competitive world; organization can exist when the correct and appropriate decisions are made. Therefore correct decisions help in successful operation of business.

Different Kinds of Decision Making
 
Irreversible
The moment you have made up your mind, there’s no turning back. The resolution is as firm as stone. If or when hard luck strikes, and the repercussions are frightful, suitable recompense will be made when there is no reasonable option to the chosen course.

Reversible
Be it before, during or even after formulating an agreement to take action, the decision can be changed if backed by good reason. Reversible decision making ideally permits one to acknowledge a mistake beforehand and alter the non-conducive circumstances instead of enduring the worst.

Rational
Consisting of a sequence of structured steps, rational decision making is designed to rationally develop a desired solution. Ranging from problem and opportunity identification, to selecting preferable alternatives, this method usually gives encouraging results.

Experimental
These decisions can never be finalized until the following results prove themselves to be as pleasing as desired. The course of action will only be decided on reception of positive feedback. It is an effective and smart move and aids...
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