Decision making

 We know that there are many functions a manager performs. These functions are planning, organizing, staffing, directing, controlling, leading, coordinating, and decision making. Every function is important and plays an important role in the development of the organization. Among all decision-making is one of the important functions that is performed by the manager and plays a very important role in the development and goal achievement process of the organization.

The process in which the manager chooses one of the best alternatives to achieve his goal this process is called decision-making.

In other words, we can say that there are many alternatives to perform any function of the business. Every alternative requires a particular type of resources like man, money, material, etc. The process in which the manager considers all alternatives and chooses one of the best alternatives according to the capacity, the strength of the organization. This process is called decision-making.

Many experts define decision-making in different ways. Some ways are as below

According to Haynes and Massie, "a decision is a course of action which is consciously chosen for achieving the desired result".

According to R.A.Killian, " A decision in its simplest form is a selection of alternatives".

According to D.E. McFarlane, "A decision is an act of choice - wherein an executive forms a conclusion about what must not be done in a given situation. A decision represents a course of behavior chosen from several possible alternatives".

Nature of decision making:

There are many natures of decision-making. These natures are as below:

1. It is a continuous activity.

2. It is a purposeful activity.

3. It is a scientific activity 

4. It is a dynamic activity.

5. It is a pervasive activity.

6. It is a social activity.

7. It is a part of planning.

8. It is a broad possessing aspect.

Type of decision 

There are many types of decisions. These types are as below.

1. Programmed decisions -It is the first type of decision. The decision that is made to improve the effectiveness of policy, rules, and regulations of the organization to perform the function of business by the effective and efficient way this type of decision is called programmed decision. 

2. Non programmed decision - It is also an important type of decision. The decision that is made occasionally to perform the rules regulation according to the current condition of the market and economy this type of decision is called none programmed decision.

3. Major Decision- It is also an important type of decision. There are many functions of the business. These functions are production, sales, supply, warehouse, trade, and so on. If any decision is taken that belongs to the main function of business this type of decision is called a major decision 

4. Minor Decision-There are many other function organization perform. These are demand forecasting, advertising, and so on. If any decision belongs to any above-explained functions such type of decision is called a minor decision.

5. Simple decision- It is called day-to-day decision. Many problems occur in a day-to-day form. The decision that is used to consider other alternatives and choose one of the best alternatives to performing day-to-day activity effectively and efficiently this type of decision is called a simple decision.

6. Complex decision- It is also an important type of decision. Many complex situations happen before the organization with a situation that may bring a negative impact on the organization. The decision that is taken to solve such type of situation this type of decision is called a complex decision.

7. Strategic decision- It is also an important type of decision. The process in which the manager knows all policy, programs, rules, regulations, the law of competitors and makes one of the best strategies that are better than competitors this type of decision is called strategic decision.

8. Tactical decision- It is also an important type of decision. The process in which the Manager chooses one of the best alternatives according to the positive feature of the alternative. This type of decision is called a tactical decision.

9. Individual decision- The decision that is taken by the Manager to perform the function of the organization according to the positive features of the employee. This type of decision is called individual decision.

10. Group decision- The decision that is taken by the manager according to the positive feature of the human resource force. This type of decision is called group decision.

Steps of decision making:

There are many steps of decision-making. These steps are as below:

1. Identify the problem- It is the first step of decision-making. There are many problems before the organization. Some problems are very harmful for the organization whereas some problems are less harmful. As a manager, we find out the problem that is more harmful for the organization and we want to solve it as soon as possible. 

2. Find out alternatives- It is the second step of the decision-making process. There are many alternatives to solve any problem. The manager finds out all alternatives that should be taken to solve the problem of the organization.

3. To analyze the alternatives- There are many alternatives to solve any problems. The requirement, cost, merit, demerit of every alternative are different from each other. The manager compares the requirements of all alternatives and ranks the alternatives. 

4. To choose the best alternatives- After comparing the alternatives manager selects one of the best alternatives that will accept by an organization to solve the problem.

5. Implement the decision- After selecting the best alternative. The manager makes policy, programs, rules, regulation that concerns decision and implements it inside the organization. 

6. Follow up- It is the last step of decision making after implementing the decision manager takes feedback from the market and sees the problem is minimized and the performance of the organization improves. Then they continue it.

Decision making in different conditions:

There are many conditions present in the business. These are normal conditions, certain conditions, and uncertain conditions.

1. Normal condition- It is the first condition of the business. The condition in which all elements of environment towards according to the normal way. This type of condition is known as a normal condition. In this condi, managers do not forecast maxima and minima to coming days er and day forecast all these things in a certain direction. This type of condition is called normal condition.

2. Certain condition- It is the second type of condition of decision making. The process in which companies forecast all things and things are according to their forecast. Then they decide all the functions activities of the business. This type of decision is called a certain decision.

3. Uncertain decision- It is the third type of condition of decision making in which all events of business happen without our forecasting. This type of condition is called uncertain decision. The decision-making process of all conditions is variable from one another.

 Importance of decision making:

The importance of decision-making is very wide. It plays an important role in survival, growth, profit maximization, and another type of goal achieving processes. The main importance of decision making is as below:

1. Optimum utilization of resources- It is the first role and importance of decision making. Every organization has a scarcity of resources whereas he has to perform many functions. So, with the help of appropriate decision-making organization achieves the goal of the organization by appropriate decision-making.

2. To solve the problem - Today is the 21st century. It is the age of the globalized economy age. There are many types of problem organization face. These are economic problems, none economic problems, production problems, marketing problems, and so on. With the help of appropriate decision-making, organizations can solve all types of problems.

3. To increase growth- It is also an important role of decision making. Every organization wants to grow. These grow are in the area of the market, production, sales, and so on. Decision-making helps us to grow in all sectors of the organization.

4. To achieve an objective- There are many objectives before the organization. These objectives are survival, sales revenue maximization, profit maximization, and so on. Decision-making helps us to achieve objectives.

5. To increase production- There are many functions of the business. These are production, demand forecasting, supplying, pricing, advertising, warehousing, communicating, distributing, financing, and so on. Production is the first and very important function. Decision-making helps us to maximize production.