2. DECISION MAKING
PROCESS
1. Identifying a problem
2. Identifying Decision Criteria
3. Allocating Weights to the Criteria
4. Identifying Alternatives
5. Analyzing Alternatives
6. Selecting an Alternatives
7. Implementing the Alternatives
8. Evaluating Decision Effectiveness
3. TYPES OF PROBLEMS AND
DECISIONS
Three perspective on how decisions are made:
1. Rational decision making
2. Bounded rationality
3. Intuitive decision making
Please refer to exhibit 7-6 on page 184
4. TYPES OF PROBLEMS AND
DECISIONS
1. Structured Problems and Programmed
Decisions
There are 3 types of programmed
decisions:
1. Procedure
2. Rule
3. Policy
2. Unstructured Problems and
Nonprogrammed Decisions
5. Please refer to exhibit 7-7 on page 187 for the
relationship among problem, decision and
organizational levels.
TYPES OF PROBLEMS AND
DECISIONS