Decision Making


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Decision Making

  1. 1. DECISION MAKING CSH Pharma Group
  2. 2. What you think what is decision making?
  3. 3. Which Mobile Phone should I buy? What are the things you consider before making a decision?
  4. 4. What are the things you consider before making a decision?
  5. 5. Decision Making Decision Making <ul><li>What is Decision Making? </li></ul>2. Barriers to Good Decision Making 4. Decision Making Tools 3. Decision Making Process
  6. 6. Decision Making <ul><li>The process of examining your possibilities options, comparing them, and choosing a course of action. </li></ul><ul><li>A choice from two or more alternative </li></ul>
  7. 7. Barriers to Good Decision Making “ Successful leaders have the courage to take action while others hesitate.” - John C. Maxwell
  8. 8. Hasty - Making quick decisions without having much thought. Narrow - Decision making is based on very limited information. Scattered - Our thoughts in making decisions are disconnected or disorganized. Fuzzy - Sometimes, the lack of clarity on important aspects of a decision causes us to overlook certain important considerations.
  9. 9. Making Effective Decisions <ul><li>Perception. </li></ul><ul><li>Priority. </li></ul><ul><li>Acceptability. </li></ul><ul><li>Risk. </li></ul><ul><li>Resources. </li></ul><ul><li>Goals. </li></ul><ul><li>Values. </li></ul><ul><li>Demands. </li></ul><ul><li>Style. </li></ul><ul><li>Judgment. </li></ul>
  10. 10. Six C's of Decision Making <ul><li>Construct. </li></ul><ul><li>2. Compile. </li></ul><ul><li>3. Collect. </li></ul><ul><li>4. Compare. </li></ul><ul><li>5. Consider. </li></ul><ul><li>6. Commit </li></ul>
  11. 11. Construct a clear picture of precisely what must be decided. Compile a list of requirements that must be met . Collect information on alternatives that meet the requirements
  12. 12. Compare alternatives that meet the requirements. Consider the &quot; what might go wrong &quot; factor with each alternative. Commit to a decision and follow through with it.
  13. 13. The Decision-Making Process Identification of a Problem Identification of Decision Criteria Allocation of Weights to Criteria Development of Alternatives Analysis of Alternatives Selection of an Alternatives Implementation of the Alternatives Evaluation of Decision Effectiveness
  14. 14. Making Decisions: Rationally rational decision-making: Describe choices that are consistent and value maximizing within specified constraints.
  15. 15. Making Decisions: Bounded Rationality bounded rationality decision-making: Behavior that is rational within the parameters of a simplified decision-making process, which is limited (or bounded) by an individual’s ability to process information.
  16. 16. Intuition decision-making: Intuition decision-making: a subconscious process of making decision on the basis of experience and accumulated judgment .
  17. 17. Decision Making Styles
  18. 18. <ul><li>Directive Style </li></ul><ul><li>A decision making style characterized by low tolerance for ambiguity and a rational way of thinking. </li></ul><ul><ul><li>They’re efficient and logical </li></ul></ul><ul><ul><li>Directive types makes fast decisions and focus on </li></ul></ul><ul><ul><li>the short run </li></ul></ul>
  19. 19. <ul><li>Analytical Style </li></ul><ul><li>A decision making style characterized by a high tolerance a high tolerance ambiguity and a rational way of thinking. </li></ul><ul><ul><li>They want more information before making decision and consider more alternatives </li></ul></ul>
  20. 20. <ul><li>Conceptual Style </li></ul><ul><li>A decision making style characterized by a high tolerance for ambiguity and an intuitive way of thinking. </li></ul><ul><ul><li>Very broad in the their outlook and will look at </li></ul></ul><ul><ul><li>many alternatives </li></ul></ul><ul><ul><li>They focus on the long run and very good at </li></ul></ul><ul><ul><li>finding creative solutions to problem </li></ul></ul>
  21. 21. <ul><li>Behavioral Style </li></ul><ul><li>A decision making style characterized by a high tolerance a low tolerance ambiguity and an intuitive way of thinking. </li></ul><ul><ul><li>They’re concerned about the achievements of subordinates and are receptive to suggestion from others </li></ul></ul>
  22. 22. Decision Making Tools Tool to facilitate better decisions: <ul><li>SWOT ANALYSIS </li></ul>
  23. 23. SWOT ANALYSIS T hreats O pportunities W eaknesses S trengths
  24. 24. <ul><li>SWOT analysis is a great technique for identifying your S trengths and W eaknesses and study any O pportunities and T hreats you face. </li></ul><ul><li>It is also a powerful strategic planning tool used to evaluate a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective. </li></ul><ul><li>It involves monitoring the marketing environment internal and external to the organization or individual. </li></ul>
  25. 25. <ul><li>T hreats </li></ul><ul><ul><li>External conditions that are harmful to achieving the objective. </li></ul></ul><ul><li>O pportunities </li></ul><ul><ul><li>External conditions that are helpful to achieving the objective. </li></ul></ul><ul><li>W eaknesses </li></ul><ul><ul><li>Attributes of the organization that are harmful to achieving the objective. </li></ul></ul><ul><li>S trengths </li></ul><ul><ul><li>Attributes of the organization that are helpful to achieving the objective. </li></ul></ul>
  26. 26. <ul><li>T hreats </li></ul><ul><ul><li>How can we D efend against each Threat? </li></ul></ul><ul><li>O pportunities </li></ul><ul><ul><li>How can we E xploit each Opportunity? </li></ul></ul><ul><li>W eaknesses </li></ul><ul><ul><li>How can we S top each Weakness? </li></ul></ul><ul><li>S trengths </li></ul><ul><ul><li>How can we U se each Strength? </li></ul></ul>
  27. 27. Internal Factors  Organization External Factors  External Environment S trengths W eaknesses O pportunities T hreats
  28. 28. SWOT Analysis – Errors to Be Avoided <ul><li>Conducting a SWOT analysis before defining and agreeing upon an objective (a desired end state). SWOTs should not exist in the abstract. They can exist only with reference to an objective. </li></ul><ul><li>Opportunities external to the company are often confused with strengths internal to the company. They should be kept separate. </li></ul><ul><li>SWOTs are sometimes confused with possible strategies. SWOTs are descriptions of conditions, while possible strategies define actions. </li></ul>
  29. 29. Group decision-making
  30. 30. Advantages and Disadvantages of Group-Aided Decision Making Advantages Disadvantages 1. Greater pool of knowledge 2. Different perspectives 3. Greater comprehension 4. Increased acceptance 5. Training ground 1. Social pressure 2. Minority domination 3. Logrolling 4. Goal displacement 5. “Groupthink”
  31. 31. Group Problem Solving Techniques <ul><li>Definition of consensus – . . . reached when all members can say they either agree . . . Or have had their “day in court” and were unable to convince the others of their viewpoint. In the final analysis, everyone agrees to support the outcome </li></ul>
  32. 32. <ul><li>Other approaches to a group decision </li></ul><ul><ul><li>Unanimity </li></ul></ul><ul><ul><li>A minority or one decides </li></ul></ul>
  33. 33. <ul><li>Brainstorming - disciplined process </li></ul><ul><ul><li>Silent idea (optional) </li></ul></ul><ul><ul><li>Ideas/opinions solicited and written on a </li></ul></ul><ul><ul><li>board, disallowing criticisms, allowing </li></ul></ul><ul><ul><li>piggy-backing on ideas, clarification </li></ul></ul><ul><li>Delphi technique is another, more formal </li></ul><ul><li>form of brainstorming. Involves several </li></ul><ul><li>rounds of questionnaire, feedback, etc. </li></ul><ul><li>Useful in cases where participants are not in </li></ul><ul><li>the same place. </li></ul>
  34. 34. <ul><li>Nominal Group Technique – used to narrow down options through voting. </li></ul><ul><li>Computer-aided Decision Making </li></ul><ul><ul><li>Uses computers to manage brainstorming or Delphi questioning </li></ul></ul>
  35. 35. Any Questions?