2. z
What is decision making?
Decision making is choosing between two
alternatives or
Selecting between two or more choices or
alternatives is known as decision making.
decision making process
There are total eight steps to decision making. One
must know these steps to be good decision maker.
3. z
Decision making process
Decision making is the process of
identifying a problem,
• Decision criteria,
• Allocating weights to criteria
• Developing, analyzing and selecting
alternatives
• implementing the selected alternative
• Evaluating the effectiveness
4. z
Identifying the problem
Identifying the problem is very important. If managers
are not aware of real problem he or she can make a
chain of bad decisions
A problem is a problem when manager becomes aware
of it. Then there is constant pressure on the manager to
solve the problem.
Managers must have the information, authority and
resources which are needed to solve the problem
5. z
Decision criteria
There are many factors in decision criteria such as,
investments required to solve the problem
How will the decision affect the organization in
achieving goal’s
What problems will be encountered while decision
making.
6. z
Allocating wieghts to criteria
Term allocating wieghts can be simply defined as we
categorize what is more important and what is less
important.
It can be done by number system. Which is like we
give more numbers to those which Are more
important and less numbers to those which are less
important
7. z
Developing alternatives
Developing alternatives means what are the alternatives which
can solve the problem. For ex: if my organization has slow
internet problem due to service provider then alternatives will be
other internet service providers such as : ptcl, connect, storm
fiber.
Analyzing alternatives
• After we have developed the alternatives, we analyze pros and
cons of each alternative
• Which alternative suits more to our Decision criteria.
8. z
Selecting alternative
After we have developed the alternatives and
analyzed the strength and weaknesses of
alternatives. We select the best alternative which
suits more to our decision criteria or which Is best
choice for our criteria.
Implementing the
selected alternative
• After we have selected the alternative, we take
the decision and implement the selected
alternatives
9. z
Evaluating the effectiveness
Last step in the decision making orocess is evaluating the
effectiveness
After we have implemented the desired selected alternative, we
evaluate the effectiveness of the choice that we made.
How it effects to our organization. For ex: my internet service
provider was not good I developed alternatives and best alternative
was stormfiber. So I implemented the choice and changed ny
Previous isp (Internet service provider) to stormfiber
Now i evaluate, was my choice wrong or correct. How new internet
service provider impacts on my organization.
