A nutshell of various methods for making a decision

1. Dr. Shammy Rajan 6463

2. ARE YOU A
DECISION MAKER?

3. What should I
have for dinner?

4. ARE YOU A
DECISION MAKER?
GOOD

5. What should I wear
to class today?

7. Problem
An obstacle that makes it difficult to
achieve a desired goal or purpose.

8. DECISION
A choice among 2 or more
alternatives.

9. 8 steps of decision making

10. Identifying a Problem
Identifying decision criteria
Allocating Weights to the Criteria
Developing Alternatives
Analyzing Alternatives
Selecting an Alternative
Implementing the Alternative
Evaluating Decision Effectiveness

11. MANAGERS MAKING
DECISIONS

12. Leading

13. MAKING DECISIONS: RATIONALITY
• Rational decision making
• Assumption of rationality

14. MAKING DECISIONS: BOUNDED
RATIONALITY
• Satisfice than maximize
• Escalation of commitment

15. MAKING DECISIONS:
THE ROLE OF INTUITION

16. MAKING DECISIONS:
THE ROLE OF EBMgt
• Evidence Based Management

17. TYPES OF DECISIONS

18. STRUCTURED PROBLEM, PROGRAMMED
DECISION
• Procedure
• Rule
• Policy

19. UNSTRUCTURED PROBLEM,
NON-PROGRAMMED DECISION

21. DECISION MAKING CONDITIONS
• CERTAINITY
• RISK
• UNCERTAINITY

22. DECISION MAKING STYLES
• LINEARTHINKING STYLE
• NON LINEAR THINKING STLE

23. DECISION TABLE

24. DECISION TABLE- 2

25. GROUP DECISION MAKING

26. FACTORS REQUIRING GROUP DECISION
• Involving sensitive issues
• High cost alternatives
• Involving very high risk factor
• Strategic impact

27. GROUP DECISION- ADVANTAGES
• Acceptance of group members
• Co- ordination is easier
• Communication is easier
• Existence of large alternatives
• More information can be processed
• Diversity of experience and perspectives

28. GROUP DECISION- DISADVANTAGES
• Take longer time
• Group can be indecisive
• Group can compromise
• Group can be dominated
• Group can “play games”
• Victim to Groupthink- group members
overlook other available alternatives for the
sake of complete consensus

29. HOW TO IMPROVE GROUP DECISION MAKING
• Brainstorming
• Delphi technique

30. Contd:-
• Nominal Group Technique (NTG)

31. STRATEGIC DECISIONS
• Complex
• Based on Mission, Vision and Goal
• Taken at the top most level
• Involves change of a major kind

33. DECISION MAKING- ERRORS ANDBIASES

34. EFFECTIVE DECISION MAKING
• Understand cultural differences
• Know when it’s time to call it quits
• Use an effective decision making process
• Build an organization that can spot the
unexpected and quickly adapt to the changed
environment

36. References:
1. Robbins SP, Coulter. Management. Boston:
Prentice Hall; 2012.
2. https://en.wikipedia.org