Decision Making and its characteristics

Category: Bank
Posted on: Monday, September 18, 2017


Decision making is the process of choosing or selecting any one option out of several options to achieve some objectives.

 Glueck – “Decision making is the process of thought and deliberation that leads to a decision.”

 Allen – “Decision making is the work a manager performs to arrive at a conclusion or judgment”. Thus decision is a process of selecting a course of action from among the available alternatives in order to achieve a desired goal in a given situation.

 Characteristics/Nature of Decision Making :

 (i) Decision making is a sequential process involves the searching, evaluative and choosing a course of action.

(ii) It is an intellectual and logical process.

(iii) This process will take place in the human mind.

(iv) It is a human and social process.

(v) It is largely an intuitive process but can be formally structured.

(vi) There is an existence of alternatives.

(vii) Ascertainment of choice.

(viii) It aims at attaining some objectives.

(ix) Decision is directed to solve some problem.

(x) Decision making involves commitment.

(xi) It is influenced by environmental conditions.

(xii) Decision making is the essence of management.