Professional Documents
Culture Documents
&
IMPLEMENTATION
By
Prof.B.G.Varma
NICMAR’s - CISC
Hyderabad.
• Decision making is defined as selection of
course of action from among alternatives.
• Plans get translated into action only when
a decision-a commitment of resources ,
direction has been made.
• The main job of a manager is to make a
decisions on what to be done , who to do it
, and when, where and how it will be
done.
Steps in decision making
process
• Premising.
(The anticipated environment in which
plans are expected to operate.)
• Identifying alternatives.
• Evaluating the alternatives
• Choosing an alternative(making decision)
(Alternatives are evaluated in terms of
quantitative and qualitative factors)
Decision Making Techniques
• Marginal analysis
An examination of the additional benefits
of an activity compared to the additional
costs of that activity.
• Cost effective analysis
It is also called Cost Benefit Analysis.
It seeks the best ratio of benefits and
costs.
Major features of CFA
• It focus on the results of the program.
• It helps weigh the potential benefits of
each alternative against its potential cost.
• It involves a comparison of the alternatives
in terms of the overall advantage.
• Experience
Experienced managers usually believe
that the things they have successfully
accomplished and the mistakes they have
made furnish guide lines to the future.
• Experimentation
• An obvious way to decide among
alternatives is to try one of them and see
what happens.
A firm may test a new product in certain
market before expanding its nationwide.
• Research & analysis
• One of the most effective technique for
selecting from alternatives when major
decisions are involved is Research &
analysis. This approach means solving a
problem by first comprehending.
Definition of 'Decision Tree'