5 Industrial Project Final

8/3/2019 5 Industrial Project Final

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DEPARTMENT OF MANAGEMENT

SCIENCES,UNIVERSITY OF PUNE

TO KNOW THE FACTORS AFFECTING

DECISION MAKING PROCESS

(UNDER GENERAL AND SPECIFIC SITUATION)

SUBMITTED BY:

RollNo.

NameRollNo.

Name

8357 Manish Soni 8364 Pravin Pathrabe

8358 Rakhi Thakur 8365 Indranil Phadke

8359 Nitin Banka 8366 Ravi Nagrani

8360 Nishant 8367 Yogesh Khomane

8361 Ramesh Saha 8368 Srijal

8362 Kunal Patil 8369 Sharif Sharfa

8363 Smitrup Patnaik


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TO KNOW THE FACTORS AFFECTING

DECISION MAKING PROCESS

(UNDER GENERAL AND SPECIFIC SITUATION)


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Department of Management

Sciences (PUMBA)

University of Pune

CERTIFICATE

This is to certify that the Research Project

report titled To know the factors affecting

decision making process carried out at The

Department of Management Sciences(PUMBA), University of Pune, towards the

partial fulfilment of the requirement for the

assessment of Industrial Project and the

same has been satisfactorily carried out under

the guidance of Mr. Anirudha Joshi during

the academic year 2008 - 2009.

Mr. Anirudha Joshi

Dr. B. V. Sangvikar


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Faculty

Head of Department

PUMBA PUMBA

Acknowledgement

Research requires cooperation of many people. Our

research project has been successful due to help and

cooperation of many people. We take the opportunity

to thank them.

Firstly, we will like to thank our research guide Mr.

Anirudha Joshi without his help our project would not

have been successfully completed.

Secondly, we would like to thank our Library Dept. and

Computer Lab for their cooperation throughout theproject.

We would like to thank our friends and other team

members who have really taken hard work during the

entire project.


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Last but not least we would like to thank Almighty God

with him everything is possible.

CONTENTS

Sr.N

o.

TOPIC

No.

1 SYNOPSIS

2 LITERATURE REVIEW

3 DATA COLLECTION AND PRESENTATION

4 ANALYSIS OF DATA AND THE TEST USED

4.1 CALCULATING MEAN & STANDARD DEVIATION OF SAMPLE

4.2 TESTING THE EQUALITY BETWEEN TWO SAMPLES USING T-TEST

4.3 TESTING THE EQUALITY BETWEEN VARIANCES OF THE TWO

SAMPLES USING ANOVA TEST.

4.4 TESTING THE CORRELATION BETWEEN SAMPLES USING MAYBE

SYSTEM.


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5 CONCLUSION

6 SUGGESTIONS AND RECOMMENDATIONS

7 BIBLIOGRAPHY

CHAPTER 1

INTRODUCTION:

We all make decisions of varying importance every day, so the idea that decision making can

be a rather sophisticated art may at first seem strange. However, studies have shown that

most people are much poorer at decision making than they think. An understanding of what

factors affect decision making will help produce better decisions.

Research Objectives:

1) Primary Research Objective:

To find out about the factors affecting decision making process

under general and specific condition.

2) Secondary Research Objective:

To determine the correlation between the various variables, with

respect to willingness, attitude and awareness.


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Primary Research:

In our survey, we have used primary sampling method. Random samples

were picked upon among students and non-students. The required

information was gathered directly from 60 respondents through personal

interview technique.

This includes:

Direct Personal Investigation using Questionnaire method

Sampling:

Random sampling techniques (Stratified random sampling)

Sampling Unit:

Different corporate people in the Pune & Mumbai city.

Statistical analysis:

Mean & Standard deviation is used to analyse the responses in thesamples. T test has been used to know the equality of above

characteristics between the samples. Multiple correlations to test relation

between above characteristic within a sample

Conclusion:

From the sample analysis, we found that 77% of the people take overall

decisions on may be system, i.e., they are not sure about the results. They

dont undergo the rigorous analysis of information which may be useful to

take decisions. It is found that


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CHAPTER 2.

LITERATURE REVIEW

Every decision is made within a decision environment, which is defined as the collection

of information, alternatives, values, and preferences available at the time of the decision. An

ideal decision environment would include all possible information, all of it accurate, and

every possible alternative. However, both information and alternatives are constrained

because the time and effort to gain information or identify alternatives are limited. The time

constraint simply means that a decision must be made by a certain time. The effort constraint

reflects the limits of manpower, money, and priorities. (You wouldn't want to spend three

hours and half a tank of gas trying to find the very best parking place at the mall.) Since

decisions must be made within this constrained environment, we can say that the major

challenge of decision making is uncertainty, and a major goal of decision analysis is to reduce

uncertainty. We can almost never have all information needed to make a decision with

certainty, so most decisions involve an undeniable amount of risk.

The fact that decisions must be made within a limiting decision environment suggests two

things. First, it explains why hindsight is so much more accurate and better at making

decisions that foresight. As time passes, the decision environment continues to grow and

expand. New information and new alternatives appear--even after the decision must be made.

Armed with new information after the fact, the hindsighters can many times look back and

make a much better decision than the original maker, because the decision environment has

continued to expand.


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The second thing suggested by the decision-within-an-environment idea follows from the

above point. Since the decision environment continues to expand as time passes, it is often

advisable to put off making a decision until close to the deadline. Information and

alternatives continue to grow as time passes, so to have access to the most information and to

the best alternatives, do not make the decision too soon. Now, since we are dealing with real

life, it is obvious that some alternatives might no longer be available if too much time passes;that is a tension we have to work with, a tension that helps to shape the cutoff date for the

decision.

Delaying a decision as long as reasonably possible, then, provides three benefits:

1) The decision environment will be larger, providing more information. There is alsotime for more thoughtful and extended analysis.

2) New alternatives might be recognized or created. Version 2.0 might be released.

3) The decision maker's preferences might change. With further thought, wisdom, and

maturity, you may decide not to buy car X and instead to buy car Y.

Decision making can be regarded as an outcome of mental processes (cognitive process)

leading to the selection of a course of action among several alternatives. Every decision

making process produces a final choice. The output can be an action or an opinion of choice.

Human performance in decision making terms has been the subject of active research from

several perspectives. From a psychological perspective, it is necessary to examine individual

decisions in the context of a set of needs, preferences an individual has and values they seek.

From a cognitive perspective, the decision making process must be regarded as a continuous

process integrated in the interaction with the environment. From a normative perspective, theanalysis of individual decisions is concerned with the logic of decision making and rationality

and the invariant choice it leads to.

Yet, at another level, it might be regarded as a problem solving activity which is

terminated when a satisfactory solution is found. Therefore, decision making is a reasoning or

emotional process which can be rational or irrational, can be based on explicit assumptions or

tacit assumptions.

Logical decision making is an important part of all science-based professions, where

specialists apply their knowledge in a given area to making informed decisions. For example,

medical decision making often involves making a diagnosis and selecting an appropriatetreatment. Some research using naturalistic methods shows, however, that in situations with


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higher time pressure, higher stakes, or increased ambiguities, experts use intuitive decision

making rather than structured approaches, following a recognition primed decision approach

to fit a set of indicators into the expert's experience and immediately arrive at a satisfactory

course of action without weighing alternatives. Recent robust decision efforts have formally

integrated uncertainty into the decision making process. However, Decision Analysis,

recognized and included uncertainties with a structured and rationally justifiable method ofdecision making since its conception.

CHAPTER 3

DATA COLLECTION & PRESENTATION

Data was directly collected from the 100 correspondents using

direct personal interviewing or through mail. Our data was divided into 7

groups age wise viz. Gr1(21-25), Gr2(26-30) upto Gr7(51-55). Here the

data about decision habits of the people was gathered. Also their general

information was collected.

Questionnaire Details:

The Questionnaire consists of total 56 questions testing the various

characteristics of the elements on which decision is being taken. In the


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Questionnaire, the questions are designed so that the traits like whether

individual like to take decision on his own or he seeks support, whether he

is risk taker or prefers safe mode. Scaling is done on the basis of various

responses received from the respondents. The responses are measured

giving more weightage for more positive response.

A copy of Questionnaire is attached in the Annexure.

Data Collection and Presentation:

Tables consisting of the various data of corporate people with calculated mean,

Standard deviation are given below.

Q.N. 20-25(1) 26-30(2) 31-35(3) 36-40(4) 41-45(5) 46-50(6) 51-55(7)

MEAN

STDEV

MEAN

STDEV

MEAN

STDEV

MEAN

STDEV

MEAN

STDEV

MEAN

STDEV

MEAN

STDEV

1

4.1

3

0.8

3

3.7

3

1.1

7

4.2

1

0.7

0

2.9

1

1.7

6 3.5

1.2

7 3.8

1.5

5 4

1.0

5

23.1

31.0

63.2

01.2

12.4

31.1

63.3

61.2

1 3.11.3

73.0

01.0

5 3.21.1

4

33.8

70.7

43.3

70.8

53.6

40.8

42.9

10.7

0 3.80.9

23.7

00.9

5 3.50.8

5

43.4

70.9

93.2

30.9

44.4

30.6

53.0

91.3

0 3.31.4

23.1

01.1

0 3.51.0

8

52.9

31.1

62.4

31.1

02.7

11.1

42.0

90.5

4 2.71.1

62.3

01.4

2 2.90.7

4

63.2

01.1

53.4

71.2

24.0

00.9

63.0

01.1

8 3.51.2

73.1

01.2

9 3.30.9

5

73.6

71.1

13.2

31.1

43.5

01.0

22.6

40.9

2 3.70.8

23.4

00.9

7 3.90.7

4

83.3

30.9

02.7

30.9

82.6

41.5

02.1

80.6

0 3.11.1

03.1

01.1

0 3.21.0

3


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262.8

00.9

43.7

70.9

73.7

10.9

93.3

61.3

6 3.81.0

33.2

01.2

3 3.80.9

2

273.4

00.9

92.9

01.2

72.8

61.7

53.4

51.6

3 3.41.2

63.4

01.0

7 31.3

3

282.4

00.9

12.6

01.2

52.2

91.1

42.3

60.9

2 2.81.3

22.4

01.1

7 2.50.8

5

293.6

00.9

93.6

31.0

03.7

11.0

73.8

20.9

8 3.21.1

43.5

01.4

3 3.70.8

2

303.4

71.0

63.2

71.0

83.4

31.2

23.4

51.4

4 31.1

53.3

01.3

4 3.20.9

2

312.8

71.0

63.1

31.0

72.7

91.6

33.4

50.8

2 3.41.4

33.7

01.1

6 3.10.9

9

323.6

00.9

13.3

01.2

13.9

30.8

33.2

70.7

9 40.8

23.7

00.4

8 4.10.5

7

333.4

70.7

43.5

70.8

23.7

90.8

93.4

50.8

2 4.21.1

43.7

01.3

4 3.60.8

4

343.1

31.1

33.4

71.1

73.1

41.5

13.6

41.3

6 3.91.1

03.4

01.2

6 3.41.0

7

35 3.20 1.01 3.53 1.01 3.57 1.09 3.64 1.36 3.9 1.20 3.60 0.97 3.3 0.48

362.7

31.2

82.7

71.2

52.5

71.4

53.6

41.5

0 3.21.3

22.7

01.5

7 3.50.8

5

374.1

30.8

33.7

31.0

84.2

90.8

33.0

01.3

4 41.2

53.2

01.4

0 3.51.2

7

383.5

31.0

63.0

71.0

53.1

41.2

33.7

31.1

0 3.21.4

03.6

01.0

7 3.31.0

6

392.6

70.9

03.0

71.3

12.6

41.2

83.7

30.9

0 31.4

12.7

01.2

5 3.31.0

6

402.9

30.9

62.9

01.1

22.7

11.3

83.0

01.5

5 31.0

52.5

01.0

8 3.31.1

6

41

3.4

0

1.4

0

3.4

7

1.2

0

4.0

0

0.9

6

3.9

1

0.9

4 3.9

0.8

8

2.8

0

1.0

3 3.1

1.5

2

423.5

31.3

03.2

71.3

14.0

00.7

83.5

51.4

4 3.90.7

43.7

01.0

6 3.71.1

6

433.4

70.8

33.1

71.1

23.0

01.0

42.6

40.9

2 4.21.0

33.3

01.0

6 3.60.8

4

443.0

01.5

63.6

31.0

73.5

71.0

93.6

41.3

6 3.81.2

33.9

01.1

0 3.61.5

1


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Tables showing the T-test results of the age groups are as follows :-

T12 T23 T34 T45 T56 T67

1.32 1.69 2.31 0.89 0.47 0.34

0.20 2.02 1.94 0.46 0.18 0.412.03 0.99 2.37 2.48 0.24 0.500.78 4.91 3.13 0.35 0.35 0.821.39 0.77 1.79 1.52 0.69 1.180.73 1.56 2.28 0.93 0.70 0.391.24 0.79 2.21 2.79 0.75 1.302.05 0.21 1.05 2.35 0.00 0.210.23 1.22 1.74 0.44 1.96 1.450.47 3.06 1.72 0.19 0.91 0.980.12 0.66 1.64 0.92 0.52 0.51

0.08 2.05 2.28 0.32 0.95 1.421.37 0.70 0.24 1.84 1.48 0.210.00 0.64 0.34 1.10 0.97 0.000.85 0.45 0.09 0.04 0.33 1.320.11 1.21 1.12 0.30 0.18 0.000.42 0.74 0.48 0.31 0.39 0.610.24 0.41 0.20 0.49 0.36 1.031.51 2.08 1.73 0.17 0.43 0.892.05 1.35 1.43 1.30 0.88 0.460.58 0.43 0.30 0.87 1.50 0.90

0.42 0.37 0.92 0.05 1.50 0.930.25 1.47 2.95 2.34 0.80 0.000.43 1.47 1.50 0.39 0.16 0.820.09 1.08 2.57 0.55 1.20 1.050.76 0.32 0.26 1.13 0.39 1.440.07 1.85 1.49 0.22 0.28 0.310.99 0.75 0.15 0.50 0.44 0.180.55 1.46 0.51 1.00 0.98 0.000.07 2.80 1.67 0.82 0.00 0.641.02 2.16 1.39 0.16 1.01 0.75

0.00 0.79 1.31 0.30 0.58 2.100.73 1.94 1.77 0.27 0.33 0.16


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1.91 1.12 1.25 0.46 0.74 0.941.13 0.48 0.81 0.68 0.18 0.190.42 0.72 0.17 0.02 0.18 1.110.17 0.46 0.66 0.27 0.30 0.893.23 0.19 0.72 0.84 1.18 1.241.45 0.08 0.87 0.08 0.00 0.740.61 0.81 0.17 0.88 0.72 0.220.10 0.24 0.27 1.33 0.52 0.380.59 0.42 0.04 0.79 0.54 0.190.77 0.71 1.32 0.10 0.52 1.240.93 2.01 2.03 2.07 1.00 1.700.41 0.78 0.99 1.72 0.90 0.200.94 0.72 0.87 0.48 0.95 0.001.03 0.12 0.14 0.47 0.61 0.880.10 0.44 1.80 0.71 0.77 1.421.37 1.89 2.80 1.77 1.35 0.501.38 0.18 1.26 0.96 0.72 0.631.20 1.03 2.50 1.40 0.50 1.160.09 0.45 0.49 0.00 1.05 1.600.17 1.57 0.24 0.03 2.57 0.520.63 2.30 0.93 0.71 0.49 0.001.01 0.49 0.92 3.65 1.93 0.701.41 0.17 0.14 0.28 0.19 0.51


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CHAPTER 4

ANALYSIS OF DATA AND THE TEST USED

4.1 - SIMPLE STASTICAL TOOLS

In this chapter we have discussed about the various statistical tools which we have

prominently used in our research work.

These are some of the statistical tools which we have used given below:

Mean: It is the simple average of the given data.

Median: It is the middle value of the given data arranged either in ascending or descending

order.

Mode: It is the highest frequent item in the data.

Standard Deviation: Standard Deviation is defined as the square root of the average ofsquares of deviation, when such deviations for the values of individual items in a series are

obtained from the mean.

Summation: It gives the collective view of the given data or series.

The above tools are used in the following manner in our research work as given below:

Mean: Mean is showing the average response given by the respondents of a particular

question, e.g. in group-1 the mean of responses for question-1 is 3.31.It means on a scale of

1to 4 the average scale of responses of all the individuals in the sample is 3.31.

Median: Median is showing the middle number in the scale of responses given by the sample

if these scale are arranged in either ascending or descending order, e.g. in group-1 the median

scale of responses is 3 it shows there are equal number of scales given below or above 3.

Mode: Mode is showing the highest number of responses given by the respondents, e.g. in

group-1 the highest number of responses given by the respondents is 3 which is the mode of

the responses of the question-1.

Standard Deviation: Standard deviation is showing the fluctuation of the responses of the

different respondents in the sample about the sample mean, e.g. In group-1 the standard


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deviation is .60 and the mean is 3.31.It mean the responses of the respondents in the sample

vary in the interval of Mean +/- S.D. i.e. 3.31 +/- .60.

4.1 Calculating Standard deviation of the sample:

Standard deviation of the sample is calculated using standard

formula

Standard Deviation:

= ((fd'2/N)-(fd'/N)2)C

Based on the collected data standard deviation for each reading is

calculated.

4.2 Testing the equality between two samples using T-

test

As the sample size is small we will use t-test.

|X1-X2|

t = |

where X1 and X2 are the means of the samplesS1 and S2 are the standard deviation of the samplesN1 and N2 are the total number of samples collected.


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Annexure

Name:- _______________________________________________

Age:- ________

Email:-________________________________________________

Occupation:-_________________________________Designation:-_________________________________

Company/Institute:-____________________________

Objective: - This survey is conducted to know the factors affecting the decision making processunder general/specific situations.

Please show how often each of the following applies to you by circling the number that you

think applies. 1=very infrequently or never, 2=infrequently, 3=neutral, 4=frequently,

5=very frequently or always.

1) Do you enjoy making decisions? 1 2 3 4 5

2) Do you rely on gut feelings when making decisions? 1 2 3 4 5

3) Do you like to consult with others? 1 2 3 4 5

4) Do you stick by your decisions come what may? 1 2 3 4 5

5) When you find one option that will just about do, do you leave

it at that?

1 2 3 4 5

6) Do you remain calm when you have to make decisions very

quickly?

1 2 3 4 5

7) Do you feel in control of things? 1 2 3 4 5

8) How often are your decision governed by your ideals regardless

of practical difficulties?

1 2 3 4 5

9) Do you make decisions without considering all of theimplications?

1 2 3 4 5

10) Do you change your mind about things? 1 2 3 4 5

11) Do you take the safe option if there is one? 1 2 3 4 5

12) Do you prefer to avoid making decisions if you can? 1 2 3 4 5

13) Do you plan well ahead? 1 2 3 4 5

14) When making decisions do you find yourself favouring first one

option then another?

1 2 3 4 5

15) Do you carry on looking for something better even if you have

found a course of action that is just about OK?

1 2 3 4 5

16) Do you find it difficult to think clearly when you have to decide

something in a hurry?

1 2 3 4 5

17) Do you make up your own mind about things regardless of what

others think?

1 2 3 4 5

18) Do you avoid taking advice over decisions? 1 2 3 4 5


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19) Do you work out all the pros and cons before making a

decision?

1 2 3 4 5

20) In your decision making how often are practicalities more

important than principles?

21) Is your decision making a deliberate logical process?

1

1

2

2

3

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5


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22) Please could you tell us if any of the following have ever

applied to you

a) Recreational risks (e.g. rock climbing, scuba climbing)

b) Health risks (e.g. smoking, heavy drinking)

c) Career risks (e.g. quitting a job without smother to go to)

d) Financial risks (e.g. gambling, risky investments)

e) Safety risks (e.g. fast driving, driving without helmet)f) Social risks (e.g. standing for election, publicly changing a

rule or decision)

23) Thinking of past few weeks, how much time has your work

made you feel each of the following

a) Tense

b) Optimistic

c) Depressed

d) Calm

e) Relaxed

f) Worried

g) Enthusiastic

h) Uneasy

24) High risk activities excite me.

25) I like to make decisions quickly and instinctively.

26) Before buying a quite expensive item I do exhaustive research.

27) I would like to put myself in situations where anything can

happen.

28) Nothing makes me angry

29) I would like to gather lot of data on any new opportunities that

arise.

30) I love taking chances

31) I like tasks where end result is unpredictable

32) Success is all that matters to me.

33) I like to take my time over most decisions

34) Traffic irritate me35) I am concerned about the security at manufacturing unit

36) Stock market affect my business

37) Future financial planning is needed

38) Brand give me satisfaction

39) Rupee value affect my buying decision

40) Inflation affect my buying decision

41) Education has impact on my buying decision

42) Experience affect my buying decision

43) My family plays important role while buying

44) There is a logic when I purchase

Suggestions:-

__________________________________________

__________________________________________

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Documents

5 Industrial Project Final