DECISION MAKINGPREPARED BY:MASTURA BINTI MOHD ASRISITI FARHANA BINTI AHMAD SUHAIMEENOR EZZAILA BINTI ADNAN
QUESTION 1 Explain with examples the two type of decision making?QUESTION 2 Explain the step in decision making?
What is decision making?• Choices from two or more alternative.Decision making in organizational.• The process by which managers respond to opportunity and treats by analyzing option and making decision about goals and course of action.
TYPE OF DECISION MAKING NON-PROGRAMMED PROGRAMMED DESICION DESICION The decision are made The same decision based on information and have been made manager’s intuition and many time before judgment Unusual situations that Routine, almost have not been often automatic process addressed
Programmed Characteristics Non-programmed decisiondecisionStructured Type of problems UnstructuredManagerial level Lower levels Upper levelsFrequency Repetitive routine New , unusualReadily available Information Ambiguous / incompleteClear , specific Goals VagueShort Time frame for solution Relatively longProcedure , rules , Solution relies on… Judgment and creativitypolicies
• Identifying a problem 1S • Identifying decision making 2TE • Allocating weights to the criteria 3P • Developing alternative 4 • Analyzing alternativesO 5F • Selecting an alternatives 6 • Implementing the alternativesD 7M 8 • Evaluating decision effectiveness
Identifying a problems• Problem and characteristic of problems.Identifying decision making• Decision criteria are factors that are important to resolving the problem.Allocating weight of criteria• Decision criteria are not equal importance.Developing alternatives• Identifying viable alternatives.
Analyzing alternatives• Appraising each alternative’s strengths and weaknesses.Selecting an alternatives• Choosing the best alternatives.Implementing alternative• Putting the chosen alternative into action.Evaluating decision effectiveness• The soundness of the decision is judge by its outcomes.
TYPES OF DECISION MAKINGRATIONALITY INTUITION BOUNDED RATIONALITY
RATIONALITYA method of systematically selecting among possiblechoice that is based on reason and fact.Step :1) Determine the problem2) Conduct research to find possible options3) Compare the advantages and the disadvantages4) Choose the right course of actions5) Design and developing an action plan6) Analyzing the result
BOUNDED RATIONALITY• Behave rationally within parameters of a simplified decision- making process that is limited by an individuals ability to process the information.• Consist of action on the basis of sufficient knowledge rather that complete knowledge
INTUITIONIts making decision based on the basic ofexperience , feeling and accumulated judgment.Types of intuition :1. Primitive instincts2. Conditioned emotional responses3. Bodily intuition4. Mystical intuition5. Interpersonal intuition6. Practical intuition7. Expertise intuition