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DECISION MAKING This is an act of choice where a conclusion is formed about what must and what must not be done in a given situation.

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Presentation on theme: "DECISION MAKING This is an act of choice where a conclusion is formed about what must and what must not be done in a given situation."— Presentation transcript:

1 DECISION MAKING This is an act of choice where a conclusion is formed about what must and what must not be done in a given situation.

2 Decision making process Identify the problem A problem refers to a discrepancy between an existing and a desired state of affairs. Thorough diagnostic efforts should be made to determine the exact causes of the problem.

3 Decision making process cont... Collect relevant information Gather relevant information for solving the problem. Develop alternatives This involves identifying and developing possible solutions from the obtained information.

4 Decision making process cont... Evaluate alternatives Assess the strengths and weaknesses of each alternative with the intention to select the best. Select and implement the best alternative Properly implement selected decisions to ensure non-recurrence of the problem.

5 Types of decisions P rogrammed/routine decisions These are regularly made decisions and have predictable results. They depend on policies and procedures to guide the user.

6 Types of decisions cont... Semi-programmed/Adaptive decisions A combination of moderately unusual and partially known problems and solutions. The implementer would gradually modify partly routine decisions and practices to make continuous improvements.

7 Types of decisions cont... Non-programmed/non-routine decisions These are new, risky and non-recurring decisions based on the discovery of unusual problems and the development of creative solutions. They are often made in dynamic environment with unpredictable results. These decisions are not logically made since the process involves defining unusual problems using limited information and changes that come in different times.

8 Conditions under which decisions can be made Certainty condition (programmed decisions) This is when the manager is fully informed about the problem, the alternative solution and the possible outcomes of each solution. Uncertainty condition (semi-programmed decisions) It is when managers have insufficient information to assign probability to a decision outcome. Risk condition (non-programmed decisions) When managers have no information to assign probability to the outcome of a decision....

9 Group decision making Decision-making process performed by several individuals.

10 Advantages of group decision making Groups provide a broader viewpoint. Employees are more likely to be satisfied and to support the final decision. Groups promote discussions which help to answer questions and reduce uncertainties for decision makers. groups inspire star performers to higher levels of productivity

11 Disadvantages of group decision making Time-consuming than individual decision making Decisions reached could be a compromise rather than the optimal solution.


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