Features of decision making
Decision-Making The Concept
To come to a decision means to cut off deliberations and to come to a conclusion. Decision-making is a process of selection and the aim is to select the best alternative, A decision is an act of choice wherein an executive forms a conclusion about what must and must not be done in a given situation. It is a conclusion that the manger has reached as to what he or others should do at some later time. It is a solution selected after examining several alternatives. Various authors have defined decision-making as follows:
1. D.E. McFarland, “A decision is an act of choice wherein executive forms a conclusion about what must be done in a given situation, a decision represents a course of behavior chosen from a number of possible alternatives.”
2. George R. Terry, “Decision-making is the selection based on some criteria from two or more possible alternatives.”
3. R.S. Davar, “Decision-making may be defined as the selection based on some criteria of one behavior alternative from two or more possible alternatives. To decide means ‘to cut off or in practical content, ‘to come to a conclusion’.
Decision-making involves two or more alternatives because if there is only one alternative, there is no decision to be made. Frequently, not more than two alternatives are present, as exemplified by the ‘yes’ or ‘no’ type or the ‘do’ or ‘not to do’ type of situation. The following figure shows a situation for which there are five possible behaviour alternatives, A1, A2, A3, A4, and A5. Moving to the right on the figure, of these five alternatives, three are available for choice. A2, for example, is outside the sphere of discretion and hence is eliminated, the decision-maker is unaware of A5. The possible outcomes for each available alternative are A3, 01, A3, O2 and A3 03. Comparing the outcomes of the various available alternatives, A3 01, A3 02 and A3 03 are considered most favourable and hence, A3 is the decision followed. The decision is based on the criterion or basis believed important in the particular situation
Characteristics of a Decision
The definition of decision involves following characteristics :
1.Decision is the choice of the best course among alternatives.
2.Decision is the end process proceded by deliberation and reasoning.
3. Decision-making is a mental process because the final selection is made after thoughtful consideration.
4. Decision involves rationality because through decisions an endeavour is made to better one’s happiness.
5. Decision is aimed at achieving the objectives of the organization.
6. It also involves the evaluation of the available alternatives because only through critical appraisal one can know the best alternative.
7. It may also be negative and may just be a decision not to decide.
8. Decision-making involves a certain commitment. This commitment may be for short run or long run depending upon the type of decision.
9. Decision relates the means to the end.
