Marketing Environment
GROUP 2
TOPIC: DECISION MAKING IN BUSINESS
GROUP MEMBERS
• KEN-ALBERT ORWA - 069265
• BRENDA MWENDWA MURURU-070997
• FAITH KANJA-068730
• SYLVIA NDUATI-071688
• SAMUEL GITHAIGA-069347
• ROBERT GICHUHI-070903
• JAMES MAINA-070880
DECISION MAKING PROCESS IN BUSINESS
Introduction
Decision Making refers to a conscious, intellectual activity involving judgment, evaluation and selection from among several alternatives.
From this definition, we can derive the nature of decisions as being: • A result of a conscious effort on the part of the decision makers to arrive at a conclusion i.e. they are not mere reflexes, reactions, or habits. • That which entails the selection of an alternative from a group of alternatives.
In order to understand the characteristics of managerial decisions, we first need to understand the types of decisions within a business.
In C.S. Deverell’s Management Planning and control, one way of categorizing decisions is as follows: a) Risk-Taking decisions- deal with policy and capital expenditure therefore they very much concern the top management. b) Problem-solving decisions- deal with the implementation of policies and falls to the lot of other levels of management.
Professor William Dill of the University of Chicago classified decisions as: a) Agenda Decisions- concerned with the identification of problems, selection of those to be tackled and the assignment of an order of priority in doing so. b) Search Decisions- apply to the selection of procedures for finding solutions to problems, and govern the approved limits of funds, time and staff committed to such searches. c) Allocation Decisions- concerned with the commitment of resources to lines of actions or problem solving. d) Evaluation Decisions- setting up methods and procedures of assessment against predetermined goals and standards and
TOPIC: DECISION MAKING IN BUSINESS
GROUP MEMBERS
• KEN-ALBERT ORWA - 069265
• BRENDA MWENDWA MURURU-070997
• FAITH KANJA-068730
• SYLVIA NDUATI-071688
• SAMUEL GITHAIGA-069347
• ROBERT GICHUHI-070903
• JAMES MAINA-070880
DECISION MAKING PROCESS IN BUSINESS
Introduction
Decision Making refers to a conscious, intellectual activity involving judgment, evaluation and selection from among several alternatives.
From this definition, we can derive the nature of decisions as being: • A result of a conscious effort on the part of the decision makers to arrive at a conclusion i.e. they are not mere reflexes, reactions, or habits. • That which entails the selection of an alternative from a group of alternatives.
In order to understand the characteristics of managerial decisions, we first need to understand the types of decisions within a business.
In C.S. Deverell’s Management Planning and control, one way of categorizing decisions is as follows: a) Risk-Taking decisions- deal with policy and capital expenditure therefore they very much concern the top management. b) Problem-solving decisions- deal with the implementation of policies and falls to the lot of other levels of management.
Professor William Dill of the University of Chicago classified decisions as: a) Agenda Decisions- concerned with the identification of problems, selection of those to be tackled and the assignment of an order of priority in doing so. b) Search Decisions- apply to the selection of procedures for finding solutions to problems, and govern the approved limits of funds, time and staff committed to such searches. c) Allocation Decisions- concerned with the commitment of resources to lines of actions or problem solving. d) Evaluation Decisions- setting up methods and procedures of assessment against predetermined goals and standards and
References: 1. Light Bryon, 2012 www.lightbryon.com/groups/groups.html 2. McGraw Hill, 2000 Object Oriented Analysis and Design 3. London Deanery, 2012 www.faculty.londondeanery.ac.uk/e-learning/small-group-teaching/group-dynamics-group-processes 4. http://www.csulb.edu/~skukalis/Ch%2009.ppt 5. http://www.bhsu.edu/Portals/78/BADM%20360%20Ch.%203.ppt 6. http://www.iluv2teach.com/mgt404/week1.ppt 7. Management in Industry. Claude S. George, Jr, PhD. Prentice Hall 2nd Edition 8. Management Planning and Control. C. S. Deverell. Gee and Co. Publishers Ltd 9. Management Tasks, Responsibilities, Practices. Peter F. Drucher 10. The Managerial decision-making process Fifth edition E. Frank Harrison