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