Decision making is a process of action of selecting the best among alternatives from two or more potential solutions for decision situation which is problem solving or opportunity exploiting and the purposes for attaining a goal or goals. A problem occurs when a system does not meet its established goals, does not yield the predicted results or does not work as planned. Managerial decision making is synonymous with the whole process of management.
Management is a process by which organizational goals are achieved using resources. The resources are considered inputs and attainment of goals is viewed as the output of the process. The success of management depends on the performance of managerial functions such as planning, organizing, directing and controlling.
Let see the managerial function of planning; planning involves a series of decision: what should be done? When? Where? Why? How? Who? Managers are engaged in a continuous of making decisions to perform their roles in organization. Manager is a decision maker.