INTRODUCTION

Decision making is the fundamental process of management.

Most of the efforts of managers are related to this process.
Unfortunately, decisions do not always turn out as planned.
Who make decisions? Only executive make decisions. This is by
virtue of his position or authority. Decision-making is only one of
manager’s tasks. It is but a small fraction of his time. but to make
decisions is his specific work.
 EFFECTIVE
DECISIONS

- Judgement
- It is rarely a choice
between right or wrong
- Opinion must also
take responsibility
THE EFFECTIVE MANAGERS
• Effective managers are expected to make
decisions. Decisions with significant
impact on the entire organization, its
performance and results, defines the
manager.
 DECISION
PROCESS
steps:

• Identify the problem

• Specify objectives and the decision criteria
• Develop alternatives
• Analyze and compare alternatives
• Select the best alternative
• Implement the chosen alternative NEXT
 IDENTIFYING THE PROBLEM

• is the focal point of the process. Solutions

must address the basic problem not the
symptoms.
 SPECIFY OBJECTIVES AND THE
DECISION CRITERIA
• Capital Risks
• Time Increase in cost
• Profits
• Maintenance
• Return of investment
DEVELOPING SUITABLE ALTERNATIVES

• The ability to satisfactorily handle problems often

depends on the degree of success one has in
developing suitable alternatives. Much
depends on the experience and creativity of the
decision maker as well as on the nature of the
situation.
 SELECTION OF THE BEST
ALTERNATIVE

• will depend on the objective of the

decision maker and the criteria that are
being used to evaluate alternatives
 ANALYZING AND COMPARING
ALTERNATIVES

• often benefits from the use of mathematical

or statistical techniques
IMPLEMENTING THE CHOSEN
SOLUTION

• simply mean, carrying out the actions

indicated by the chosen alternative. If
the alternative selected to do nothing, no
action will be required to implement
 REASONS FOR POOR DECISIONS

Sometimes despite the best efforts of the manager, a decision

turns out to be the poor due to unforeseeable circumstances.
failure can be traced on some combination of the following
reasons:
1. Errors made in the decision process
2. Bounded rationality
3. Sub-optimism
• In many cases, the manager fails to appreciate the
importance of each of the above step in the decision
process.
• The manager's ego can be a factor.
• A part of the problem may be of the manager's
unwillingness to admit a mistake.
• Bounded Rationality. A term which refers to the limit as
control on making decision because of costs, human abilities,
time, technology and the availability of information.
• Sub-Optimization. It is the result from each different
departments attempt reaching a solution that is optimum for
their department.
 ELEMENTS OF DECISION PROCESS

There are five elements in the process of decision making.

1. See if the problem was generic and could only be solved

through a decision established by rule, or principle.
2. Define the specifications which the answer to 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, adaptions, and concessions needed
to make the decision acceptable.
4. The building into decision of the action to carry it out.
5. The feedback, which tests the validity and effectiveness
of the decision against the actual course of events.
The second element in the decision process is clear
specifications as to:

1. What the decision has to accomplish?

2. What are the objectives, the decision has to reach?
3. What are the minimum goals it has to attain?
4. What are the conditions it has to satisfy?
BUDGETING THE TIME

 Effective manager know the

time is limiting factor.
 Time unique resource. Its
supply is totally inelastic.
 Time is absolutely
irreplaceable.
 The main task in the work of a manager is the time spent
working with people. By nature, people are time consumers
and most people are time wasters. To spend a few minutes
with people is simply not productive.
Mixing personal relations and work relations is time
consuming. The more people are together, the more time
will be consumed for interactions. Thus, less time will be
available to them for work accomplishment and result.
 People decisions are time consuming. Just to get the
work done with people requires lots of time, thought and
judgement.
Time waste is often result from over staffing. The
symptom of over staffing could be if the chiefs and of
course the manager in particular spend more of their time,
on problems of human relations, on feuds and frictions, on
disputes and questions of cooperation etc.
 MEETINGS

Defined as concession to deficient

organization for one either meets or one works.
Too many meetings is indicative of poor
job structures and wrong organizational
components. They signify that responsibility is
spread out and that information is not directed
to the people who need it.
 FIRST THINGS FIRST
The one secret of effectiveness is
concentration. Effective managers do first thing
first and they do one thing at a time.
What one postpones, one actually
abandons. Timing is the most important
element in the success of any effort. To a year
later what it would have been smart to do a
year earlier is almost a sure recipe for
frustration and failure.
EMPLOYEE DISCIPLINE
• Discipline is a means that management uses to bring
employees behavior under control. It’s purpose is not
retribution or vengeance but to impress upon the employee the
need to do things in a prescribed manner. Discipline is an
employer’s action against an employee for infraction of
company policies or rules. The purpose of discipline is
preventive; that is to prevent the commission of an act, which
violates the policies, rules, and regulations of the company. It is
a form of control to protect the interests of the company as well
as those of the employees.
 CONTROL WITHIN THIS CONTEXT
HAS THREE MAJOR DIMENSIONS:
Control within this context has three major dimensions:
1)As a means of establishing awareness on the part of the
employees regarding the proper behavior, attitude, and conduct in
their jobs.
2)As a means of establishing an atmosphere conducive to working
together efficiency.
3)As a means of correcting or reforming employees who commit any
infraction or violation of company rules and regulations.
•The objective of discipline is to educate the employees
in the fundamental standards of behavior and
performance. The employees should therefore be made
to realize that the rules and regulations are enforced for
their own benefit and not merely to punish them. Its aim
is to correct or reform the employee, not to penalize
them.
 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 favoritism or discrimination in any
disciplinary action.
5) Reprimand should be given as soon as possible after the occurrence of
the act. Right 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 face of others.
8) The discipline that is inflicted must be just, but sufficiently severe to
meet the requirements of the situation.
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 a large group, it is
possible that there is something vitality wrong in the situation. The
remedy is correction of 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.
12) Discipline should be constructive. It should show the offender how to
correct his errors and leave him willing and anxious to improve rather
than feel bitter and resentful
13) Except in cases of extremely serious offenses, 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.
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
Alejandro Lawrence
Astorga Zefra Kate L.
De Asis Shaina Mae
Villegas Jemille

Student