This document outlines the seven steps of the decision making process: 1) identifying the problem, 2) identifying decision criteria, 3) allocating weights to criteria based on importance, 4) developing alternatives, 5) analyzing alternatives' strengths and weaknesses against criteria, 6) selecting an alternative, and 7) implementing the chosen alternative by gaining commitment from those responsible. The process aims to make well-informed decisions by thoroughly evaluating problems, criteria, alternatives, and consequences.

1. Principle of management
Decision Making

3. • IDENTIFYING THE PROBLEMIDENTIFYING THE PROBLEM
• IDENTIFYING THE DECISION CRITERIAIDENTIFYING THE DECISION CRITERIA
• ALLOCATING THE WEIGHT TO CRITERIAALLOCATING THE WEIGHT TO CRITERIA
• DEVELOPING ALTERNATIVESDEVELOPING ALTERNATIVES
• ANALYZING ALTERNATIVEANALYZING ALTERNATIVE
• SELECTING AN ALTERNATIVESELECTING AN ALTERNATIVE
• IMPLEMENTING THE ALTERNATIVEIMPLEMENTING THE ALTERNATIVE
• EVALUATING THE DECISIONS EFFECTIVENESSEVALUATING THE DECISIONS EFFECTIVENESS
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

5. Step 3: Allocating Weights to the Criteria
• Decision criteria are not of equal importance:
 Assigning a weight to each item places the items in the correct
priority order of their importance in the decision-making process.

6. Step 5: Analyzing AlternativesStep 5: Analyzing Alternatives
• Appraising each alternative’s strengths and weaknesses
 An alternative’s appraisal is based on its ability to resolve the
issues identified in steps 2 and 3.

7. Step 7: Implementing the AlternativeStep 7: Implementing the Alternative
• Putting the chosen alternative into action.
 Conveying the decision to and gaining commitment from those
who will carry out the decision.

9. DECISIONS IN THE MANAGEMENTDECISIONS IN THE MANAGEMENT
FUNCTIONSFUNCTIONS

17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice HallCopyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall
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