Comments (0) Add to wishlist Delete from wishlist. Prohibited Content 3. 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. They also define and establish the relationship of the organization with external environment. There are certain risks involved in decision making and the conditions vary from certainty to complete uncertainty. Such decisions will be sound and proper. A third way to categorize decision making is by the processes used. Decision making involves the selection of one of the alternatives available. Characteristics of Decision Making. Techniques and Methods 6. Factors Involved 5. The manager tries to foresee various possible effects of a decision before deciding a particular one… Business has limited resources. Let's have a look at the decision making process in detail. It will affect the effectiveness of an organization. The impact of these decisions is fairly long because expansion, growth, development and profitability of the organization is linked to them. Decision-making is the end product because it is preceded by discussions and deliberations. Identify the benefits and issues in a hospitality or tourism context using relevant examples - Essay Example. Decision-making is an important job of a manager. Thus the decision-making lies all over the enterprise and covers all the areas of the enterprise. There are a number of tools available which help a manager in taking decisions under such conditions. Decision making is an integral part of all marginal activities including organising, leading and controlling. The selection of an appropriate technique depends upon the judgment of decision-maker. It is a … Decision-making involves careful evaluation and analysis of all the possible alternatives. Whatever has been decided by the leader becomes a guide for others and they also follow suit. Characteristics of Decision-Making 3. Managerial decision helps in maintaining group effectiveness. The essential elements in a decision making process include the following: These stages explain how decision making should take place logically. Following techniques of decision-making are generally employed: Decision-making by intuition is characterized by inner feeling of the person. Majority of corporate decisions involve some level of dissatisfaction or conflict with another party. He thinks about the problem and an answer is found in his mind. A marketing manager, before deciding whether to market a new product or not, will like to see marketing statistics as well as considered opinions before finally making a choice. It is a choice-making activity and the choice determines our action or inaction. A manager may take one decision in a particular set of circumstances and another in a different set of circumstances. For example, when will different groups report for re-orientation? It is a process of choosing a course of action from among the alternative courses of action. Your email address will not be published. Linear programme can be used for solving problems in areas like production, transportation, warehousing, etc. The word “decision “is derived from the Latin word “decido”. Decision making implies choice: Decision making is choosing from among two or more alternative courses of action. In our article: Rational Decision Making, we discuss a classical approach to decision making. Content Guidelines 2. Some decisions are taken in routine while some may have to be carefully evaluated. A manager is not required to go through the problem solving procedures again and again for taking programmed decisions. 4. The traditional methods of taking decision on the basis of intuition, experience, etc. 4. Content Filtrations 6. The supply of information about training programme may be enough. 5. 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. Besides pertinent statistics, opinions are also given due weightage. Approaches 10. The standard and pre-determined procedures and rules are rendered ineffective in programmed decisions because every decision will have to be taken separately. Decision-makers should mature, experienced, knowledgeable and rational in their approach. Everything you need to know about Decision Making.