Decision Making

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 abovementioned 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 decisionmaking, 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 decisionimplementers. 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 n What

Why

What else

What is done? Purpos e

Means

Place

Sequen ce

Person

Is necessary?

What it Why is could it done? done?

How done?

Why it this way?

is

Where done?

Why there?

When done?

Why then?

Who does it?

Why them?

What Should

What else should be be done?

How else?

Where else?

How should? Where should?

When When else? should?

Who else?

Who should?

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.

Action

Outcome 1

Outcome 2.1 Outcome

Outcome 2.2.1

2

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 Skewness:

Central

Tendency,

Dispersion,

&

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.

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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.