Decision making is very vital to our lives and is an important aspect of business. The finance and entrepreneurship students of TIPSGLOBAL had a guest lecture delivered by Mr.S.P.Arunachallam stressing on its importance. Such interesting lectures are a part of the education imparted at TIPSGLOBAL.
Mr.Arunachallam emphasized that, “There may not always be a correct course of action among the available choices. Procrastination should be avoided. A combination of both intuition and reasoning would work a lot better”.
Some of the popular decision making techniques include Autocratic, Consultative, and Collaborative, Developing consensus, majority, voting and multi-voting. Many stages are involved in the process of Individual Decision making. Defining the problem, setting up a time scale, gathering information, listing out all the possible solutions, weighing the risks involved, deciding on values, & weighing the pros and cons of each course of action are the various stages involved in Effective Decision Making.
Light was thrown on Decision Matrix. It involves comparing all the parameters and summing them up. That is to be multiplied by the rank which we give to different things with regard to various parameters. Summing all of them up would help us arrive at a particular decision.
A decision tree is something that is useful in making a particular decision. It takes into account the probability of every event that can occur. It was a good review of what we learnt in Probability and Operations Research. There were a lot of interesting case studies discussed in the lecture.
To sum up the interesting lecture, effective decision making is defined here as the process through which alternatives are selected and then managed to get the best desired results.