DECISION-MAKING:

FUNCTION OF
MANAGEMENT
BELMONTE, REYMAR A.
BREGANZA, EDMAR O.
BUTIL, CHINGCHING A.

WHAT IS DECISION-MAKING?
Decision

making may be defined as the process of

identifying and choosing alternatives courses of action in
a manner appropriate to the demands of the situation.

The

definition indicates that the engineer manager must

adapt a certain procedure designed to determine the best
option available to solve certain problems.

Decisions

are made at various management levels and at

various management functions which is planning,
organizing, directing and controlling. Decision-making
according to Nickels and others is the heart of all the
management functions.

THE DECISION-MAKING PROCESS

1. Diagnose the problem
If a manager wants to make an intelligent decision, his first move
must be to identify the problem. If the manager fails in this
aspect, it is almost impossible to succeed in the subsequent
steps. An expert once said identification of the problem is
tantamount to having the problem half-solved. But what is a
problem? A problem exists when there is a difference between an
actual situation and a desired situation.
2. Analyze the Environment
The environment where the organization is situated plays a very
significant role in the success or failure of the organization itself.
It is, therefore, very important that an analysis of the
environment be undertaken.

The objectives of environmental analysis are the identifications of

constraints, which may be spelled out as either internal or external
limitations. Examples of internal limitations are as follows:
Limited funds available for the purchase of equipment
Limited training on the part of employees.
Ill-designed facilities.
Examples of external limitations are as follows:
Patents are controlled by other organizations
A very limited market for the companys products and services
exists.
Strict enforcement of local zoning regulations.

3. Making a Choice
After the alternatives have been evaluated, the decisionmaker must now be ready to make a choice. This is the
point where he must be convinced that all the previous
steps were correctly undertaken
Choice-making refers to the process of selecting among
alternatives representing potential solutions to a problem.
To make the selection process easier, the alternatives can
be ranked from best tot worst on the basis of some factors
like benefit, cost, or risk.
4. Implement Decision
After a decision has been made, implementation follows.
This is necessary, or decision-making will be an exercise
in futility.
Implementation refers to carrying out the decision so that
the objectives sought will be achieved. To make
implementations effective, a plan must be devised.

5. Evaluate and Adapt Decision Results

In implementing the decision, the results expected may or may
not happen. It is, therefore, important for the manager to use
control and feedback mechanisms to ensure results and provide
information for the future decisions.
Feedback refers to the process which requires checking at each
stage of the process to assure the alternatives generated, the
criteria used in evaluation, and the solution selected for
implementation are in keeping with the goals and objectives
originally specified.

FORECASTING
There

are instances when engineer managers make

decisions that will have implications in the future.

manufacturing firm, for example, must put up a

capacity which is sufficient to produce the demand
requirements of customers within the next 12 months. As
such, man power and facilities must be procured before
the start of operations.

To

make decisions on capacity more effective, the

engineer manager must be provided with the data on
demand requirements for the next 12 months. This type of
information may be derived through forecasting.

FUNCTION OF MANAGER
1. Planning
Manager should have objectives in mind
Planning help managers to do things right
Well-planning needs the following:
a)Defining objectives
b)Deciding what/ when/ how/ who
What is to be done?
When it is to be done?
How it is to be done?
Who is it to do it?

2. Organizing
Gathering and allocating all resources
Coordinating the work of the organization
Deliberate creation, a configurations that defines the
following:
How authority is structured?
How communication flows?
How tasks are accomplished?
3. Directing
Redirecting human behavior to achieve objectives
Motivating others to produce
Influencing subordinates

4. Controlling
Keeping things on track
Steering performance towards desired goal
Coordinating monitoring and adjusting
performance

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. It is, therefore, necessary for the
engineer manager to develop some skills in decision-making.

The process of identifying and choosing alternative courses of

action in a manager appropriate to the demands of the situation

is called decision-making. It is done at various management
levels and functions

To be a good engineer manager, one must have good decision-

making skills especially in complicated situations to ensure the

progress of their organization or company. Having good
decision-making skills means that an engineer manager was
able to work and perform well under pressure.