1. MAKING DECISIONS

2. Objective To be able to:
Explain and apply organisational decision processes

3. Activity Identify three decisions you are involved in.
Write down how one of these decisions is made.

4. Decision-making Process
Formulate the problem
Construct a model to represent the problem
Use the model to generate the solution

5. Models Rational decision-making Limited rationality model
Logical incrementalism
Emergent decisions

6. Rational decision-making
Define the decision
Establish the objectives
Classify the objectives (must/want)
Define the musts (objective measurement)
Define the wants (weighting)
Generate alternatives
Test alternatives against “musts”
Score remaining alternatives against “wants”
Select best alternative

7. Limited rationality model
Search for a solution
Stop when a feasible solution is obtained
Used for:
Higher level decisions
Conflicting objectives
Incomplete information
Qualitative factors

8. Logical incrementalism
Follow-up to limited rationality decision
Refine decision as you proceed

9. Emergent decisions Piecemeal and unstructured
Decision-making is a continuing process
Suitable for higher level decisions

10. Preparing for decision-making
List alternatives
Details about alternatives
List advantages/disadvantages of alternatives
List criteria for making decision
Analyse advantages/disadvantages
Draw conclusions from analysis
Analyse risks
Plan implementation
Identify obstacles to implementation
Make recommendation

11. Preparing for decision-making
List alternatives
Details about alternatives
List advantages/disadvantages of alternatives
List criteria for making decision
Analyse advantages/disadvantages
Draw conclusions from analysis
Analyse risks
Plan implementation
Identify obstacles to implementation
Make recommendation
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