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Lecture # 03 for MBA Students on Decision Making
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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 !!