Topic:Decision Making StepsImran MuzamilReg no. (0064)
Definition:A choice between two or more then twoalternatives is called decision
Identify the Problem:When making a decision a personfirst needs to identify and definethe problem or conflict.
Identify Decision Criteria:When a problem identified,the decision criteria importantto resolving the problem mustbe identified. That is, managersmust determine what isrelevant in making decision.
Allocation of Weights to criteria:If the relevant criteria are notequally important, the decisionmaker must weight the itemsin order to give them thecorrect priority in thedecision.
Development of Alternatives:The fourth step in decision makingprocess requires the decisionmaker to list viable alternativethat could resolve. The problemthis is the step where a decisionmaker needs to be creative.
Choose One alternative:After making all the alternatives,the next step in planning or indecision making is to evaluatethese alternatives. Evaluation isrequired in order to select thebest alternative for implementation.
Implementation of the Alternative:After choosing best alternativedecision in to action by conveyingit to those effected and getting theircommitment to it.
Evaluation of Decision effectiveness:The last step the decision makingProcess involve evaluating the outcomeor result of the decision to seeif the problem is resolve.
Topic:Manager Making Decisions & Types ofDecision MakingFiaz RiazReg no.(0014)
Rationality:A type of decision making in which choices are logicalconsistent and maximize value. Bounded Rationality:Decision making thats rational but limited(bounded)by an individuals ability to process information. Intuition:Making decision on the basis of experience, andaccumulated judgment.
Structured Problem:A straightforward, familiar and easily definedproblem. Problem Decision:A repetitive decision that can be handledusing a routine approach.
Unstructured Problem:A problem that is new or unusual and for whichinformation is incomplete. Non Programmed Decisions:A unique and nonrecurring decision that requires acustom made solution.
Certainty:Implies perfect information. All relevant information tothe problem is known. Risk:Implies partial information. Some of all the relevantinformation to the problem is stochastic. Uncertainty:Implies incomplete information. Some of all therelevant information to the problem is missing.
Topic:Decision Making Biases & ErrorsM.UmerReg no.(0116)
Decision Making Bias:Decision making bias is giving a undueinfluence to any one in between two equalthings. Decision Making Error:In Decision making error is a occurrence ofany thing with out knowing.
Overconfidence Bias:In overconfidence bias a manager think that he will doevery thing but real thing some time opposite. Immediate Gratification:Immediate Gratification describes a manager want toimmediate reward.He will prefers Rs.100 of today other then Rs.200 offuture.
Availability Bias:In Availability bias a manager to base their judgmenton information that is readily available to him.E.g. A person fear from Air travel and also car driving.Media report show much more attention on aero plancrash is 10% and 8% car accident & he will understatecar accident and travel in car. Representative Bias: In representative bias a person see another personsrepresentative performance and predict that he can also thisdo this work.
Escalation Bias:Escalation of commitment refers to staying with adecision even when there is clear evidence that iswrong. Selective Perception:When decision maker selectively organize andinterpret a decision on the base of his perception.
Randomness Error:Most of the managers believes that they havesome control over the world and destiny. Andif we undoutly control a good part of eventbut truths is world always having Randomevents .And our tendency to believe we can predictfuture event.