Decision making process lecture # 03 (06.07.14)

DECISION MAKING PROCESS

Dr. Akhlas AhmedPreston University

MBA Class, Lecture # 03

July 6th 2014

Decision Making StepsRecognize need for

a decision

Frame the problem

Generate & assess alternatives

Choose among alternatives

Implement chosenalternative

Learn from feedback

Decision Making Steps

1. Recognize need for a decision: Managers must first realize the need for which a decision must be made.

Recognize need for a decision

Frame the problem

Generate & assess alternatives

Choose among alternatives

Implement chosenalternative

Learn from feedback

Decision Making Steps

2. Frame the problem: managers must frame problem for which decision is to be made.

Decision Making Steps

Recognize need for a decision

Frame the problem

Generate & assess alternatives

Choose among alternatives

Implement chosenalternative

Learn from feedback

Decision Making Steps

3. Generate alternatives: managers must develop feasible alternative courses of action.▪ If good alternatives are missed, the resulting

decision is poor.▪ It is hard to develop creative alternatives, so

managers need to look for new ideas. Evaluate alternatives: what are the advantages and

disadvantages of each alternative?▪ Managers should specify criteria, then evaluate.

Decision Making Steps

Recognize need for a decision

Frame the problem

Generate & assess alternatives

Choose among alternatives

Implement chosenalternative

Learn from feedback

Decision Making Steps

Decision Making Steps

4. Choose among alternatives: managers rank alternatives and decide.▪ While ranking, all information needs to be

considered.

Recognize need for a decision

Frame the problem

Generate & assess alternatives

Choose among alternatives

Implement chosenalternative

Learn from feedback

Decision Making Steps

5. Implement choose alternative: managers must now carry out the alternative.▪ Often a decision is made and not implemented.

Decision Making Steps

Recognize need for a decision

Frame the problem

Generate & assess alternatives

Choose among alternatives

Implement chosenalternative

Learn from feedback

Decision Making Steps

6. Learn from feedback: managers should consider what went right and wrong with the decision and learn for the future.▪ Without feedback, managers never learn from

experience and might repeat the same mistake.

Decision Making Steps

Recognize need for a decision

Frame the problem

Generate & assess alternatives

Choose among alternatives

Implement chosenalternative

Learn from feedback

Decision Making Process

Thank You !!