Decision Making

External Environment

outside the organization and not typically within the short-run control of top-management.

Internal Environment

organization activities within a firm that surrounds decision-making.

Diagnose/Identify the problem, Analyze the environment, Articulate the problem or opportunity, Develop viable alternatives, Evaluate Alternatives, Make a Choice, Implement Decision, Evaluate and adapt decision results

Decision Making Process

Implementation

carrying out the decision so that the objectives sought will be achieved.

Planning, Organizing, Leading, Controlling

Management Functions

Top, Middle, Lower

Management Levels

Prepare a list of alternative solutions, Determine the viability of each solution, Revise the list by removing those which are not viable

Procedure in developing viable alternatives

Quantitative and Qualitative

Two Approaches in Problem Solving

Quantitative Evaluation

evaluation of alternatives using any techniques in a group classified as rational and analytical

Qualitative Evaluation

evaluation of alternatives using intuition and subjective judgement.

Problem

exists when there is a difference between an actual situation and a desired situation.

Decision-Making

is the responsibility of the engineer manager. The process of identifying and choosing alternative courses of action in a manner appropriate to the demands of the situation. It is the heart of all management functions.

Choice-making

process of selecting among alternatives representing potential solutions to a problem.

Control

refers to actions made to ensure that activities performed match the desired activities or goals, that have been set

Feedback

the process which requires checking at each stage of the process to assure that the alternatives generated, the criteria used in evaluation, and the solution selected for implementation are in keeping with the goals and objectives.