DECISION MAKING

- is the fundamental process of management.

 WHAT IS A DECISION?
❑ Is a judgement.
❑ A choice between alternatives
❑ A choice between right or wrong
❑ A choice between almost right and probably wrong
❑ Starts with opinions
❑ Based on the highest level of conceptual understanding, the
action to carry it out should be as close as possible to the
working level as simple as possible.
 EFFECTIVE MANAGERS
❑ expected to make effective decisions.
❑ decisions with significant impact on the entire organization, its
performance and results.
❑Effective manager organizes disagreement because this will protect
him against being taken in by seemingly honest but false or
incomplete information.
❑Effective decision makers, compares the risk of action to the risk of
inaction.
 EFFECTIVE MANAGERS

- an effective executive when confronted with the demand for

another study of previous decision, asks;
1. is there any reason to believe that additional study will
produce anything new?
2. Is there reason to believe that the new is likely to be
relevant?
 DECISION PROCESS

1. Identify the problem.

2. Specify objectives and the decision criteria.
3. Develop alternatives.
4. Analyze and compare alternatives.
5. Select the best alternative.
6. Implement the chosen alternative.
7. Monitor results to ensure the desired results are achieved.
 DECISION PROCESS
1. Identify the Problem
- Is the focal point of the
process.
2.Identify the Criteria
- common criteria often
relate to:
d. maintenance
a. capital
e. Return of investment
b. time
f. Increase in costs
c. profits
g. risks
 DECISION PROCESS
3. Developing suitable alternatives
- much depends on the experience and creativity of the decision
maker as well as the nature of the situation.
4. Analysing and Comparing alternatives
-often benefits from the use of mathematical or statistical
techniques.
5. Selection of the best alternative
- depend on the objectives of the decision maker and the criteria
that are being used to evaluate alternatives
 DECISION PROCESS

6. Implementing the chosen solution

- carrying out the actions indicated by the chosen
alternative.

7. Monitor results to ensure the desired results are achieved.

 REASONS WHY MANAGER INSIST ON
DISAGREEMENT BEFORE DECISION MAKING

1. It is only the safeguard against the decision maker’s

becoming the hostage of the organization.
2. Disagreement alone can provide alternatives to a
decision.
3. Disagreement is needed to simulate the
imagination.
 REASONS FOR POOR DECISION
1. Errors made in the decision process

❑The manager fail to appreciate the importance of each of the

step in the decision process.
❑Manager’s ego can be a factor.
❑The manager’s unwillingness to admit a mistake.
 REASONS FOR POOR DECISION
2. Bounded rationality
❑The limit as control on making decision because of costs,
human abilities, time, technology and availability of
information.
3. Sub – optimism
❑Results form each different department’s attempt to
reaching a solution that is optimum for their department.
 ELEMENTS OF DECISION PROCESS
1. See if the problem was generic and could only be solve through a decision
established by a rule or principle.
2. Define the specifications which the answer to the problem had to satisfy,
that is, of the boundary conditions.
3. The thinking through what is right, that is, the solution which will satisfy the
specifications before attention is given to the compromises, adaptations,
and concessions needed to make the decision acceptable.
4. The building into the decision of the action to carry it out.
5. The feedback, which tests the validity of effectiveness of the decision
against the actual course of the events.
 BUDGETING THE TIME
Time
❑ A unique resource. Its supply is totally inelastic.
❑No matter how high the demand, the supply will not go up.
❑Totally perishable and cannot be stored.
❑Absolutely irreplaceable.
❑People are time consumers and most people are time wasters.
 FIRST THINGS FIRST

❑ Effective managers do first things first and they do one thing

at a time.

❑Timing is the most important element in the success of any

effort.
 EMPLOYEE DISCIPLINE

Discipline
❑A means the management uses to bring employees
behavior under control.
❑An employer’s action against an employee for infraction
of the company policies or rules.
Purpose of discipline

❑To prevent the commission of n act, which violates

policies, rules and regulations of the company.
❑ To protect the interest of the company as well as
those of the employees.
Major components
❑As a means of establishing awareness on the part of the
employees regarding the proper behaviour, attitude, and
conduct in their jobs.
❑As a means of establishing an atmosphere conductive to
working together efficiently.
❑As a means of correcting or reforming employees who
commit any infraction or violation of company rules and
regulations.
Objective of the Disciple
❑To educate employees in the fundamental standards of
behaviour and performance.
❑Be made to realize that the rules and regulations are
enforced for their own benefit and not merely to punish
them.
❑To correct or reform the employee not to penalize him.
 PRINCIPLES OF DISCIPLINE
1. Disciplinary action should not be taken unless there is an
obvious necessity for it.
2. The reasons for disciplinary action should be made clear.
3. Give the man a chance to present his side of the story, and
do not argue.
4. There should be no favouritism or discrimination in any
disciplinary action.
 PRINCIPLES OF DISCIPLINE
5. Reprimand should be given as soon as possible after the
occurrence of the act. Tight timing is important, but first have all
the facts.
6. Forgive and forget. When disciplinary action has been given,
the supervisor should resume a normal attitude toward the
offending employee.
7. Never discipline anyone in the presence of others.
8. The discipline that is inflicted must be just, but sufficiently
severe to meet the requirements of the situation.
 PRINCIPLES OF DISCIPLINE
9. Disciplinary measure should be applied by the immediate superior
of the employee affected, rather than by some other higher executive.
10. In general, negative disciplinary action cannot be successfully
applied to large groups of employees representing a substantial
portion of one’s organization. If there is poor discipline among large
group, it is possible that there is something vitally wrong in the
situation, not disciplinary action.
11. In determining the nature and degree of disciplinary action that is
made necessary by some improper act of an employee, the intent
should be considered.
 PRINCIPLES OF DISCIPLINE
12. Discipline should be constructive. It should show the offender how to
correct his errors and leave him willing an anxious to improve rather
than feel bitter and resentful
13. Except in cases of extremely serious offences, no disciplinary action
should be permitted to take place until the supervisor has actually
talked the situation over with the employee.
14. Discipline should not be administered on an entirely routine basis.
Each case should be treated individually. You cannot discipline a
group to teach a few offenders.
 PRINCIPLES OF DISCIPLINE

15.Maintain a constant and sincere interest in your people’s

welfare on and off the job. This reduces the need for
disciplining to a minimum.

16.Motivation is the secret of good discipline.When a man is

sufficiently motivated, discipline will take care of itself.
 THANK YOU!!!

Prepared by: Reference:

Angelica Ancheta Project Construction Management
David Paul Castillo 2nd Ed. 2000
Roxane Noveras By Max Fajardo
Lea Pascua