1. Decision making

2. Types of decision Programmed decisions Non-programmed decisions

3. Features of decision types Programmed –Repetitive/routine –For example: processing applications –Procedures: Apply rules Apply policies Use standard procedures Non-programmed –Complex/new –For example: Introduce new product Building new facilities –Procedures: Creative problem solving

4. Process of decision making 1. Identify problem

5. Process of decision making 1. Identify problem 2. Develop alternative solutions

6. Process of decision making 1. Identify problem 2. Develop alternative solutions 3. Evaluate alternative solutions

7. Process of decision making 1. Identify problem 2. Develop alternative solutions 3. Evaluate alternative solutions 4a. Certainty conditions 4b. Risk conditions 4c. Uncertainty conditions

8. Process of decision making 1. Identify problem 2. Develop alternative solutions 3. Evaluate alternative solutions 4a. Certainty conditions 4b. Risk conditions 4c. Uncertainty conditions 5. Select alternative

9. Process of decision making 1. Identify problem 2. Develop alternative solutions 3. Evaluate alternative solutions 4a. Certainty conditions 4b. Risk conditions 4c. Uncertainty conditions 5. Select alternative 6. Implement decision

10. Process of decision making 1. Identify problem 2. Develop alternative solutions 3. Evaluate alternative solutions 4a. Certainty conditions 4b. Risk conditions 4c. Uncertainty conditions 5. Select alternative 6. Implement decision 7. Evaluate and control

11. Process of decision making 1. Identify problem 2. Develop alternative solutions 3. Evaluate alternative solutions 4a. Certainty conditions 4b. Risk conditions 4c. Uncertainty conditions 5. Select alternative 6. Implement decision 7. Evaluate and control

12. Terminology State of nature –Event beyond a manager’s control – that could actually happen Strategies –Describes alternative solutions available to decision-maker