Factors involved in the decision making
There are two kinds of factors to be considered in decision making in favour of any alternatives. These may be classified as
Tangible factors: among the tangible factors relevant to decision making, the important ones are
7. Personal and
The effect of any decision or one or more of the tangible factors can be measured and therefore it is easy to consider the pros and core of every decision. Decisions based on these factors are likely be more rational and free from bias and feelings of the decision maker.
Intangible factors: among the intangible factors which may influence decision making in favour of any alternative, the important ones are the effects of any particular decision on:
Prestige of the enterprise
Employee morale and so on
Accurate information and data about these factors is not easy to obtain. Therefore, intuition and value judgement of the decision maker will assume a significant role in the choice of a particular alternative. Each of these factors is to a greater or lesser extent related to the other factors. For example, information as to product range value and volume of present sales and the existing markets will help decision making regarding change of product mix, entry into new markets, etc. the other related factors are information as to availability of material, finance, product capacity, cost of the new product, and so.