Decision making, Importance of
Decision-Making, Characteristics of
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Decision-Making, Types/ categories of Problems and Decisions, TYPES OF BUSINESS DECISIONS, Open decision making System, Decision Making Environment, The Classical Model of decision making, Decision making process, Decision Making Style
Decision Making remains one enigma for managers. Although no prescription can be offered for mastering this technique yet these fillers will certainly improve your skill
what is decision making, conditions of decision making, decision making under certainty, decision making under uncertainty, decision making under risk, process of decision making, how to effactive decision making
Decision Making remains one enigma for managers. Although no prescription can be offered for mastering this technique yet these fillers will certainly improve your skill
what is decision making, conditions of decision making, decision making under certainty, decision making under uncertainty, decision making under risk, process of decision making, how to effactive decision making
Short presentation on Decision making.
Decision making variables, Types of managerial decision, Decision making process and Techniques for Stimulating Creativity
ReadySetPresent (Decision Making PowerPoint Presentation Content): 100+ PowerPoint presentation content slides. Successful and effective strategic decision making is a guarantee to increase productivity in every workplace. Decision Making PowerPoint Presentation Content slides include topics such as: the 6 C’s of decision making, inherent personal and system traps, 10+ slides on decision trees, 10+ slides on decision making methods and tips, 4 slides on the GOR approach to decision making, 8 slides on common pitfalls in decision making, 4 slides on effective strategies in making decisions, 35+ slides on the 8 major decision making traps and how to effectively minimize each, 7 slides on different decision making perspectives, 25 slides on the 3 different types of analysis (grid analysis – paired comparison analysis, and cost/benefit analysis), 4 slides on utilizing planning and overarching questions, 4 modes of decision making and 6 factors in decision making and more!
Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.
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Decision Making: Decision Making Process, Stages in Decision Making, Individu...Ashish Hande
Decision Making: Decision Making Process, Stages in
Decision Making, Individual and Organizational Decision
Making, Decision Making Models, Information System
support for Decision Making Phases
Decision Making PowerPoint PPT Content Modern SampleAndrew Schwartz
164 slides include: the 6 C's of decision making, inherent personal and system traps, decision trees, decision making methods and tips, 4 slides on the GOR approach to decision making, common pitfalls in decision making, effective strategies in making decisions, the 8 major decision making traps and how to effectively minimize each, different decision making perspectives, 3 different types of analysis (grid analysis - paired comparison analysis, and cost/benefit analysis), utilizing planning and overarching questions, 4 modes of decision making and 6 factors in decision making plus more.
The presentation is about decision making process, its a management subject, and after reading this the person will be able make better decision during daily life and or in office,
all factors of decision making is available in this presentation such as definition, advantages, disadvantages, WH questions, 6 c's and etc
Short presentation on Decision making.
Decision making variables, Types of managerial decision, Decision making process and Techniques for Stimulating Creativity
ReadySetPresent (Decision Making PowerPoint Presentation Content): 100+ PowerPoint presentation content slides. Successful and effective strategic decision making is a guarantee to increase productivity in every workplace. Decision Making PowerPoint Presentation Content slides include topics such as: the 6 C’s of decision making, inherent personal and system traps, 10+ slides on decision trees, 10+ slides on decision making methods and tips, 4 slides on the GOR approach to decision making, 8 slides on common pitfalls in decision making, 4 slides on effective strategies in making decisions, 35+ slides on the 8 major decision making traps and how to effectively minimize each, 7 slides on different decision making perspectives, 25 slides on the 3 different types of analysis (grid analysis – paired comparison analysis, and cost/benefit analysis), 4 slides on utilizing planning and overarching questions, 4 modes of decision making and 6 factors in decision making and more!
Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.
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Decision Making: Decision Making Process, Stages in Decision Making, Individu...Ashish Hande
Decision Making: Decision Making Process, Stages in
Decision Making, Individual and Organizational Decision
Making, Decision Making Models, Information System
support for Decision Making Phases
Decision Making PowerPoint PPT Content Modern SampleAndrew Schwartz
164 slides include: the 6 C's of decision making, inherent personal and system traps, decision trees, decision making methods and tips, 4 slides on the GOR approach to decision making, common pitfalls in decision making, effective strategies in making decisions, the 8 major decision making traps and how to effectively minimize each, different decision making perspectives, 3 different types of analysis (grid analysis - paired comparison analysis, and cost/benefit analysis), utilizing planning and overarching questions, 4 modes of decision making and 6 factors in decision making plus more.
The presentation is about decision making process, its a management subject, and after reading this the person will be able make better decision during daily life and or in office,
all factors of decision making is available in this presentation such as definition, advantages, disadvantages, WH questions, 6 c's and etc
OBJECTIVES OF TEACHING SCIENCE
Education is a process of bringing about changes in an individual in a desired direction. It is a process of helping a child to develop his potentialities to the maximum and to bring out the best from within the child. To bring about these changes we teach them various subjects at different levels of school. Science as subject is included in the school curriculum from the very beginning.
Before taking any decision about teaching science we should pose certain questions to ourselves, such as,
• Why do we teach them science?
• What are the goals and objectives of teaching science?
• What changes does science teaching bring about in the behaviour of the students?
Gender refers to the roles and responsibilities of men and women that are created in our families, our societies and our cultures. The concept of gender also includes the expectations held about the characteristics, aptitudes and likely behaviours of both women and men (femininity and masculinity). Gender roles and expectations are learned. They can change over time and they vary within and between cultures. Systems of social differentiation such as political status, class, ethnicity, physical and mental disability, age and more, modify gender roles. The concept of gender is vital because, applied to social analysis, it reveals how women’s subordination (or men’s domination) is socially constructed. As such, the subordination can be changed or ended. It is not biologically predetermined nor is it fixed forever.
Activities During Software Project Management, Process For Successful Projects, categories of functional units, Counting function points, Computing function points
Measure, Metrics, Indicators, Metrics of Process Improvement, Statistical Software Process Improvement, Metrics of Project Management, Metrics of the Software Product, 12 Steps to Useful Software Metrics
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Contents Different Managerial Functions, Definition & Meaning of Management, Planning process, functions of organization, factors affecting on staffing, Managers & Managerial Skills, Role & Responsibilities of Manager, Skills needed at various levels of Management
MCM,MCA,MSc, MMM, MPhil, PhD (Computer Applications)
Working as Associate Professor at Zeal Education Society, Pune for MCA Progrmme.
Having 18 Years teaching experience
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
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2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
2. Decision & Decision making
Decision - choice made from available alternatives
Decision Making - process of identifying problems
and opportunities and resolving them
Williams: It is a process of choosing a course of
actions from two or more alternatives.
Bartol and Martin: The process through which
managers identify organizational problems and
attempt to resolve them.
Stoner and Wankel: The process by which a course
of action is selected as the way to deal with a
specific problem
3. Importance & Characteristics of
Decision-Making
• It is prerequisite for every managerial functions.
• It involves problem finding and problem solving using
available alternatives.
• It a process of selecting the course of action to solve the
problem
• It is situational- certainty, uncertainty, risk.
• It is dynamic process
• It is a mental process because the final selection is made
after thoughtful consideration.
• Aimed at achieving the objectives of the org.
4. Essentials for effective
Decision-Making
1. Accuracy
2. Environment for decision
3. Timely decision
4. Communication of decision
5. Participative decision-making
6. Implementation of decision
5. Difficulties in Decision-making
1. Incomplete Information
2. Un-supporting environment
3. Non-acceptance by subordinates
4. Ineffective Communication
5. Incorrect timing
6. Types/ categories of Problems and Decisions
Structured problems
Involved clear goals and are familiar or have occurred before.
Information about problem is available & complete.
Programmed decision
A repetitive decision that can be handled by a routine approach.
Managers have made decision many times before
Example: Deciding to reorder office supplies
Unstructured problems
Problems that are new or unusual and for which information is incomplete.
Problems that will require custom-made solutions.
Non-programmed decisions
Decision that are unique and nonrecurring.
No rules to follow since the decision is new
These decisions are made based on information, and a manger’s judgment.
Example: Should the firm invest in a new technology?
7. TYPES OF BUSINESS DECISIONS
• Programmed Decisions
• Non-Programmed
Decisions
• Strategic Decisions
• Tactical Decisions
• Operational Decisions
8. Programmed vs. Non-programmed Decisions
Characteristics Programmed Non-programmed
Also called Structured decision Unstructured
Type of problem Structured, routine,
well defined
Unstructured, novel,
ill defined
Managerial level Lower level Upper level
Frequency of
problem
Repetitive New, unusual
Information Readily available Ambiguous or
incomplete
Time frame for
solution
Short Relatively long
Judgment Objective Subjective
Solution relies on Procedures, rules, and
policies
Managerial Judgment
and creativity
9. METHODS OF DECISION MAKING
Decision made by authority without group discussion
Decision by expert team
Decision by averaging individuals
Decision made by authority after group discussion
Decision by minority or by majority vote
Decision by compromise
10. Types of systems based on the manager’s knowledge about
the environment.
1.Closed decision making System: If the manager operates in a
known environment then it is a closed decision making system.
The conditions of the closed decision making system are:
a)The manager has a known set of decision alternatives and
knows their outcomes fully in terms of value, if implemented.
b)The manager has a model, a method or a rule whereby the
decision alternatives can be generated, tested, and ranked.
The manager can choose one of them, based on some goal or objective
A few examples are:
1. Product mix problem,
2. an examination system to declare pass or fail, or
3. an acceptance of the fixed deposits.
11. 2. Open decision making System
If the manager operates in an environment not known to
him, then the decision making system is termed as an ODMS.
The conditions of this system are:
a) The manager does not know all the decision alternatives
b) The outcome of the decision is also not known fully. The
knowledge of the outcome may be a probabilistic one.
c) No method, rule or model is available to study and
finalize one decision among the set of decision
alternatives.
d) It is difficult to decide an objective or a goal and,
therefore, the manager resorts to that decision, where his
aspirations or desires are met best.
12.
13. DECISION MAKING UNDER CERTANITY
• Outcome of all alternative are fixed and fully
known to Manager then this is called Decision
making under certainty
• It is very difficult to find complete certainty in
most of the business decisions.
• in many routine type of decisions, almost
complete certainty can be noticed.
• Ex: New carpet for a office.
14.
15. • The decision maker is not in a position, even to
assign the probabilities of happening of the events.
• In the environment of uncertainty, more than one
type of event can take place and the decision maker
is completely in dark regarding the event that is
likely to take place.
• Such situations generally arise in cases where
happening of the event is determined by external
factors and information about alternatives and future
events is incomplete
• For example, demand for the product, moves of
competitors, etc. are the factors that involve
uncertainty.
16. DECISION MAKING UNDER RISK
• Here more then one state of nature exists and the
decision maker has sufficient information to assign
probabilities to each of this states.
• These probabilities could be obtained from the past
records/ experience and simply the subjective judgment
of the decision maker.
• Under condition of risk, knowing the probability
distribution of the state of nature, the best decision is to
select the course of action which has the largest
expected pay off value.
• Under the condition of risk, there are more than one
possible events that can take place.
• The decision maker has adequate information to assign
probability to the happening or non- happening of each
possible event.
17. Decisions helps to manage four types of risk:
1. Envisioning risk: The risk of solving the wrong problem
2. Ideation risk: the risk of not developing good alternative
3. Evaluation risk: The risk of choosing a poor alternative
4. Strategic risk: The risk of not following a beneficial strategy
18. 18
Parameters for Selecting a
Decision Making Model
1. Depends on the manager’s personal
preference
2. Whether the decision is programmed or non-
programmed
3. Extent to which the decision is characterized
by risk, uncertainty, or ambiguity
19. The Classical Model of decision making
• This is the earliest model of decision making developed as per
organization’s best economic interests.
• They believed that man is completely rational in his decisions,
he always selects that alternative which gives him the greatest
advantage.
• This perspective model tells how the decision should be made.
– Assumes managers have access to all the information needed
to reach a decision.
– Managers can then make the optimum decision by easily
ranking their own preferences among alternatives.
• Unfortunately, mangers often do not have all required information
• Approach assumes that managers are logical and rational.
• Approach assumes that managers’ decisions will be in the best
interests of the organization.
20. The Classical Model
Rank each alternative
from low to high
Select best
alternative
List alternatives
& consequences Assumes all information
is available to manager
Assumes manager can
process information
Assumes manager knows
the best future course of
the organization
21. Administrative Model of decision making
Is Descriptive model describes how non-programmed
decisions are made in uncertainty/ambiguity situation.
This model Challenges the classical assumptions that managers
have information about all process.
Herbert A Simon, a Nobel Prize winner in Economics,
developed the model to describe how decisions are often made
rather than to prescribe how they should be made
Argues that decision makers have incomplete and imperfect
information, are constrained by ‘bounded rationality’ and tend
to ‘satisfiec’ when making decisions.
Bounded rationality suggests that decision makers are limited
by their values and unconscious response, skills and habits.
22. • Satisficing is the tendency to search for alternatives
only until one is found that meets some minimum
standard of sufficiency.
• Rather than conducting an exhaustive search for the
best possible alternative, decision makers tend to
search only until they identify an alternative that
meets some minimum standard of sufficiency.
• The Administrative Model can be used by managers
to develop a better understanding of their inherent
biases and limitations
24. Step 1: Identifying the Problem
Problem: A discrepancy between an existing and desired state of affairs.
Characteristics of Problems
• A problem becomes a problem when a manager becomes aware of
it.
• there is a pressure to solve the problem.
• the manager must have the authority, information, or resources
needed to solve the problem.
Step 2: Identify the Decision Criteria
Decision criteria are factors that are important or relevant to resolving
the problem.
• Costs that will be incurred (investment required).
• Risks likely to be encountered ( chance of failure).
• Outcomes that are desired ( growth of the firm).
Decision making process
25. 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.
Step 4: Developing Alternatives
• Identifying available alternatives.
* Alternatives are listed that can resolve the problem.
Step 5 : Analyzing alternatives
• Appraisi g ea h alter ati e’s stre gths a d eak esses
* A alter ati e’s appraisal is ased o its a ility to resol e the issues
identified in step 2 and step 3.
26. Step 6: Selecting the alternative
Choosing the best alternative
* The alternative with the highest total weight is chosen.
Step 7: Implementing the Alternative
Putting the decision to and gaining comment from those whose will
carry out the decision.
Step 8: Evaluating the decision’s effectiveness
The soundness of the decision is judged by its outcomes.
* How effectively was the problem resolved by outcomes resulting
from the chosen alternatives?
* if the problem was not resolve, what went wrong?
27. The decision making process-Example
Memory and Storage, Display Quality,
Better Life,Warranty, Carrying weight
Memory and Storage-10, Display
Quality -8, Better Life -6,Warranty -4,
Carrying weight-3
Toshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo, Dell
Toshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo, Dell
Identification of a problem
Identification of Decision Criteria
Allocation of weights to criteria
Development of alternatives
Analyzing of alternatives
Selection of alternatives
Implementation of alternatives
Evaluation of decision alternatives
“My sales Reps need new computers!”
Toshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo, Dell
“ Toshiba!”
28. Also called Collective participative decision making
style. Democratic decision making is when the leader
gives up ownership and control of a decision and allows
the group to vote. Majority vote will decide the action.
Advantages include a fairly fast decision, and a certain
amount of group participation. The disadvantage of this
style includes no responsibility. An individual is not
responsible for the outcome. In fact, even the group
feels no real responsibility because some members will
say, "I didn't vote for that.". Lack of group and personal
responsibility seems to disqualify this style of decision
making; however, the democratic style does have its
place in business.
Decision Making Style
29. Autocratic decision making is when the leader maintains total
control and ownership of the decision. The leader is also
completely responsible for the good or bad outcome as a result
of the decision. The leader does not ask for any suggestions or
ideas from outside sources and decides from his or her own
internal information and perception of the situation. Advantages
include a very fast decision, and personal responsibility by the
leader, for the outcome. If an emergency situation exists, the
autocratic style is usually the best choice. The disadvantages
are varied and sometimes include less than desired effort from
the people that must carry out the decision. If the employee is
personally affected by the decision but not included when the
decision is made, morale and effort may or may not suffer. It is
not always predictable. If the outcome for the decision is not
positive, members of the organization begin to feel they could
have done a better job themselves and the leader may lose
credibility.
30. Collective - Participative decision making is when the leader
involves the members of the organization. Other perspectives of
the situation are discovered because the leader deliberately asks
and encourages others to participate by giving their ideas,
perceptions, knowledge, and information concerning the decision.
The leader maintains total control of the decision because,
although outside information is considered, the leader alone
decides. The leader is also completely responsible for the good or
bad outcome as a result of the decision. The advantages include
some group participation and involvement. This is especially
valuable when a person is affected negatively by the decision. In
most cases, the individual is informed before the decision is
implemented (no surprises) and usually feels good about personal
involvement. If the leader is a good communicator, and listens
carefully to the information collected, he or she will usually have a
more accurate understanding of the situation and make a better
decision. The disadvantages of this style include a fairly slow, time
consuming decision; less security, because so many people are
involved in the decision.
31. Consensus decision making is when the leader gives up total
control of the decision. The complete group is totally involved in
the decision. The leader is not individually responsible for the
outcome. The complete organization or group is now
responsible for the outcome. This is not a democratic style
because everyone must agree and "buy in" on the decision. If
total commitment and agreement by everyone is not obtained
the decision becomes democratic. The advantages include
group commitment and responsibility for the outcome.
Teamwork and good security is also created because everyone
has a stake in the success of the decision. A more accurate
decision is usually made, with a higher probability of success,
because so many ideas, perspectives, skills and "brains" were
involved in the creation. The disadvantages include a very slow
and extremely time consuming decision. It is also a lot of work
getting everyone in the organization involved. It takes skill and
practice for a group to learn how to work together.
32. Decision Making Techniques
1. Payoff matrix: Decision analysis tool that summarizes pros and
cons of a decision in a tabular form.
When all the alternatives and their outcomes are firmly not
known in such cases decisions are made with the help of payoff
analysis. In Payoff matrix Column shows condition & Row shows
alternatives. Payoff matrix provides quantitative measures to
decision makers called expected value(EV). This method is highly
relied on decision makers judgment
33. 2. Decision Trees
• Decision trees used for showing sequential decisions
• A decision tree is a graphic display of the decision process
that indicates decision alternatives, states of nature and
their respective probabilities, and payoffs for each
combination of decision alternative and state of nature
Steps:
1. Define the problem
2. Draw the decision tree with nodes & branches
3. Assign probabilities to the states of nature
4. Estimate payoffs for each possible combination of
decision alternatives and states of nature
34. Decision Tree Example
Favorable market
Unfavorable market
Favorable market
Unfavorable market
Construct
small plant
A decision node A state of nature node
Symbols used in a decision tree:
a. —decision node from which one of several alternatives may be selected
b. —a state-of-nature node out of which one state of nature will occur
35. 3. Decision Table
This is very much precise in nature and helps analyst to take into
account various options, conditions, variables and alternatives.
Conditions and alternatives are presented with the help of table
36. 4. Decision rules
• These are generally used in programmable or
operating decisions in economical and
efficient manner.
37. 5. Linear Programming
• This technique is used to select optimum solution among all feasible
solutions.
• It is used to identify profit maximization and cost minimization situation
among existing one.
• It involves making an optimum allocation of limited resources of an
organization to achieve a particular objective.
6. Queuing theory / Waiting – line method
• This is and OR method that uses the mathematical technique for balancing
services provided and waiting lines. Waiting lines occur when the demand
for the service exceeds the service facilities. as a perfect balancing between
demand and supply can be achieved, customer have to wait for the service
(demand exceed) or there may be no customers for the organization to serve
(excess supply).
• If the queue is long, customer has to wait for long duration, causing
frustration, the firm may loose the customer and on the other hand it is not
feasible for the firm to maintain facilities to provide quick service all the
time since the cost of idle service facilities have to borne by the company.
Therefore the company has to strike a balance between the both. The
queuing technique helps to optimize the customer service on the basis of
quantitative criteria. It provides information for decision making but does
not resolve the problem.
38. Types of Decisions
1. Programmed and Non-Programmed Decisions:
2. Major and Minor decisions
3. Routine and Strategic Decisions
4. Policy and operative decisions
5. Organizational and Personal decisions.
6. Individual and Group Decisions
7. Long-term and short-term decisions
8. Departmental decisions
9. Non-economic decisions: relate to values, moral behavior, etc.
10. Crisis and research Decisions: Crisis decisions are those which are made to
meet unanticipated situations. Mostly made immediately under pressure
of the circumstances. Research Decisions are made after thorough analysis
without any pressure.
11. Initiative and forced Decisions
12. Problem and opportunity Decisions: problem decisions= resolving
pro le situatio s hi h ha e arise as a ti ipated or ot…,
opportunity decisions= pertain to taking advantage of an
opportu ity…so eti es i ol es risk.
40. Criteria of Decision making
a. Optimistic Decisions: The DM think optimistically about the
event that influence decisions. They choose the alternative that
maximizes the outcome
b. Pessimistic Decisions: They believe that worst possible outcome
will occur no matter what they do. They estimate the worst
outcomes associated with each alternative and select the best of
these worst outcomes.
c. Realistic Decisions: They take the middle path neither optimistic
nor pessimistic.
d. Regret minimizing Decisions: They want to minimize the conflict
they experience after the fact.
e. Insufficient Reason Decisions: These are also called eqi-
probable decision maker. They assume that all the possible
outcomes have equal chance of occurring.
41. Herbert Simon model: Decision Making
Decision making is a process which the decision maker uses to
arrive at a decision. Simon considered each managerial action as
decision making. He describes the process of decision making as
comprising four steps: Intelligence, Design, Choice & Review
42.
43. Decision making Phases
• Herbert A. Si o ’s four basic phases:
– Intelligence stage: includes collection, classification,
processing & presentation of data related to the
organization & its environment. This is necessary to
identify situations calling for a Decision.
– Design stage: inventing, developing, and analyzing possible
course of actions. And examined for technological,
behavioral & economic feasibility
– Choice stage: Selecting a optimal course of action from
those available.
– Review stage: Assessing past choices and do necessary
changes if any.
44. Rational decision making model
• Manager is totally rational about the decision making.
• They have all the relevant information needed to take decisions.
• They are aware of the possibilities of the different alternative course
of actions and there outcomes
Significance of rational decision – making
• Manager who use a rational, intelligent, systematic approach are
more likely to come up with high quality solutions to the problem
they face.
• They have clear understanding of the alternative course of action to
accomplish the goal under particular situation.
• It is based on the information available and their ability to evaluate
the alternatives.
• Aim is to select the best alternative course which help to achieve the
goal.
45. Steps in the Rational decision making model
1. Recognize the need for decision
2. Diagnose the problem
3. Developing alternative
4. Selecting alternative
5. Implementing alternatives
6. Exercising control & follow-up.
46. Disadvantage
• It is difficult for manager to be completely rational
in decision making by taking future into
consideration, as future is uncertain.
• It is very difficult to determine all the alternative
course of actions.
• It is impossible to be completely rational when the
manager wants to venture into a new area.
• Evaluation of each of the alternative becomes
difficult.
• Ma ager a ’t e o pletely ratio al due to
limitation of information, time and certainty.
47. Bounded Rationality
• Co eptualized y Her ert Si o i early 96 ’s
– He won the Nobel prize
• People try to behave rationally within the limits of their
information processing capabilities and within the context
of their attitudes and emotions
– they engage in restricted searches for information;
– have limited information processing capabilities
– rely on familiar sources of information
• biases and heuristics
• construct simplified models of reality
48.
49. Simon’s definition...
The capacity of the human mind for
formulating and solving complex problems is
very small compared with the size of the
problems whose solution is required for
objectively rational behavior in the real world
-- or even for a reasonable approximation of
such objective rationality.
50. Cognitive Limitations
Human decision makers can retain only a few bits of
information in short-term memory
7 plus or minus 2
Those who think in concrete rather than abstract terms tend
to be somewhat limited in their ability to process
information
inside versus outside the box
Propensity for risk may limit the amount of information
needed to arrive at a decision
risk takers may require less information than risk avoiders
52. Bounded Rationality
• We all suffer from it
• There is no cure
• So how do we deal with it?
– We rely on structured problem solving
methods to help us minimize or overcome
the effects of BR