The document discusses managerial decision making and problem solving. It covers several topics: 1) The types of decisions are programmed and non-programmed decisions. Programmed decisions follow rules while non-programmed decisions are unique situations. 2) There are six steps to the decision making process: identifying problems, gathering information, developing alternatives, evaluating alternatives, selecting an alternative, and implementing and monitoring the decision. 3) Decision support systems are tools to aid decision making, especially for non-programmed decisions. Different models in decision support systems are discussed.

1. Managerial Decision making & Problem Solving Kamlesh Ghag

2. This session includes.. Why Decision making is needed? Types of Decision making ? How to select a model ? 6 steps is Decision making process. Different models in Decision making and in Decision Support System. Kamlesh Ghag

3. Decision Making.. Needed for any organization to reach its objectives and goals. Is the element of Problem solving. Requires strategic planning and decision analysis. Kamlesh Ghag

4. Decision making the process of identifying problems and opportunities, then resolving them. Kamlesh Ghag

5. Decision - Types Programmed And Non – programmed Kamlesh Ghag

6. Programmed Made using a rule, procedure or quantitative method e.g. fixed sitting arrangement Are easy to computerized MIS are used to solve Programmed Decision Kamlesh Ghag

7. Non-programmed Unstructured or ill-structured Deal with unusual/exceptional situation Difficult to quantify Rules, procedures are not so obvious Decision Support system are used to solve the Non-programmed Decision. e.g. whether to start a new product line Kamlesh Ghag

8. Programmed decisions : # situations that occur often enough to enable decision rules to be developed . Nonprogrammed decisions : # are made in response to situations that are unique, are poorly defined and largely unstructured. # many involve strategic planning. Therefore… Kamlesh Ghag

9. Selecting a Decision Making Model Depends on the manager’s personal preference. Whether the decision is programmed or non-programmed. Extent to which the decision is characterized by risk, uncertainty, or ambiguity. Kamlesh Ghag

10. Six Steps in the Managerial Decision Making Process Kamlesh Ghag

11. Models of Decision Making Kamlesh Ghag

12. Hertbert Simon Model Intelligence Phase - Information gathered that relates to the cause and scope of problem - Potential problems or opportunities are identified and defined Kamlesh Ghag

13. Design Phase - Developing the alternative solution - Evaluating the feasibility of the alternatives Kamlesh Ghag

14. Choice Phase - Requires selecting a course of action Kamlesh Ghag

15. Hertbert Simon Model Kamlesh Ghag Intelligence Design Choice Hertbert Simon Model for Decision Making

16. George Huber Model for Problem Solving Problem solving includes Decision making and goes beyond that. Expansion of Decision Making model Includes - Implementation and Monitoring Phase Kamlesh Ghag

17. Implementation Phase - when the solution is put into effect Monitoring Phase - Evaluate the implementation - involves feedback and adjustment Kamlesh Ghag

18. George Huber Model Kamlesh Ghag Intelligence Design Choice Implementation Monitoring George Huber expanded model for Problem solving

19. Decision Support System An organized collection of people, procedures, software, databases and devices used to support problem-specific decision making. Kamlesh Ghag

20. DSS – 3 models Optimization Model - offers the best solution - to help the organization meets its goals - utilize problem constraint - reduce the time and cost to increase the profits Kamlesh Ghag

21. Kamlesh Ghag Satisficing Model - When the decision would be difficult, complex, or costly. - good alternative modeling method ( to analyze each alternative is too expensive) - looks only at those likely to give good results

22. Heuristic approach Defined guidelines or Procedures Also said as “rules of thumb” Kamlesh Ghag

23. Questions from your side.. Thank you. Kamlesh Ghag