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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.