WHAT IS DECISION MAKING PROCESS? Decision making process is a strategic activity to organizational, economical, and societal life. Decision making process includes being in a multi- faceted event, comparing various alternatives and making a choice about best solution.

IMPORTANCE OF DECISION MAKING  Decision-making makes it possible to adopt the best course of action in carrying out a given task.  By choosing the best method of doing any work, decision-making ensures optimum use of the enterprise resources such as; men, machines, materials and money.  Decision-making helps to find a solution to any problem in a work place.

 Decision-making helps to identify the best course of action in each given situation and thereby promotes efficiency.  The conflicts in an organization are resolved through decisions.

DECISION MAKING STEPS STEP 1 Identify the problem STEP 2 Researching and collecting information STEP 3 Generate good alternatives STEP 4 Evaluate alternatives to decide which is best STEP 5 Decide on and implement the best alternative STEP 6 Follow-up on the decision

Step 1: Identify the problem The decision maker must be sure he or she has an accurate grasp of the situation. If the problem is stated incorrectly or unclearly then your decisions will be wrong. Step 2: Researching and collecting relevant information The decision maker requires as much information as possible because having all the facts gives the decision maker a much better chance of making the appropriate decision.

The decision maker attempts to come up with as many alternatives as possible. The better options you consider the more comprehensive your final decision will be. Brainstorming is probably the most popular method of generating ideas. Step 3: Step 3: Generate good alternatives

This is where the analysis begins, the alternatives are evaluated and the best one is selected. Decision Matrix and SWOT Analysis Methods can be used on decision making process in workplaces. Step 4: Choose the best alternative

Step 5: Decide on and implement the best alternative A decision has no value unless you implement it. When the decision-makers are satisfied with the alternatives and analyses, they choose one management alternative for implementation.

Step 6: Follow up on the decision After the decision has been implemented, the decision maker must follow-up on the decision to see if it is working successfully. If the implemented decision has not produced the desired result, once again a decision must be made.

TYPES OF BUSINESS DECISIONS Programmed Decisions The decision maker already knows what the solution and outcome will be. ordering production supplies, choosing the discount rate for an order, deciding the annual raise of an employee. Non-Programmed Decisions Neither the appropriate solution nor the potential outcome is known. merging with another company, creating a new product, expanding production facilities.

Strategic Decisions Effect the long-term direction of the entire company. Are typically made by top managers. Examples; to focus efforts on a new product, to increase production output. Tactical Decisions Focus on more intermediate-term issues. Are typically made by middle managers. Include to pick an advertising agency to promote a new product, to provide an incentive plan to employees to encourage increased production.

Operational (Administrative) Decisions Focus on day-to-day activities within the company. Are typically made by lower-level managers. Include scheduling employees, handling employee conflicts, purchasing raw materials needed for production.

DECISION MAKING METHODS Authoritarian In Authoritarian Model, the team leader makes whatever decisions have to be made and those decisions are assumed to be final. Sub ‑ Group A small part of the team or total group gains sufficient influence to force the team leader or the group to adopt a decision.

Majority In Majority Method, a vote is taken and the majority (51%, 67% or 75%) depending on what level of majority is previously agreed upon decides the issue. Consensus In Consensus decision-making, every member of the group must agree to the decision before it can be adopted.