Decision Making

Process

By
Ponmuth
uS &
Daniel R
What is a
Decision?
Choicebetween two or
more alternatives

Ifyou only have one

alternative, you do not
have a decision.
 Decision
Making
“Decision-making involves the
selection of a course of
action from among two or
more possible alternatives in
order to arrive at a solution
for a given problem”.

Decisionmaking process is a
consultative affair done by a
comity of professionals to drive
Decision Making
Process
Decision Making
Process
The step by step method for
taking decisions

A decision maker should follow

these steps before taking
decisions
The Decision Making
Process
Define the Problem
Gather facts and develop
alternatives
Evaluate Alternatives
Select the best alternative.
Implement the chosen
Alternative
Follow up and evaluate the
chosen alternative.
Identify The
Problem
Problem :
A discrepancy between an
existing and desired state of
affairs
Characteristics :
A problem becomes a problem
when a manager becomes aware
of it
 there is a pressure to solve the
problem
 the manager must have the
 Identify The Decision
Criteria
 Decision criteria are factors
that are important ( relevant)
to resolving the problem.
Costs that will be incurred
(investment required).
 Risks likely to be encountered
( chance of failure).
 Outcomes that are desired
( growth of the firm).
Allocating Weights to
Criteria
the
Decisioncriteria are not of
equal importance:

Assigning a weight to each

item.

 Places the items in the

correct priority order of
their importance in the
Generate Alternative
Solutions
Aproblem can be solved
by different alternative
solutions

Develop alternative
solutions

Thinkon all the alternative

possible solutions
Evaluate And Choose
Alternative
Among
Solutions
Feasibility
Acceptability
Costs
Ethics
Quantitative or
qualitative
approaches
Selecting The
Alternative
Choosing the best alternative
 The alternative with the highest
total weight is chosen.
The best alternative is the one
that produces the most
advantages and the fewest
serious disadvantages.
Sometimes, the optimal solution
is a combination of several
alternatives.
Implement And Monitor
Chosen Solution
The
Reveals its effectiveness and
significance in achieving the
desired goals
Depends on careful planning
and sensitivity
To ensure that the alternative put
into action is moving towards
the objectives
Confirms that the organization
1 • Define the Problem,objectives &
goals
2
• Identify The Decision Criteria
3
• Allocating Weights to the
4 Criteria
5 • Gather facts and develop
alternatives
6
• Evaluate Alternatives
7
• Select the best alternative
8
• Implementing the Alternative
Decision Making
Process
 Always continuous & dynamics

 Itis not only a process and

also a practice

A good decision maker will be the

good manager

 Bea best decision maker.., Be a

best manager
Thank
You
????