managerial decision making - b,e, (cs/it) dr.k.baranidharan, sri sairam institute of technology,...

8/12/2019 Managerial Decision Making - B,E, (cs/IT) Dr.K.Baranidharan, SRI SAIRAM INSTITUTE OF TECHNOLOGY, CHENNAI

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Prepared by :

Dr. K. BARANIDHARAN

PROF.MBA

SRI SAIRAM INSTITUTE OF TECHNOLOGY

CHENNAI

ENGINEERING ECONOMICS

AND

FINANCIAL ACCOUNTING

Sri Sairam Institute of Technology 2


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Managerial decision making


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MANAGERIAL

DECISION MAKING

Decision Making is at the heart of

organizational effectiveness,climate, and health


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6

Decisions and Decision Making

Decision = choice made from

available alternatives

Decision Making = process of

identifying problems andopportunities and resolving them


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Decision making

Decision making is an art of problemsolving.

The process of examining your

possibilities option comparing them,

and choosing a course of action.

Making decision is a crucial skill atevery level

--Peter Drucker--


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Quotes

Be sure you are right --- then go

ahead.

Davy Crocket

Doing whats right isnt hard ---

knowing whatsright is.

Lyndon B Johnson Mine own applause is the only

applause which matters.

Cicero


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MANAGERIAL DECISION MAKING

Decision making is a complex process

Decision making are more based on the goals and objectives of

the business

Where the goals and objectives are specific and well defined,

there decision making is relatively an easy and comfortable

job.

Decision making is the process of selection of the best

alternative from the available alternative courses of action

Managers see decision making as the central job because theymust constantly choose

what is to be done, who is to do it, and

when, where and

occasionally even how it will be done.


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The pros and cons of each of the alternative

course of action by which a goal can be

reached under the given circumstances.

They must know the limitations and

constraints.

They must have necessary information and

ability to analyze and evaluate alternative in

the light of the goal sought.

They must have a desire to arrive at a solution

by selecting the best alternative that

satisfies the goal achievement.


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Importance of Decision Making

The managerial decision problem may have

several alternative solutions. The decision may

pertain to any of the following: example:

problems

Whether to manufacture product Aor Product B

Whether to acquire machine Xor machineY

Whether to promote employee Xor employee Yto the higher position in the organization.

Whether to drop product X and in its place

introduce a new product Z


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Every firm faces managerial decision

problems and every firm may find

several alternatives solutions available.

The firm should identify the alternatives

available, collect the necessaryinformation, evaluate each alternative

carefully based on the available

information and rank the alternatives inorder and choose the best alternative

among the available alternatives.


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6Cs

Construct a clear picture ofprecisely what must be decided

Compile a list of requirementsthat must be met

Collect information onalternatives that meet the

requirements


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Compare alternatives that meet

the requirements.

Consider what might go

wrong factor with each

alternative.

Committo a decision and follow

through with it


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managerial decision making - b,e, (cs/it) dr.k.baranidharan, sri sairam institute of technology,...

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