A daily activity in every individual's life - Decision making. This ppt covers the Definition, Elements,Features, Objectives, Bases, Levels of decision making, Process of decision making, Types of decision making, Models of decision making , Problems of decision making, The nurse's role in decision making.

1. Unit III – Planning and control
Decision Making & Decentralization
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2. Decision Making
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3. Introduction
 Decision making is a common everyday phenomenon.
 Everybody needs to make decision either on personal or
public matters.
 No one can be a successful executive if he/she is
incapable of making decisions.
 Decision making though highly important is equally
difficult.
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4. Definitions of decision making
 Decision making is defined as an act of determining in one’s own
mind upon an opinion or course of action.
(Webster's dictionary)
 It is a conscious human process involving both individual and social
phenomenon based upon factual and value premises which
concludes with a choice of one behavioral activity from among one or
more alternatives with the intention of moving forward some desired
state of affairs.
Sheel et al
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5. Basic elements of decision making
 According to B. Governay there are 4 elements that
can be used to make a decision.
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There must be a choice
Choice must be conscious
Choice must be oriented by various
purposes
Choice must lead to an action

6. Features of decision making
 Selection of the most desirable alternative.
 Rational selection
 It is goal directed upon the situation and conditions of the event
 Decision may be positive or negative
 It reflects action commitment
 Time is an important factor in decision making
 Decision must take account of personnel and material resources
 Group participation
 Decision taken are to be communicated.
 Efficiency in implementation
 Evaluation is a continuous process in decision making
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7. Objectives of decision making
 To reach optimum and most desirable results
 To perform other fundamental functions of
management
 To resolve conflicts
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8. Bases of decision making
 Intuition – the offspring of the inner feeling of the decision
maker.
 Facts – the factual data has the relevancy of the situation and
recognized as the most effective and efficient method of taking
decisions.
 Experience – past experience plays an important basis for
considering various alternative and then selecting the best
one.
 Authority – the managers are to take organizational policies
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9. Decision levels
 The decisions are usually taken at 3 levels: strategic, tactical and
operational.
 Strategic level- these types of decisions are at the highest level. The
decisions are concerned with general direction, long term goals,
philosophies and values. The decisions are least structured and most
imaginative and with most uncertain outcome .
 Tactical level – these decisions support strategic decisions. They tend to be
medium range with moderate consequences.
 Operational level – these are everyday decisions. They are made with little
thought. They are made with little thought and are structured. Their impact
is immediate and short term.
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10. Decision making process
Specific
objectives
Identification of
problem
Search for
alternative
s
Evaluation
of
alternative
s
Choices
of
alternative
s
Action
Results
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1. Specific objectives- the decisions are made to achieve some
results. So there is always an aim to do some action. Hence the
need for decision making arises in order to achieve certain specific
objectives.
2. Identification of problem – the particular step forms the beginning
of decision making process. It is just like making a nursing
diagnosis by a nurse practitioner before providing care.
3. Generate alternatives- to identify various alternatives, a decision
maker uses various sources. Eg:- his own past experience,
practices followed by others and using creative techniques.

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4. Evaluation of alternatives – test each alternative for its suitability,
feasibility and acceptability. List benefits, costs and risks associated
with each alternative.
5. Choice or selection of an alternative – after evaluating each possible
alternative, a comparison is made among the likely outcomes of
various alternatives and the best one is chosen. Usually 4 criteria –
measurement of risks and gains, economy, timings, availability of
resources are considered for taking up decision for the best
alternative. Various approaches like experience, experimentation,
research & analysis are also considered while making decisions.

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6. Action – though the decision making process ends with
the choice of alternative, the manager needs to make
sure that the objectives are met or else the alternative
one can be put into action.
7. Results- the outcome of alternative provides indication
whether decision making and the implementation is
proper.

14. Types of decisions
Programmed decisions
• Routine in nature
• Taken by low level managers which are delegated to them
by the top level managers
• Decisions are short term based
Non programmed decisions
• Taken by top level managers under specific
circumstances arising at times in the organization
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Organizational decisions
• The decisions taken by the managers in his official
capacity for the organization
Personal decisions
• Decisions taken in the personal capacity.

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Routine decisions
• Also called as tactile decisions
• The decisions are taken in day to day management under
the jurisdiction of rules, regulations, policies, procedures
etc.
Strategic decisions
• Also known as basic decisions
• These decisions have long term effect on organizational
functioning, generally related to policy matters.

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Policy decisions
• The decisions that formulate and determine
the policy.
Operative decisions
• These decisions are taken for executing the
operative or day to day decisions by lower
level managers.

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Individual decisions
• When the decisions are taken by a individual
manager at any level it is termed as individual
decisions.
Group decisions
• The decisions where an individual manager cannot
take the decisions without the consensus of a group
of members. Eg. Board of Directors in a meeting of
an organization.

19. Techniques of decision making
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 Operational research - this sis a scientific method that
analyzes the problems or it is the application of specific
methods, tools, techniques to operations of system with
optimum solution to the problem.
 Decision tree – these are a model for solving a problem
where the decisions involve a series of steps, the
subsequent step depending on the outcome of the
previous step.
Contd…

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 Linear programming - it is a mathematical technique
used for purpose of allocation of limited resources in
an optimum manner.
 Gaming or game theory- it involves simulation of a
situation in order to gain the reality of a situation.

21. Who makes the decision ???
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 Co-operative effort by many
individuals .

22. Models of decision making
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Optimizing model
Alternative model

23. Optimizing model
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 It describes how an individual should behave inorder to maximize some
outcome.
 The steps below can be followed to select the best possible alternative:-
 Ascertain the need for decision
 Identify the decision criteria and allocate weighs to the criteria
 Develop the alternatives
 Evaluate the alternatives
 Select the best alternative
 Eg: - taking admission into a nursing college

24. Alternative models
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The satisfying model
The implicit favorite model
Intuitive model
Rational decision making
model
Political behavioral approach

25. Satisfying model
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 This model is based on the choice of the decision
maker where she chooses the first solution that is
good enough ie, satisfactory and sufficient otherwise
will go for search of other alternatives.

26. The implicit favorite model
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 The decision maker implicitly selects a preferred
alternative early in the decision making process and
biases the evaluation of all other choices.

27. Intuitive model
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 This model describes the emotional approach where
the decision maker takes decision depending upon
the intuition.

28. Rational decision making model
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 This model involves the selection of alternative which
will maximize the decision makers’ values.
 the selection is made following a comprehensive
analysis of alternatives and their consequences.

29. Political behavior approach
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 All people and the organization is considered in
making decisions.
 Decisions are made through mutual negotiations and
consultations among all who affect or are affected by
the decisions.

30. Problems in decision making
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 Which problem to be solved ??
 What is the right decision ??
 Bias

31. Role of nurse administrators in decision
making
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 Top level nurse administrators
 Middle level nurse administrators
 Operational level nurse administrators

32. Decentralization
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33. Definition
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 It refers to delegation of decision making to subordinate units.
 In management decision making refers to the dispersion of
authority.
 It is necessary for the top administration to focus on issues of
management and rest of the work or activities should be
handed over to the middle managers or operational level
managers.

34. Implications of decentralization
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 There is less burden on the top administrator.
 The subordinates get a chance to decide and act
independently.
 Diversification of activities can take effectively.
 Operations can be coordinated at divisional level.
 Greater motivation and morale of the employees due to more
independency to act and to take decision.
 Co-ordination to some extent is difficult to maintain.

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