3. PROBLEM SOLVING AND DECISION
MAKING
In some situations decision making and problem
solving start out alike but may lead to different
paths
4. Decision making process consists of certain steps
• Identify the problem
• Identify decision criteria
• Importance of the criteria
• Develop alternatives
• Analyze the alternatives
• Select alternatives
• Implement alternatives
• Evaluate decision effectiveness
5. ELEMENTS OF DECISION MAKING
Information
Goals
Alternative
Actions
Action
outcome
possibilities
Values of
outcomes
Choice of one
alternative
6. RISK
• Under a condition of risk, the decision maker don’t know the
uncertainty what the outcomes of a given action will be but
has enough information to estimate the probabilities of
various putcomes.
7. UNCERTAINTY
The decision maker who lacks enough
information to estimate the probability of
outcomes faces a condition of uncertainty
8. The rational decision-making approach is a systematic, step
by step process for making decisions.
The behavioral approach, meanwhile, attempts to
account for the limits on rationality in decision
making.
9. Problems in Site-Based Decision-making
• Groupthink:
• It happens when in-group pressure lead to the downfall
in mental efficiency, poor testing of reality and lax moral
judgments
11. Risky Shift:
Problem solving in groups always involves some
degree of risk. One can never be certain whether a
decision made in a group would be the same as a
decision made by an individual.
12. Escalation of Commitment
• This phenomenon deals with the tendency of groups to
escalate commitment to a course of action in order to justify
their original decision.
13. For example, a board of education makes a decision
to renew a high school building rather than build a
new one. As the project progresses, The board soon
becomes aware of that the renewal will cost
considerably more money than it would cost to build
an entirely new structure.
