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Decision Making – a Practitioner’s

Perspective
We keep making decisions, keep postponing decisions,
sometimes jump to decisions and sometimes sit on decisions,
sometimes are faced with tough decisions and sometimes we
delegate decisions.

But decisions are part of life, more so, if you are designated as
Manager – your job description may include quality of decision
making as one of the key result areas.

In this paper, I present you some aspects of decision-making.


Some of the materials I present would be very brief – you need
to study further to master that subject.

First let me attempt to define decision-making –

Decision-making is choosing between alternatives while


having incomplete / unreliable information about the
scenario at hand and with uncertain and unpredictable
outcomes of the available alternatives, mainly for the
sake of expediency.

I said incomplete and unreliable information – because if


you have complete and reliable information, you can make
judgments.

Similarly, I said uncertain and unpredictable outcomes –


again if you know the outcome and its certainty, they would
have been called judgments.

I also said expediency – not justice. Decisions are made in


organizations to tide over the present situation / difficulty.
Therefore, sometimes decisions may render injustice. I do not
condone this but merely state the facts of decision making.

One misunderstanding that is prevalent is that, the decisions


are judgments – it is far from true.

Now we can move forward.

We can classify decision in to the following classes for our


better understanding.

CLASSIFICATION OF DECISIONS

1. Strategic & Periodic Decisions:

2. Selection Decisions:

i. Products / Services
ii. Process
iii.Locations
iv.Layout
v. Equipment
vi.Workforce

a. Design Decisions:

i. Product design
ii. Service Design
iii.Job Design
iv.Process Design
v. Control System Design
vi.Capacity Design

3. Recurring Decisions:
a. Target Setting
b. Scheduling
c. Sequencing
d. Inventory Control
e. Cost Control
f. Maintenance

4. Planning Decisions:

a. Planning the system


b. Planning the usage of the system

5. Organizing Decisions:

a. Organization Structure
b. Organizing the jobs
c. Staffing
d. Work and Workstation Design
e. Standards of Performance
f. Compensation Systems

6. Controlling Decisions:

a. Quality
b. Quantity
c. Schedule
d. Inventories
e. Costs
f. Maintenance

It is not necessary that all decision makers make all the above-
mentioned decisions. All of us make some of those decisions. It
is perhaps, very few people – especially entrepreneurs – make
all the above-mentioned decisions.

DECISION MAKING STYLES:


Decision-making styles differ from person to person. It would
help us to know the decision-making styles so that we can
understand our own style. It is also obvious that the same style
of decision making is not appropriate for every scenario. Even
though individuals may have their own style of decision-
making, the knowledge of decision-making styles allows the
flexibility to suppress our style and adopt the appropriate style
that fits the scenario at hand. Now we can look at the styles of
decision-making.

1. Judgment / Hunch Based Decision Making:

This style is utilized by experienced persons. Experience


builds knowledge and possible consequences that result
from a decision. Some of us also are inherently
“convergent thinkers” – that is we look for one best
solution for a situation. Such “convergent thinkers” also
use this type of decision making. This style is best suited in
situations when the experience/knowledge gap is wide
between the decision-maker and the decision-
implementers. Some scenarios that come to mind are:

a. The decision implementers are trainees / novices and the


decision maker is more experienced / knowledgeable
b. Army and battle like or fire-fighting scenario – that is
emergency scenarios
c. Breakdown Maintenance

2. Analytical Decision Making:

This style implies that a thorough analysis is carried out in


which all possible alternatives are considered along with
their costs and possible results are analyzed and the
optimal decision is selected. This is used by
knowledgeable people and somewhat less experienced in
their field. The scenarios that come to mind where this
style is appropriate are:

a. Strategic decisions which have long term impact – especially


selection and design decisions.
b. There is time available for making the decision

3. Precedence-based Decision Making:

Many a time we use established practices and policies for


making decisions. A well-repeated precedence is also
called “Organizational Policy”. This style is used to
bring in uniformity between different decision makers
perhaps at different locations too – in decision-making. The
scenarios that come to mind are:

a. Senior Management sets the policy and middle managers


make decisions
b. Headquarters sets the policy and branches make decisions.

4. Participative Decision Making:

This is also sometimes called as Consultative Decision


making. The decision maker consults the stakeholders to
get their perspective to ensure that all concerns are taken
into consideration before making the decision so that
those concerns can be addressed in the decision. Possible
scenarios are:

a. Target setting
b. Sequencing
c. Scheduling
d. Inventory control
e. Preventive Maintenance
5. Democratic Decision Making:

In this style of decision-making, the decision maker


simply let the decision implementers make the decision.
This is especially useful in public interfacing scenarios.
Decision maker formulates guidelines (or sets boundaries)
and allow the decision implementer make the decision.
Especially in knowledge realms like Research and
Development, educational institutions, high-tech field, aid
distribution work, field commanders in a battle this style of
decision making is appropriate. Some of the possible
decisions are:

6. Consensus Building:

Here the decision maker brings around acceptability for a


decision from persons with different and sometimes
conflicting interests in the matter at hand. The decision
maker consults all the involved persons and finds out their
concerns, and acceptability levels for the proposed
decision, then negotiates with them to arrive at the
consensus and then rolls out the decisions. This is normally
followed in committees where peers come together to
discuss and finalize a decision that concerns all of them in
some way or the other. The trick is in arriving at a win-win
situation for all. Everybody has to give something and take
something. This needs a decision maker that is acceptable
to all and is thoroughly knowledgeable in the field and
decision scenario.

Dominant Factor:

Some times there is a dominant factor that influences the


decision-making. For example – for a mining company there is
no alternative but to open it near the mine. A maritime ship
liner needs to be near the seacoast. Location of market is
another dominant factor. Other cases may include emotional
factors of the entrepreneur – like his native place when it comes
to opening his company or the expertise of the entrepreneur
when it comes to selecting the product and so on. In day-to-day
affairs, customer preference becomes a dominant factor,
around which we have to manage. In some cases like Y2K, the
time becomes the dominant factor. In some cases, the statutory
obligations become the dominant factor. When a dominant
factor is present in a decision scenario – the decision is made
for us.

In other cases we can use some of the tools / techniques


described below.

Available Tools and Techniques for Decision Making:

The following are some of the tools and techniques developed


over a period of time for improving the quality of decision
making and reducing the dependency on the individual capacity
to arrive at a good hunch-based decision.

Critical Examination:

This is an excellent technique for bringing more clarity on the


scenario and evaluating the available alternatives. Of course,
we can use this tool in combination with other tools. It is based
on tow sets of questions called:

1. Primary Questions – What and Why – clarity on the scenario


2. Secondary Questions – What Else and What Should –
alternatives and selection

These questions are asked on five aspects of the scenario,


namely,

1. Purpose (Why)
2. Means (How)
3. Place (Location)
4. Sequence (When)
5. Person (Who)
Questio
What
n What Why What else
Should
What is done? What
What else should
Purpos Is it Why is
could be
e necessary? it done? be done?
done?

Why How
How is it should?
Means this How else?
done?
way?
Where
Why Where should?
Place Where done?
there? else?

When
Sequen Why
When done? When else? should?
ce then?

Who
Why should?
Person Who does it? Who else?
them?

The entry in column captioned “What Should” gives the


decision.
Critical examination can be utilized in any decision-making
scenario. We can use other tools for evaluating alternatives
(Column captioned “What Else”) and to arrive at the possible
decision.

Queuing Theory:

Queuing Theory facilitates analysis of the workload at a


workstation so that we can plan the number of workstations to
optimize capacity utilization and service levels. Checkout
counters, ticket issuing counters, mechanics are some of the
more visible places where application of queuing theory can be
seen. Queuing Theory allows us to visualize the work arrival
rates, and execution rates at a given workstation and provides
us with a set of equations for making decisions – especially with
regard to building capacity.

Linear Programming:

Linear Programming is a mathematical optimization technique


that allows us to define objectives and constraints and it gives a
procedure to optimize the objective. Optimization includes
either maximization (such as revenue or profit) or minimization
(such as cost, tardiness). The solution is derived by a procedure
called “Simplex Programming”. This is not practical to be used
by manual means and computer assistance is more or less
necessary to utilize this technique.

Transportation Problem:

This deals with reaching a number of places (m) starting from a


number of places (n) – while optimizing the travel. Typically this
was originally applied for distribution from a number of
warehouses across the country (or for that matter world, now)
to a number of sales points across the country (or the world).
This is solved using a number of iterations – each iteration,
making an assignment of originations and destinations and
computing the costs thereto. The assignment is iterated until a
satisfactory solution is found. For real-life problems, assistance
of a computer is necessary to be able to use this technique.

Program Evaluation and Review Technique:

PERT originated in research and development field as a tool for


visualizing the activities to be performed for completing the
program as well as for handling the uncertainty involved in
research and development domain using probability theory.
Critical path Method originated in construction industry for
determining the completion time for projects and identifying the
critical activities, which should not be delayed if the project is to
be completed on schedule. Both are network-based techniques
and over a period of time came to be referred and used
together. These techniques help us in visualizing the activities
and their sequence of performance to complete a project, deal
with uncertainties as well as identify the critical activities in the
project. We need to take computer assistance for utilizing this
technique too.

Management Games or Game Theory:

This helps in analyzing competition strategy. It helps us in


finding the outcome of strategies of two parties. It is expressed
popularly in prisoner’s dilemma problem. Two people are caught
at the scene of a theft and interrogated in two separate rooms.
Now if neither confesses, they may go Scot-free or suffer the
minimum sentence. If either one or both of them confess and
implicate the other they certainly suffer the maximum
sentence. Neither knows the strategy of the other. More often
than not, managers find themselves in a similar situation –
perhaps instead of sentence, it could be profit or gain / lose a
deal. Game Theory helps us in working out possible outcomes
for a number of strategies / counter-strategies and selects the
optimal strategy.

Delphi Method:

Delphi method consists of consulting a number of experts on


the subject matter requiring a decision. It is iterated till the
majority of experts converge on to a single set of actions.

Decision Trees:

Decision Trees allow us to graphically explore the possibilities


for the consequences of our actions.

Outcome 1
Action Outcome 2.1
Outcome 2
Outcome 2.2.1

Outcome 2.2

Outc
ome 2.2.2
An example of a Decision tree is shown above. The branches
can be any number and grow in any direction.

Interpolation & Extrapolation:

These are also referred to as Time Series Analysis. Both are


statistical techniques for forecasting future trend using
historical data. Interpolation is for forecasting an intermediate
value and Extrapolation is for forecasting a future value.

Sampling:

The assumption is that a randomly drawn sample truly


represents the homogenous universe from which it is drawn is
the basis for using sampling plans. This is used to test
assumptions, theories, proposed decisions and quality control.
The key terms used in the context of sampling are:

1. Universe or populations – The whole gamut of data - all are


relevant candidates covered.
This is very large – so large that it is not practical to cover every
member of the population
2. Sample – a small section of the population or universe
3. Candidate – each data item in the population or universe
considered for inclusion in the sample

The key aspects for sampling to be successful are (i) the


population or universe is homogenous and (ii) the sample is
randomly drawn. On many occasions, we find that the
population is not truly and fully homogenous. Therefore, we use
many techniques for drawing samples. Some of these are:
➢ 1. Random Sampling – used in truly homogenous
population. We draw sample candidates based on a lottery
or using random numbers.
➢ 2. Judgment Sampling – we select the sample based on
our judgment about the candidate’s ability to truly
represent the population
➢ 3. Convenient Sampling – we select the candidates who
are available to us without much exertion
➢ 4. Stratified Sampling – this is more authentic manner of
sampling and is used in populations that are not truly and
fully homogenous. We divide the population into various
strata and draw random sample from each strata
➢ 5. Cluster Sampling – we divide the population into
representative clusters and draw sample candidates from
each of the clusters using random sampling technique

We use Single Sampling Plan or double Sampling Plan in the


context of Sampling.

Single Sampling Plan:

Suggests that we draw one sample from the population and use
it to make assumptions about the population.

In Double Sampling Plans, we have two methods.

We draw one sample, test it and then draw another sample if


the results of first sample are somehow not found satisfactory,
from the same population and test it. Based on the outcomes of
the two samples, decisions are made. This is popular in lot
testing. When there are large numbers of products to be tested,
a sample is drawn and tested. A second sample is drawn if the
first sample fails the criteria for lot acceptance. If the second
sample confirms the findings of the first sample, then the lot is
rejected. But if the first sample failed the lot and the second
sample passed the lot, the organizational process is followed. It
can be accept the lot or carry out 100% testing or take another
sample and take the majority outcome.

We draw two samples from the same population and test them
with two independent agencies and compare the results. One
popular example that comes to mind is testing for cancer thru
biopsy –two samples are sent to two laboratories and compare
the findings.

STATISTICAL ANALYSIS:

I would recommend a basic course in statistics for every


manager who would like to make good decisions. I would go so
far as to say that every manager uses statistics, albeit, to the
extent of using averages. But statistics is a very powerful tool
for effective decision-making. The following few statistical
techniques that I think are most valuable for decision-makers.
The below description is not comprehensive and I advocate that
you educate yourself in these techniques by studying more
elaborate material on these topics.

 Measures of Central Tendency, Dispersion, &


Skewness:

These values help us in drawing inferences about the


population. We have three measures of central tendency of
data, namely Mean, Mode and Median. Arithmetic Mean
(normally called the average value) is used to summarize data
for us. We use terms such as mean time between failures,
average defect density and average duration of a project etc for
describing population attributes. Mean is a good measure when
we have large number of data but it may not be appropriate for
small number of data. For small number of data, Statistical
Mode (Model Value or Most Occurring Value) is more suitable.
The other measure of central tendency is Median or the middle
value. The measures of dispersion describe the variability of
data. Most commonly used measures of dispersion are Standard
Deviation ( - Sigma) and Variance. Other measures of
dispersion are quartile deviation, percentile deviation etc.
Skewness is a measure that tells whether the data is normally
distributed or is skewed in someway. We have to check this as
we cannot take normal decisions from a data that is skewed one
way or the other.

 Correlation – or Covariance:

Is the method to determine if one set of out comes is related to


one set of inputs. A common question – such as, would
increased inspection ensure higher quality? – can be examined
by this measure. We compute Coefficient of Co-variation based
on which we draw an inference whether one is dependent on
the other

 Probability Distributions:

We have three popular probability distributions, namely Normal,


Binomial and Poisson Probability Distributions. Normal
Probability Distribution assists us in inference about normally
occurring values. Binomial Probability Distribution assists us
inference about values, which are binary in nature – that is only
two possible values – like tossing of a coin. Poisson Probability
Distribution assists us in inference about rare events – like fires,
floods, and earthquakes etc. There are other probability
distributions such as Beta Distribution, Gamma Distribution,
and T Distribution etc.

 Tests of Goodness of Fit:

We use this to validate the results obtained from our testing.


We compute measure of goodness of fit X2 (pronounced Chi
Square - Ch as in K) from the expected values and the actual
values.

 Hypothesis Testing:

This assists us in designing of tests and use of Sampling of data


and assists us in determining if our hypothesis is valid or not.

Consultants:

More often than not, managers have to manage a knowledge


area, in which they do not have much knowledge about. Also
true is the fact, that they do not have experience in the
decision scenario to be able to define and assess the
alternatives, assess the possible outcomes and the knowledge,
many times, to properly define the problem too. That is where
consultants come in handy. They bring in their knowledge,
assist us in all areas from problem definition, development of
decision-scenario, enumerate the alternatives and possible
outcomes and enable us to select the optimal decision.

Decision Postmortem:

We should learn from the outcomes of all the decisions we


made. The decision outcomes could be

1. As we expected – wonderful – we need to examine whether


we made a good decision or control of decision implementation
ensured the expected result.

2. Better than expected – we need to analyze what caused the


improvement so that we can use that aspect in all our future
decisions.
3. Worse than expected – we need to analyze what caused the
decision to fail and how it could have been prevented. In all our
future decisions, we need to avoid these pitfalls.

Should we make a formal postmortem with all concerned and


document it?
Documenting is always good as it is available for future
reference – even if it is only for us. Involving others is optional.
We may involve or may not, we may just get the facts / data,
we must however, analyze the decision.

Conclusion:

We make decisions and therefore, we need to be aware of


decision making theory and master as many tools and
techniques as possible.

We have to note that decision is choosing between available


alternatives and is not the same as justice. Decision is for
expediency.

We must carry out a postmortem of our decisions to learn


lessons so that our decision quality can be improved.
Every business man who has started his business in this world
had to pass through the process of decision making process
while starting his business.

Decision making is a routine process for managers


– Correct decisions lead to success
– Wrong decisions lead to failure

Decision making is totally based on the problems or need.


When there will be any need or problem of something then one
will start making decision to solve that problem or to meet that
need.

Now I will emphasize on the decision making process that what


are the main elements or those step which should be followed
while making a decision.

STEPS:
 Identifying the problem
 Developing the decision criteria
 Creating the alternatives
 Allotment of weights
 Analyzing the alternatives
 Selecting one alternative
 Implementation of alternative
 Evaluation

These eight steps are followed while making a rational decision


by one manager in any organization.

STEP 1:

Identification of problem:

In this step as the name suggests that a manager or owner


identify the problem or feel that need that here it is need of
certain thing like changing something or buying something etc.
Problem may be identified by surveying the market that here is
not such kind of business is available which one is going to start
or also there is need of some thing that may be any basic needs
or etc. in this step owner collects the fact and figures, data and
his observations by surveying the market according to the taste
of buyer or need of buyer.

STEP 2:

Developing the decision criteria:


In this step the owner will develop that needs or those
components which he has to adopt in a way that what type of
business he is going to start and what area should be there
type of building is needed how much cost would be needed
what type of skills employees should used and what are the
geological effects in that area for example age sex and wants or
taste. In other worlds owner will see the market and calculate
his estimate in shape of size, area, building and cost etc.

STEP 3:

Weighing the alternative:

In this step owner will give the ranking to his priorities or needs
of customers.
To all those things which he has observed through surveying the
market. He gives grades to the properties of alternatives
according to their advantages or disadvantages.

STEP 4:

Creating alternatives:

In the forth step businessman will see the alternatives which


are available in the market in case that what type of business
he should start weather it should be a retail business or
wholesale business or my be a production.
E.g. if there is need of salty biscuits in the market then he will
decide that weather he should himself produce it or just supply
in the market as a wholesaler or sale it to the final consumer as
a retailer.

STEP 5:
Analyzing the alternatives:

In this step owner will analyze the alternatives according to the


advantages or disadvantages which are in possession of a
particular alternative.
In the end he will calculate the risks or benefits according to the
grads or weights.
He will sum up the grades and get the total the alterative which
has more advantages or get more aggregate total of grad will
be the right choice in the end.

STEP 6:

Selecting the alternative:

Subsequently owner will select that particular alternative which


got good weight more than any one. That would be the rational
decision because this decision has made in the light of whole
process and in the light of complete information there were all
alternatives and all have been scrutinized. And after evaluating
the alternatives such choice have been made.

STEP 7:

Implementation:

In this step owner will implement the selected alternative that


means he will start that plan or that business which he has to
start. That choice starts function the work.
If there is a business to start then that will start producing
things.
STEP 8:

Evaluation:

In this step owner will evaluate the decision which he has made.
Means he will start benchmarking or comparing the alternative with
other weather their choice is working properly that they have made
a rational decision.

ROYAL FURNISHERS
G.T Road, Gujrat. (Pakistan) Tel: +92(0)53-3517303
Fax: +92(0)53-3516882, Mob: +92(0)333-8402993

INTRODUCTION:

Royal furnishers are a well known furniture industry, situated on


the highway which leads to Rawalpindi in the boundaries of
Gujrat in front on N.M furnishers.
The industry was founded by Mirza Muhammad Akram (Chief
Executive) of Royal furnishers in April of 2008. They have made
a rational decision when they commenced that business though
they have faced a lot of problems and also along with some
advantages which I observed. They make finished goods and
also sell it to the final consumers. They have got progressed
within a limited passage of time which is a remarkable
performance and only because of completing homework in the
form of decision making especially rational decision making.

I have visited that very firm and I have completed my


assignment because of the cooperation given by them.

I have observed many things such as their decision making,


rational decision and perfect evaluation.

Firstly they only have an outlet to sale out the products, the
products which they did not make themselves. They buy from
some where else and then used to sell them to consumers. That
shop was situated on railway road.

Then they made a decision to start an industry to produce their


own products, so they had to take a step and had to make a
rational decision because there was a great element of risk.

In order to minimize the risk element he observed the whole


market, he got all fact and fingers, and he analyzed his
business with other to get differences.

So my questions were that, what were those problems which


incited them to take that step. How did they identify the
problem or feel the need to start that business though there
was a great risk.

Let’s see how they followed the decision making process while
starting that business.
How they developed the decision criteria and what were
alternatives available.

STEP 1:

According to me analysis, on my questioning CEO said that to


enhance our profit and to expand our business we have taken
that step. And there was a competition between other furniture
industries and Royal furniture. They felt the need and especially
they faced some problems to compete with other they started
their new business. So I would elaborate it in the light of
decision making process in the first step.

IDENTIFYING THE PROBLEM:

In the first step according to the CEO they identified problem


that they felt the need to start the new business because of
great competition. Royal furnishers were facing problems while
facing the tough completion from the competitors like N.M
furnishers, National furnishers or Descent furnishers etc. as
they were having great profit and grabbing the whole market so
in order to remain in the market Royal furnishers had to take
such step.
So the first step of decision making process has built because of
competition.

STEP 2:

On the second question I asked to CEO that what things you


watched or what were your requirements through which you
started such type of business or such department of production.
His answer, that his first need was, that he wants a place in the
competition place means in the market. He wanted to build a
factory in the market area. Secondly a place where his business
enjoys good quality transportation so that goods could transfer
easily and to get quick supply as his previous business was on
railway road where there normally you see great traffic jam.
Thirdly he said that minimum cost as every owner would love to
have, he also wanted to have lower cost to start the project.
The cost might be in any field such as he wanted to heir the
efficient workers with low cost. He wanted to build such a
project which can not only produce the finished goods but also
include order supplying, interior decorations, home furniture
etc. After that he said that there should be beautiful outlook of
the building or the area should be clean and beautiful. He
wanted a business that could produce more job opportunities
for other people. As firstly they used to get semi finished goods
from other supplier and then convert them into finished goods,
so there were complains cause of ordinary suppliers, he felt that
problem and he wanted to open a business which can produce
quality goods to cover al those complaints and in the end good
profitable business.
So according to me in the decision criteria CEO’s preference
were as below.

DEVELOPING THE DECISION CRITERIA:

In this step he developed his decision criteria on the bases of


his preference which were quality control mainly, to cover the
complaints, eliminate the supplier, reduce the cost, to compete
the competitors, to have name in this industry, wanted a
beautiful building, can produce job opportunities, to enjoy best
transportation, generate huge profit, business which could
handle or produce any kind of furniture etc.
These all were his requirements which his business should have
fulfilled.

STEP 3:
In the question that weather had he given weights to all those
requirements or he made some kind of grading to get the
maximum and to make a rational decision.
His answer was that not such type of grading he made. He just
collectively made a requirement and found it because there was
an advantage to him that he owned a brilliant plot right in the
spot between the great competitors. So he had not to work as
much.

ALLOCATION OF WEIGHT:

In this step he did not gave any weights to the properties of


business because of having productive advantage.

STEP 4:

In order to compare, he should have create some alternatives.


In this regard he said that there were many alternatives such as
production of sheets such as win board, chip board, hard board
and Formica etc.
He also availed that step which shows that he has mad a pure
rational decision because in order to get rational decision you
have to create alternatives.

CREATING ALTERNATIVES:

In this step he created the alternatives as many as he could


have created. He had made a rational decision just because of
searching the alternatives in the market that what type of other
business are running in the market related to this furniture field.
So he found that some owners were producing sheets such as
win board, chip board, hard board and Formica which is used to
make T.V trolleys and that is also related to furniture industry.
STEP 5:

Question about the alternatives, that he could have started


another business in this field such as producing chip board
sheets, win board sheets, Formica sheets, hard board sheets
etc. Question arise that why he had selected that business
which produce home furniture etc? So there were alternatives
were available in the market. Why he had not selected other
alternative because by these businesses he also could have
increased his profitability. He said that he analyzed all the
businesses through every angle. He wanted to be compared in
the production (because other big industries were producing
home furniture) that is why he selected that business.

According to me he used that step to analyze his preferred


business with other.

ANALYZING THE ALTERNATIVES:

In this step as I mentioned that he went in the market and got


data about all other alternatives. He collected all the facts and
figures about the risks, cost, and lack of experience. He realized
that he is clearly lack of experience in that type of business and
there may be great risk because of lack of knowledge and also
there was great amount of money needed. All these things and
his requirements gave him an analytical image about this
situation. He wanted to open the business on his own place and
a business which could compete the other’s business. His total
background was about producing the home furniture then he
rejected that type of alternatives. There were vast fields in
home furniture like interior, bedroom, trolleys etc. Other
alternatives had no such type of related businesses. Other
businesses were needed to be given too much transportation
because sheets had to be supplied to other producers, so he
had to become a supplier which he did not want in that field. He
wanted to supply the finished goods to consumers so that all
the profits could be earned. He had his own place on the G.T
road and if he would start producing sheets that he was needed
a place out of the market and out of housing areas because of
pollution, all these factories generate too much pollution in
form of dirty water and smell. But furniture producing industries
don’t have such kind of drawbacks.
After analyzing all these things and comparing all the
alternatives he thought furniture industry would be the right
choice.

STEP 6:

After analyzing he selected that business because of more plus


points.

SELECTING THE ALTERNATIVES:

He selected that business because he analyzes all the


alternatives and he realized that furniture industry have vast
scope and more advantages and also more profitability because
of more opportunities. So he selected and decided to
commence Royal Furnishers.
STEP 7:

In this step he started investing on the project, as he had a


place so he only had to invest on constructing building. He
implemented his decision.

IMPLEMENTAION:

He commenced his business and started producing things and


selling the products in their outlet.
STEP 8:

In this step I asked him about his decision weather he had


made a perfect decision or not if he benchmarks his business
then where he sees his business and has decision making
process helped him?

EVALUATION:

He evaluated his business and of course only 1 year has passed


when they started their business. According to him his business
is running in healthy profit and he is having many opportunities
such as supplying semi finished goods to the outlets and they
are availing all those opportunities. He said that decision
making is a key factor in the success or failure in any
organization if you make a rational decision by analyzing and
having complete knowledge about existing alternatives and
opportunities. He said that I have almost succeeded to give
tough competition to others. He said although there was a great
element of risk when I started business but I have covered by
making small plans which created by decision making. Although
there are some weaknesses are being faced by us but that just
because of young organization, with the passage of time will be
converted in to opportunities. In the end he said an organization
can achieve all targets by making rational decision making
process and a firm should follow this process in every plan or
solving a problem.

SUGGESTIONS AND CONCLUSION


Every firm should involve decision making process in any kind
of problem or for making strategies or plans.

Decision making is a key factor it plays an anchor sheet role in


the success or failure of an organization.

By adopting this method all structured and non-structured


problems can be solved without feeling ambiguity.

Decision making is as important in short term planning as it is


important in long term planning.

Rational decision can only be made by following the decision


making process and analyzing all the alternatives.

By making rational decision all impossible goals and targets of


an organization can be achieved.

Rational decision making converts the threats and weaknesses


of any organization into their strengths and opportunities.

Through rational decision making opportunities can be availed


otherwise will be lost.

Decision making is the key of successes or failure. It has more


advantages than disadvantages.