A decision is the end process preceded by deliberation and reasoning. Decision Making is an important function in management. Approaches 10. Such decisions are generally taken as per predetermined rules and procedures and require less application of judgment and skill. Before publishing your articles on this site, please read the following pages: 1. Thus, it is the process of selection of one solution out of many available. It is the end process preceded by deliberation and reasoning. For example, if a company wants to enter a foreign market, if may not be sure about the consumer preference for the product, economic situation, above all the political conditions. The past knowledge, training and experience of the decision-maker plays an important role in intuitive decisions. Following are the important steps of the decision making process. However, decision-making is usually most closely associated with the planning function, inasmuch as it is an important tool for most planning activities. The way people think, both as individuals and in groups, affects the decisions that they make. George Terry says, “Decision-making is the selection based on some criteria from two or more possible alternatives.” Though there are many alternatives available for a manager but he has to choose the best out of them. And in many cases, decision making takes place in iterative fashion, accepting things that work and rejecting those that do not. Discuss the concept of decision-making, its characteristics and The various types of decisions in an industry. In our article: Rational Decision Making, we discuss a classical approach to decision making. A decision needs some sort of prediction for the future on the basis of past and present available information. Every problem has to be restructured and analyzed by the manager by using his skill, judgment and creativity. Some common traps include: Great information about decision making. These decisions influence organizational structure, objectives, working conditions, finances etc. Characteristics of Decision Making. Facts are considered to be the best basis of decision-making. Linear programme can be used for solving problems in areas like production, transportation, warehousing, etc. It is a human process involving to a great extent the application of intellectual abilities. 6. Process and Steps 7. The decisions of Board of Directors or Committees come under this category. Three key factors that are an impediment to good decisions are information quality, human filters and resistance to change. Business has limited resources. 4. Identify the benefits and issues in a hospitality or tourism context using relevant examples - Essay Example. The effect of a decision is to be felt in future so it requires proper analysis of available material and a prediction for the future. Strategic decisions exercise great influence on the functioning and direction of the organization and have long-term implications. The conditions in a new market may so fluctuate that proper decision taking becomes a problem. The need for decision making arises only when more than one alternative exists for doing the work. Let us make an in-depth study of Decision-Making:- 3. He takes a decision as per the dictates of his conscious. 3. This site uses Akismet to reduce spam. It is the selection of one course of action from two or more alternative courses of action. It may not be possible to secure all relevant facts for taking decisions. Decision-making requires something more than a selection. Decision-making is an important job of a manager. A decision represents a course of behaviour chosen from a number of possible alternatives.” The way an executive acts or decides the course of action from among various alternatives is an act of decision-making. Characteristics of Decision-Making 3. Decision-making has become a complex problem. One of the most important tasks of management is to allocate these resources effectively and efficiently to achieve the company’s goals and objectives. Non-programmed decisions are related to problems which are unique and non-repetitive. It is a process of choosing a course of action from among the alternative courses of action. The use of a number of modern techniques may improve the quality of decisions under uncertain conditions. Various decisions are discussed as follows: Programmed decisions are of a routine nature and are taken within the specified procedures. A manager has to develop estimates of the likelihood of the various states of events occurring. 4. 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