DEFINITION OF DECISION MAKING
This is the process of listing out alternatives objectives or course of action and taking a choice by selecting the best alternative among others. Decision is the selection of alternative course of action from available alternatives in order to achieve a given objective. Decision making is one of the crucial activities of management. A decision to increase production in a particular industry could necessitate employment of more labour, increase in plant capacity, acquisition of more equipment.
DECISION MAKING PROCESS OR TYPES
The decision making process is influence by the following factors.
i. Decision making under certainty
ii. Decision making under risk
iii. Decision making under uncertainty
DECISION MAKING UNDER CERTAINTY
A decision made with full knowledge of the outcome of the event. It is a decision with full knowledge of the outcome.
Assuming that a security service organization wishes to determine the cheapest way of handling its services in the following ways.
- If it sub-contract it could cost $7,000 per annum.
- If it handles its own security by hiring four (4) security men it could cost $10,000 per annum.
Choosing from any of the alternative the outcome is fully known. That is decision making under certainty.
DECISION MAKING UNDER RISK
It is assumed that accurate knowledge about the probability distribution of the consequence of each alternative exist. It is those situation where we do not know what the future outcome of a project will be but the probabilities of alternative outcome can be estimated with some degree of confidence through a careful study of past results in similar field.
DECISION MAKING UNDER UNCERTAINTY
The consequence of its choice cannot be defined. There is no exact assurance of the outcome of the alternative. Under this case the manager or the person in question only use his intuition, judgement and experience.
STAGES IN DECISION MAKING
The following steps are followed in making decisions:
1. Formulation of goals: Goals are general abstract end of state or desired intent to fulfill by the management. The goals intent to fulfill will be the guide line for the decision making.
2. Acquiring or seeking information about the alternative course of action: There should be enough information about each course of action in order to aid good decision making.
3. Analysis of the alternative: this is done by examining each course of action against one another in order to determine the best course of actions among the alternatives.
4. Choice: This is the stage of selecting from the alternatives course of actions after which the alternatives must have been well analyzed.
5. Implementation: This is the process of putting the alternative selected into action. This is an important stage, for if this alternative is not well implemented it will lead to a waste of effort
6. Feedback
TYPES OF DECISION SITUATION
The following are types of decision situation in which an individual or organization make decision
This is the process of listing out alternatives objectives or course of action and taking a choice by selecting the best alternative among others. Decision is the selection of alternative course of action from available alternatives in order to achieve a given objective. Decision making is one of the crucial activities of management. A decision to increase production in a particular industry could necessitate employment of more labour, increase in plant capacity, acquisition of more equipment.
DECISION MAKING PROCESS OR TYPES
The decision making process is influence by the following factors.
i. Decision making under certainty
ii. Decision making under risk
iii. Decision making under uncertainty
DECISION MAKING UNDER CERTAINTY
A decision made with full knowledge of the outcome of the event. It is a decision with full knowledge of the outcome.
Assuming that a security service organization wishes to determine the cheapest way of handling its services in the following ways.
- If it sub-contract it could cost $7,000 per annum.
- If it handles its own security by hiring four (4) security men it could cost $10,000 per annum.
Choosing from any of the alternative the outcome is fully known. That is decision making under certainty.
DECISION MAKING UNDER RISK
It is assumed that accurate knowledge about the probability distribution of the consequence of each alternative exist. It is those situation where we do not know what the future outcome of a project will be but the probabilities of alternative outcome can be estimated with some degree of confidence through a careful study of past results in similar field.
DECISION MAKING UNDER UNCERTAINTY
The consequence of its choice cannot be defined. There is no exact assurance of the outcome of the alternative. Under this case the manager or the person in question only use his intuition, judgement and experience.
STAGES IN DECISION MAKING
The following steps are followed in making decisions:
1. Formulation of goals: Goals are general abstract end of state or desired intent to fulfill by the management. The goals intent to fulfill will be the guide line for the decision making.
2. Acquiring or seeking information about the alternative course of action: There should be enough information about each course of action in order to aid good decision making.
3. Analysis of the alternative: this is done by examining each course of action against one another in order to determine the best course of actions among the alternatives.
4. Choice: This is the stage of selecting from the alternatives course of actions after which the alternatives must have been well analyzed.
5. Implementation: This is the process of putting the alternative selected into action. This is an important stage, for if this alternative is not well implemented it will lead to a waste of effort
6. Feedback
TYPES OF DECISION SITUATION
The following are types of decision situation in which an individual or organization make decision
1.
Personal
2.
Group
3.
Organizational
4.
Committees
5.
Quantitative e.g. least square
6.
Programmed
7.
Routinized
It is a situation where by the management or person in question take time to analyses current situation in order to determine ways of reaching or achieving the desired goal in the future. It is actually the beginning of the process of management
Right amount of details should be available.
Availability of alternative course of actions. Two-Three options should be available.
Planning should be base on fact. Availability of fact will help you to plan well.
It should be performed by the right person.
Flexible standard should be follow
Identification of opportunities
Selection of alternative course of action
Formulation of specific target
Implementation
Feedback
2. Single use plan
3. Programme
4. Project
5. Budget
STRATEGIC AND TACTICAL PLAN: Strategic plan is a type of plan that determine the major goals of the organization and analyses the ways to accomplish them. Tactical plan is a type of plan that harmonize the resources of the organization to achieve the stated goal.
SINGLE USE PLAN: this is type of plan that is use to carry out course of action that will probably not be repeated. Example: Building a company factory.
PROGRAMME: This is a plan that involves large set of activities.
PROJECT PLAN: This is type of organization plan that can be formulated and implemented as an independent plan.
BUDGET PLAN: This is a statement showing the quantity of financial resources set aside to get a project done
WHAT IS PLANNING
WHAT IS PLANNINGIt is a situation where by the management or person in question take time to analyses current situation in order to determine ways of reaching or achieving the desired goal in the future. It is actually the beginning of the process of management
PRINCIPLES OF PLANNING
It should be for the right period of time in the future.Right amount of details should be available.
Availability of alternative course of actions. Two-Three options should be available.
Planning should be base on fact. Availability of fact will help you to plan well.
It should be performed by the right person.
Flexible standard should be follow
PLANNING PROCESS
Establishment of objectivesIdentification of opportunities
Selection of alternative course of action
Formulation of specific target
Implementation
Feedback
TYPES OF ORGANIZATION PLAN
1. Strategic and Tactical plan2. Single use plan
3. Programme
4. Project
5. Budget
STRATEGIC AND TACTICAL PLAN: Strategic plan is a type of plan that determine the major goals of the organization and analyses the ways to accomplish them. Tactical plan is a type of plan that harmonize the resources of the organization to achieve the stated goal.
SINGLE USE PLAN: this is type of plan that is use to carry out course of action that will probably not be repeated. Example: Building a company factory.
PROGRAMME: This is a plan that involves large set of activities.
PROJECT PLAN: This is type of organization plan that can be formulated and implemented as an independent plan.
BUDGET PLAN: This is a statement showing the quantity of financial resources set aside to get a project done
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