The act or process of choosing a preferred option or course of action from a set of alternatives which precedes and underpins almost all deliberate or voluntary behavior (Colman, 2015)

1. How do you make a good decision?
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2.  the act or process of choosing a preferred
option or course of action from a set of
alternatives which precedes and underpins
almost all deliberate or voluntary behavior
(Colman, 2015).
 Choices:
- Personal decision
- Decisions in conjunction with a profession

3.  Based on the assumption that people are
basically rational, so if they have all of the
relevant information, they will make a
decision that results in the maximum
expected utility (Goldstein, 2011).
 Utility refers to outcomes that achieve a
person's goals.
• In fact, decision making is not determined by
utility theory, but other factors based on the
research.
E.g. The study of picking jelly bean conducted
by Denes-Raj and Epstein (1994) ,
the research of how contestants respond in
the TV game Deal or No Deal (Post, 2008)

6. Types of decision making:
Three major types which are individual, business and consumer. Consumer
decision making is made in both an individual and business environment.
1. Business decision making includes decisions that are made that determine
business or organization outcomes.
2. Personal decision making has the decisions that determine who we are as
individuals and the outcomes we create for ourselves and others with which we
have relationships. Can be considered as life choices.
3. Consumer decision making consists of choices that determine our
effectiveness in purchase decisions that occur in either a personal or business
context.

7.  Examples for each type:
 Business decision
- Company decided to fire workers during economy crisis to save
money. The decision is made to save the company.
 Personal decision
- planning what course you want to take when you fill up your
college entrance form.
 Consumer decision
- the decision to buy printer that expensive but with good quality
or printer that have lower quality but cheaper.

8. Programmed and Non-Programmed Decisions
It is used in an organization. Programmed decisions are for the low level
part of an organization and non-programmed is for high-level part of
organization.
Programmed decisions are routine decision, which follow certain guidelines
to be applied to a certain situation that are expected to occur.
Non-programmed decisions are one-shot decisions. It is a respond towards
an opportunity or threats.

9. Examples:
Programmed decision
- How the items on a mart are stockpiled in they’re
certain areas.
Non-programmed decision
- When the numbers customer in a mart increase. They
need to increase the number of worker and items.
Programmed decisions are less prone to error compared to non-
programmed decisions. Even when there is an error in programmed
decision they are minor compared to error in programmed decision.

10. FACTORS IN MAKING
DECISIONS
1. Past experiences
-when something positive results yielded from a past decision,
people are more likely to decide in a similar way, given a
similar situation
-avoid repeating past mistakes
2. Incidental emotions
-emotions come from other sources that we carry with us to the
decisions even though they are not directly related to the
decisions

11. 3. Cognitive biases
 thinking patterns based on observations and
generalizations that may lead to memory errors,
inaccurate judgments, and faulty logic
 EG. belief bias
4. Individual differences
- age, socioeconomic status (SES), and cognitive
abilities
-older people, cognitive function declines, decision
making function drops as well
-lower SES, less access to education and resources,
more susceptible to experiencing negative life
events

13.  When more than one alternative exists
 Designed to attain well-defined objectives.
 To identify the best alternative
 Intellectual or rational process
 The end process preceded by reasoning and judgment
 Involves a certain commitment.
 short term or long term depending upon the type of decision.
 Related to the situation or the environment

14. ‘’Weighing up the positive and negative consequences of
decision, by transform into template>rate> and score each
consequences’’

15.  To avoid ‘’analysis paralysis’’ (state which we use spend much
time in analysing and considering the decision to be make.
 Quicker
 Simple
 Clearly seen
 Confident

16. (Pros-and-cons template)
 Rate from mildly unfavourable (-1) to strongly favourable
(+5)
 Sum up each column
 +ve result : go ahead with the decision plan/action
 -ve result: dismiss the decision plan
Pros Cons
1.
(Mark)
1.
(Mark)
2.
(Mark)
2.
(Mark)
3.
(Mark)
3.
(Mark)
Total mark: Total mark:

17. Tools for decision making
•Multivoting group technique
•Nominal group technique

18. MULTIVOTING GROUP TECHNIQUE
Multivoting Procedures
• Step 1 - Work from a
large list
• Step 2 - Assign letter to
each item
• Step 3 - Vote
• Step 4 - Tally the votes
• Step 5 - Repeat
What Is Multivolting
Group Technique???
• A group decision-
making technique used
to reduce a long list of
items to a manageable
number by means of a
structured series of
votes.

19. NOMINAL GROUP TECHNIQUE
Nominal Procedures
• Part I - Define the Issue
and Generate Ideas
• Part II - Make the
Selection
What Is Nominal Group
Technique???
• A weighted ranking
method that allows a
group to generate and
prioritize a large
number of issues
within a structure that
gives everyone an
equal voice.

20. DIFFERENCE BETWEEN MULTIVATING
AND NOMINAL GROUP TECHNIQUE
Multivating
• Reduces a list
• Prioritizes a list
• Identifies important items
Nominal
• Reduces the number of
issues
• All team members
participate
• Rank orders items

21. Decision Making
Activities
1. Lost at sea
2. The Great Egg Drop
3. Create Your Own

22. Lost at sea
• Pretend that have been shipwrecked and are
stranded in a life boat.
• Each team has a box of matches, and a
number of items that have to be listed from
most important to the least.
• The time normally between 25 and 40The time normally between 25 and 40
minutes.minutes.

23. List of items Individual
ranking of
items
Group
ranking of
items
Actual
ranking of
items
Game
individual
ranking
Game group
ranking

24. The Great Egg Drop
• Work together to build a container to protect an egg,
which is dropped from a height.
• Raw egg for each group, plus some reserves in case
of accidents.
• The time is around 15 to 30 minutes to create the
packages.

25. Create Your Own
• Create their own, brand new, problem-solving
activity.
• The time is around one hour.
• Each team must present their new activity and
outline its key benefits.