Decesion by faisal hayat

PRESENTED BY:

MUHAMMAD RAHMAN

NOOR UL AMIN

GUL ANDAM TAHIR

FAISAL HAYAT

DECISION

MAKING

PROCESS

CONTENT:What is decisionNeed or Reason of decisionDecision making processProgram & non-program decisionDecision making under certainty, risk,

uncertainty, ambiguityDecision making style

DECISION

Choices among two or more alternatives

-in an organization all members together take decision.

“Decision making”

Definition:

The process of examining your possibilities options, comparing them, and choosing a course of action.

Need or Reason of decision • Problem:- Discrepancy b/w the current

status and desired level

• Opportunity :-favorable chance , - performance can be improved by adopting certain step & availing opportunity.

Six C of Decision Making

• 1. Construct.

• 2. Compile.

• 3. Collect.

• 4. Compare.

• 5. Consider.

• 6. Commit.

Decision making is a key role for any manager or leader. Surprisingly many people struggle when it comes to taking decisions. This might be due to:

• Fear of failure• Lack of a structured approach• Lack of clarity

EIGHT STEPS DECISION MAKING PROCESS

Identification of a problem

Identification of decision criteria

Allocation of Weights to criteria

Development of alternatives

Selection of alternativesImplementation of the alternativeEvaluation of decision effectiveness

Analysis of alternatives

.

Eight-step process

• Step 1 - Identifying a Problem:

what the problem is that you need to take a decision on.

• Step 2 - Identifying Decision Criteria: what is required in making a decision

DECISION MAKING PROCESS

• Step 3 - Allocating Weights to the criteria

weight the criteria to give them appropriate priority in the decision

DECISION MAKING PROCESS

DECISION MAKING PROCESS

• Step 4 – Developing Alternatives

the improve alternatives that could resolve the problem.

Step 5 – Analyzing alternatives-each alternative is evaluated against the criteria

Step 6 -Selecting an alternative

-choosing the best alternative from among those select

DECISION MAKING PROCESS

DECISION MAKING PROCESS

Step 7 – Implementing the Alternativeconveying the decision to those

affected by it and getting their commitment to it

DECISION MAKING PROCESS

Step 8 - Evaluating Decision Effectiveness

• determine whether the problem is resolved

• decision may fail if it is not implemented properly

program & non-program decision: Program decision: Programmed decisions are made in routine, repetitive, well-structured situations with predetermined decision rules. These may be based on habit, or established policies, rules and stem from prior experience about what works or does not work in a given situation.-think & program for taking decision.Non-program decision: Non-program decision is made in respons to situation which is unique, poorly defined and largely unstructured. The creation of a marketing

program & non-program decision: strategy for a new service represents an example of a non-programmed decisione-g: - entering into a new market - setting new equipment and machinery

Decision making situation• Certainty: Is a situation in which a decision

maker has full and needed information to make a decision. Decision is made under the condition of certainty. The manager knows exactly what the outcome will be, as he has enough clarity about the situation and knows the

resources, time available, nature of the problem

itself, possible alternative to resolve problem.

• Risk: Condition under risk provide probabilities regarding expected result for decision making alternatives. The manager face this condition more often in reality compared to conditions under certainty.

Decision has clear cut goals, but future outcomes

associated with each alternatives are subjected to a chance.

• Uncertainty: provide no or incomplete information, many unknowns and possibilities to predict expected results for decision making alternatives. Managers may have to come up with creative

Approaches and alternatives to solve the problems

• Ambiguity:

PRIYANKA GOEL

THANK YOU

18.04.2013

HAVE A NICE DAY.