1. Decision-making is a vital part of business organization and management. Decision-making and Risk-taking happens to all levels of the organizational hierarchy.

2. Information Alternatives Criteria Goals Value Preference Decision Quality Acceptance 3. Decision-making is the study of identifying and choosing alternatives based on the values and preference of the decision maker. Decision-making is the process of sufficiently reducing uncertainty and doubt about alternatives to allow a reasonable choice to be made from among them. 4. Programmed Decisions Non-programmed Decisions Strategic Decisions Tactical Decisions Operational Decisions 5. Decisions Whether Decisions Which Contingent Decisions 6. yes / no, either / or decision that must be made before we proceed with the selection of an alternative. 7. involve a choice of one (1) or more alternatives from among a set of possibilities. 8. decisions that have been made but put on hold until some conditions are met. 9. 1. Be honest 2.Accept the responsibility 3.Use time wisely 4.Have confidence 10. 1. Have unrealistic expectations 2.Make snap decisions 3.Take unnecessary action 4.Fool yourself 11. 1. Continuous training and development of managers in decision-making skills. 2. Complete good information about the problems and alternatives. 3. Management skills in analyzing information and handling its shortcomings. 12. 4. Experience and natural ability in decision-making. 5. Risks and attitudes to risk. 6. Human factors. 13. Internal Constraints External Constraints 14. 1. Availability of funds and resources. 2.Existing Business Policy. 3.Peoples Abilities and Feelings. 15. 1. Constitutional mandate, laws, rules and regulations 2. Competitors 3. Lack of technology 4. Economic climate / condition 16. 5. Legislations 6. Lack of supplies (material and manpower) 7. Lack of manpower . Lalic, Jennyleen B. 17. (1) Size up the situation (2) Set goals and priorities 18. (1) Considered your option (2) Dont make unnecessary decisions 19. (1) Use your time wisely (2) Seek advice (3) Use all resources 20. (1) Be open (2) Dont judge (3)Record your ideas 21. (1) Think Ahead (2) Be Practical (3)Be Creative 22. (1) Take action (2) Inform others (3) Follow up your plan 23. (1) Free discussion (2) Developmental discussion 24. 1. Recognize the problem 2. Analyze the problem 25. 3. Consider your goals 4. Look for alternative 26. 5. Select the best alternative 6. Put your decision into action 27. 1.Become aware of your own and familys values. 2.Develop sensitivity to the individual responses of persons affected by the decision. 3.Be objective in viewing the problem that demands decision. 28. Decision that is REVERSIBLE- practice making quick decisions when the outcome involves only small changes. Decision that is NOT REVERSIBLE- allow time to thoroughly consider all alternatives. 29. There are four major Benefits of Planning: 1. Planning allows the establishment of independent goals. 2. Planning provides a standard of measurement. 3. Planning converts values to action. 4. Planning allows limited resources to be committed in an orderly way. 30. Only the risk takers are truly free. There is really no such thing as permanent security in anything on earth. You are supposed to be afraid when you risk. Risk taking normally involves a degree of separation anxiety. 31. 1. Decide whether the risk is necessary or desirable. 2. Risk for the right reasons and when you are calm and thoughtful. 3. Have a goal. 4. Determine the possible loss as well as the gain. 5. Try to make an accurate estimate about the probability of each case. 6. When possible, take one risk at a time 7. Use imaginary role playing to work through the various possibilities, so that you will be mentally prepared for any outcome. 8. Use a plan. 9. Act decisively. 10. Dont expect complete success. 32. 1. Dismissing extremely remote or unrealistic possibilities. 2. Insofar as possible, avoid catastrophes. 3. Recognize the tradeoffs. 4. Maximize expected values.