The document outlines the decision making process in organizations. It discusses (1) recognizing and defining problems, identifying alternatives, choosing a preferred course of action, implementing it, and evaluating results; (2) programmed vs nonprogrammed and major vs minor decisions; (3) conditions that can lead to decision failure like risk, uncertainty, and ambiguity; (4) rational perspectives on decision making; (5) the six step managerial decision making process of recognizing a need, generating alternatives, evaluating them, choosing, implementing, and learning from feedback. It also covers individual, group, organizational and metaorganizational decision making as well as methods for group decision making.

1. Decision Making Process
Unit II

2. Decision making.
– The process of choosing a course of action for
dealing with a problem or opportunity.
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3. How are decisions made
in organizations?
 Steps in systematic decision making.
– Recognize and define the problem or opportunity.
– Identify and analyze alternative courses of action, and
estimate their effects on the problem or opportunity.
– Choose a preferred course of action.
– Implement the preferred course of action.
– Evaluate the results and follow up as necessary.
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4. Decision-Making Conditions
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5. Types of Decisions.
1. Programmed Vs Nonprogrammed decisions
– Programmed decisions.
• Involve routine problems that arise regularly and can be addressed through
standard responses.
– Nonprogrammed decisions.
• Involve nonroutine problems that require solutions specifically tailored to
the situation at hand
2. Major Vs Minor decisions
3. Individual Vs Group decisions
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6. Conditions that Affect the Possibility of
Decision Failure
Organizational
Problem
Low Possibility of Failure High
Certainty Risk Uncertainty Ambiguity
Programmed Nonprogrammed
Decisions Decisions
Problem
Solution
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7. 1. Rational Perspectives on
Decision Making
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8. Six Steps in the Managerial
Decision Making Process
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9. Decision Making Steps
Step 1. Recognize Need for a Decision
– Sparked by an event such as environment changes.
• Managers must first realize that a decision must be made.
Step 2. Generate Alternatives
– Managers must develop feasible alternative courses of
action.
• If good alternatives are missed, the resulting decision is poor.
• It is hard to develop creative alternatives, so managers need to
look for new ideas.
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10. Decision Making Steps
Step 3. Evaluate Alternatives
– What are the advantages and disadvantages
of each alternative?
– Managers should specify criteria, then
evaluate.
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11. Decision Making Steps
Step 3. Evaluate alternatives
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12. Decision Making Steps
Step 4. Choose Among Alternatives
– Rank the various alternatives and make a decision
– Managers must be sure all the information
available is brought to bear on the problem or
issue at hand
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13. Decision Making Steps
Step 5. Implement Chosen Alternative
– Managers must now carry out the alternative.
– Often a decision is made and not implemented.
Step 6. Learn From Feedback
– Managers should consider what went right and wrong
with the decision and learn for the future.
– Without feedback, managers do not learn from
experience and will repeat the same mistake over.
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14. The Administrative Model of
Decision Making
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15. The Scope of Decision Making
1. Individual decision making
2. Group decision making
3. Organizational decision making
4. Metaorganizational decision
making
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16. Advantages and Disadvantages of
Group and Team Decision Making
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17. Methods of Group Decision Making
• Nominal Group Technique
– Members silently and individually generate ideas
– They present without discussion
– Discussion and clarification
– Silently rate
– Group decision is the pooled outcome of votes
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