This document outlines the steps in a group decision making process at a management level. It discusses (1) introducing decision making and identifying group members; (2) examining factors like rational decision making models, barriers to effective decision making, and quantitative/behavioral decision making tools; (3) exploring group decision making formats, their advantages and disadvantages, and tools to improve group decisions. The overall aim is to acquaint students with the decision making process and factors that influence management decisions.

1. Management
Chapter – 6 Decision Making

2. Introduction

3. Aim
 To Acquaint The
Students With Steps
Involved In Decision
Making Process &
Factors Influencing
Decision Making

4. Group Members
 Fawad Hussain
 Rao Qaiser
 Rizwan Shaukat
 Naveed ur Rehman

5. Sequence
 Introduction
 Part – 1 Fundamentals of Decision Making : Fawad Hussain
 Part – 2 Managerial Decision Making: Rao Qaiser
 Part – 3 Rational Decision Making : Rao Qaiser
 Part – 3 Effective Decision Making : Naveed ur Rehman
 Part – 4 Groups and Decision Making : Rizwan Shaukat
 Conclusion
 Questions

6. Part – 1

7. What is Decision Making
 It is the process of recognizing a
problem, generating an weighing
alternatives, coming to a decision,
taking action , and assessing the
results

8. Types of Problems
 Crisis Problems
 Non Crisis Problems
 Opportunity Problems

9. Types of Decisions & Conditions of
Decision Making
 Types of Decisions
 Programmed Decisions
 Nonprogrammed Decisions
 Conditions of Decision Making
 Certainty
 Risk
 Uncertainty
 Ambiguity

10. Level & Scope of Organizational
Decision Making

11. Part – 2

12. Three Managerial Decision Making Model

13. Part – 3

14. Steps In Rational Decision Making
Process
(6) Evaluate
(1) Identify The
The Results
Problem
and Provide
Feed Back
(5) Implement The (2) Generate
Decision Alternatives
(4) Make The (3) Evaluate
Decision Alternatives

15. Part – 4

16. MORE EFFECTIVE DECISION
MAKING
 Barriers to effective decision making.
 Behavioral tools for effective decision
making.
 Quantitative tools for effective decision
making.

17. BARRIER TO EFFECTIVE
DECISION MAKING
 Barriers are the imperfect or incomplete
information, inaccurate identification of
problems or alternatives, biases and over
commitment or under commitment

18.  IMPERFECT OR INCOMPLETE INFORMATION.
Imperfect or incomplete information is to
withholding information or misinforming others.
 INACCURATE IDENTIFICATION OF PROBLEM OR
ALTERNATIVES.
It means When we ask wrong question we can't
get the right answer.

19.  BIASES.
In decision making bias refers to situations in
which decision- making short cuts are
inappropriately applied.
 OVER COMMITMENT OR UNDER COMMITMENT.
It means exhibiting no rational escalation of
commitment.

20. BEHAVIORAL TOOLS FOR EFFECTIVE
DECISION MAKING
 Behavioral tools are the ways in which a person
behaves in a situation.
these tools are:-
 Decision timing.
 Realistic decision constraints.
 Critical thinking.
 Experience and expertise.
 Intuition .

21. BEHAVIORAL TOOLS
 Decision Timing.
It is the time when the decision is to be made by comparing the
benefits and the risks.
 Realistic Decision Constraints.
By understanding constraints one can more realistically select an
appropriate and acceptable solution.
 Critical Thinking Skills.
To improve decision making is to develop critical thinking which
help us think clearly, logically and analytically about the
problems we face.

22. BEHAVIORAL TOOLS
 Experience and Expertise
With decision making experience comes the ability to make
decisions faster managers also need to develop their expertise
in decision making so that they can recognize the key elements
in each problem
 Intuition
It is the ability to understand something immediately without
the need for conscious reasoning. We should be intuitive in
decision making.

23. QUANTITATIVE TOOLS FOR EFFECTIVE
DECISION MAKING
 Quantitative tools are especially valuable when
planning production, analyzing inventory levels and
considering major budget expenditure.
These tools are :-
 Payoff matrix
 Decision tree
 Simulation model

24. QUANTITATIVE TOOLS
 PAYOF MATRIX
A tool that compare probable outcome of two or more
alternatives.
 DECISION TREE
An analytical tool that graphically portrays the logical
series of actions and decisions in a problem situation.
 SIMULATION MODEL
A mathematical representation of problems that reflect
the relationship between the elements and it is used to
project that result of certain actions under various
circumstances.

25. Part – 5

26. GROUPS AND DECISION MAKING
 Decision making is often an individual activity but there are many times when groups
become involved in the process.
 Employee Participation in Decision Making
Manager have a great deal of latitude when deciding to handle decision making alone
or to involve others in the process.
 Group Decision – Making Formats
 Interacting Group.
 Nominal Groups.
 Delphi Groups.
 Impact of group Decision Making
Group decision making has both benefits and limitation as compared with individual
decision making.
 Benefits of Groups Decision
When attacking a problem, group members are able to contribute more knowledge and
information than individuals.

27. Advantages and Disadvantages of Group Decision Making
 Advantages  Disadvantages
 Groups can accumulate more knowledge and  Groups tend to work more slowly and take
facts. more time to reach any decision.
 Groups may have a broader perspective and  To much dependence on group decision making
consider more approaches and alternatives. may limit a manager’s ability to act quickly and
decisively when necessary.
 Individuals who participate in group decision
making are more likely to be satisfied with the  Groups may be dominated by one individual or
decision and to support its implementation. a small sub group.
 The group decision making process serves as  Group effort frequently result in compromises
an important communication devices. that may not be optimal for organizational
effectiveness or performance.

28. Tools for Effective Group Decision Making
 Brain Storming
An informal interactive group technique in which members generate many
alternatives with out passing judgment on their value.
 Devil’s Advocate
A technique in which one or more group members deliberately challenge the group’s
view to the problem, the alternatives, and their evaluation.
 Dialectic process
A technique in which individuals or groups present and defend opposing solution to a
particular problem to drive an improved solution.