ES 70- Engineering

Management
Module 2: Decision Making

Instructor: Engr. Grace C. Baba

rebmarkjohn@gmail.com
0926-8399-858

Note: students under Engr. Grace C. Baba please contact me in my email or on my phone
number.
Decision
What is Decision? it is a judgement. It is a choice of
between alternatives. It is rarely a choice between right
or wrong.
Who make decisions? Only executive make decisions.
Decision Making
Managers of all kinds and types, including the engineer
manager, are primarily tasked to provide leadership in
the quest for attainment of the organizations objectives.
Fundamental process of management.
To become more effective, the manager should learn the
intricacies of decision-making.
Decision making skills will very crucial to his success as
a professional .
Good decision will provide the right environment for
continuous growth and success of any organized effort.
Decision-Making as a Management
Responsibility
Decision – Making- is a responsibility of the engineer
manager.
Decisions must be made at various levels in the
workplace. They are also made at the various stages in
the management process.
It is understandable for managers to make wrong
decisions at times and the wise managers will correct
them as soon they are identified.
Decision – Making is the heart of all management
functions.
Decision Making Process
-Rational decision making involves the following steps:
1. Diagnose problem- to make an intelligent decision, first move
is to identify the problem
* Problem exist when there is a difference between actual
situation and desired situation.
2. Analyze environment – the environment where the organization
is situated plays a very significant role in the success or failure
of such an organization.
- identification of constraints which may be spelled out as either
internal or external.
 Identification of constraints, which may be spelled out either
internal or external limitations
Components of the environment:
1) Internal- refers to organizational activities within a firm
2) External- refers to variables that are outside the
organization and not typically within the short-run control
of top management.

3. Articulate problem or opportunity

4. Develop variable alternatives- problems may be solved by
any of the solutions offered.
- Prepare a list of alternative solutions,
- Determine the viability of each solutions;
- Revise the list by striking out those which are not viable.
5. Evaluate alternatives- after determining the viability of the
alternatives and a revised list has been made, an
evaluation of the remaining alternatives is necessary. This
is important because the next step is involves making a
choice. Proper evaluation makes choosing the right
solution less difficult.
How alternatives be evaluate?
1) Will depend on the nature of the problem
2) Objectives of the firm
3) Nature of alternatives presented.
6. Make a choice-process of selecting among alternatives
representing potential solutions to a problem.
7. Implement decision- carrying out the decision so that
the decision so that the objectives sought will be
achieved. To make, implementation, a plan must be
devised.
8. Evaluate and adapt decision results –analyzing,
comparing alternatives and implementing the
chosen solution
Approaches in Solving Problems
In decision –making, the manager is faced with
problems which may either be simple or complex.
1. Qualitative evaluation- refers to evaluation of
alternatives using intuition and subjective judgement.
2. Quantitative evaluation – refers to the evaluation of
alternatives using any technique classified as rational
and analytical.
Summary
Decision – making is a very important function of the
engineer manager. His organization will rise or fall
depending on the outcomes of his decisions.
The process of identifying and choosing alternative
courses of action in a manner appropriate to the
demands of the situation is called decision – making.
The decision – making process consists of various steps,
namely: diagnose problem, analyze environment,
articulate problem or opportunity, develop viable
alternatives, evaluate alternatives , make a choice,
implement decision, and evaluate and adapt decision
results.
Decision Process
1) Identify the problem
2) Specify objectives and 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.
Assignment:
Why is proper diagnose of the problem is important?
 How may on develop viable alternatives in problem
solving?
Why is disagreement is important before finalizing
decision making?