Presentation on Decision Making

1. PRESENTATION ONPRESENTATION ON
DECISION MAKINGDECISION MAKING

2. DECISION MAKINGDECISION MAKING
What is Decision Making?
Decision making can be regarded
as the Judgmental process resulting in the
selection of a course of action. When trying
to make a good decision, a person must
weight the positives and negatives of each
option, and consider all the alternatives.

3. Importance of making effectiveImportance of making effective
Decision MakingDecision Making
• Better utilization of resources
• Business growth.
• Facing problems and challenges.
• Achieving objectives.
• Facilitates innovation.
• Increases efficiency.
• Motivates Employees.

4. Main Steps of EffectiveMain Steps of Effective
Decision-makingDecision-making
• Better utilization of resources
• Business growth.
• Facing problems and challenges.
• Achieving objectives.
• Facilitates innovation.
• Increases efficiency.
• Motivates Employees.

5. Main Steps of EffectiveMain Steps of Effective
Decision-makingDecision-making
Main Steps of Effective Decision-making:
 Establish the specific decision: You cannot afford to generalize the process of decision
making. In order to find the right tool that will help you make the right decision, you need clear
on the decision that must be taken.
 Gather the details: One of the most critical stages in making decisions is gathering the
relevant information. This can be through questionnaires, self-assessments and external sources
and so on.
 Consider Alternatives: While looking at the various tools to help you take a decision, you
should have a provision for the alternatives that would help the company achieve the same
objective.
 Weigh all factors: Take time to weigh all the critical factors, especially the information that
you have gathered. This will help you determine if you are taking the right direction. Ultimately,
the decision that you will take should be in line with the objectives of the company and help
solve some of the challenges that the company is facing.
 Pick the best option: Once you have all factors in place and the various alternatives, you
should pick the best option. This is what makes entrepreneurs stand out, due to their ability to
make critical decisions.
 Implement it: Do not stop at the point where the decision is made; take action to implement
it and watch out for the changes.
 Evaluation: Most of the successful entrepreneurs will rescind any decision that is not
effective. You should review all the decisions after a while so as to check if the desired results
are being achieved. It would be illogical to uphold a decision that is not bringing the desired gains
to your organization.

6. Tools for Decision MakingTools for Decision Making
1) Market Research
 Marketing Research is an essential tool, especially when you are
gathering the information before taking a decision. This will include
analysis of the potential customers, state of the market and the
competition in the market among others. This is a strategic tool, which
most entrepreneurs rely on to make the right decision.
2) Decision Matrix
 With this tool, you will critically analyze all the available options or
alternatives of a particular decision. This allows you to look at all the
options and the factors that affect each. You can use comparative analysis
so that you can find the best option to help you in decision making. This is
one of the most critical tools for most organizations as it will help reveal
the best strategy and decision to take. Here is below an example of a
decision matrix:

7. Tools for Decision MakingTools for Decision Making
3) Cost-Benefit Analysis
With a cost-benefit analysis, you will take the time to assess all the costs
that will be involved in the decision taken and the benefits that the
organization will gain from this. As a result, entrepreneurs will go for
the decisions that will have a greater benefit, in terms of the overall net
profits in the organization. The sole objective of any company is to
make profits, and as such, every decision taken should be towards that
direction.
4) T-Chart
This is also among the best tools that can be used for comparative
analysis. The T-Chart is used to weigh the pros and cons of any option
that the organization may be considering. At the end of it all, it helps
entrepreneurs to make the right decision, having weighted in all the
advantages and disadvantages of all the available options.

8. Tools for Decision MakingTools for Decision Making
5) SWOT Analysis
The SWOT analysis is commonly used for strategic planning and eventual
decision making. Using SWOT analysis, entrepreneurs are able to
maximize on the strengths of the organization. The weaknesses are also
considered in view of the available opportunities. The organization will
also consider the possible threats before taking any course of action. This
is an effective tool as it allows entrepreneurs to analyze the company from
all possible angles before taking a decision.

9. Tools for Decision MakingTools for Decision Making
 6) Pareto Analysis
This is commonly referred to as the Pareto principle, and it is common
when organizations have to make huge decisions. This is inclined towards
the prioritization in that 20% of the factors that contribute to 80% of the
organization’s growth will be given top priority. This will give the decisions
that have the highest level of impact top priority. Here is an example of a
Pareto analysis diagram:

10. Tools for Decision MakingTools for Decision Making

11. Tools for Decision MakingTools for Decision Making
 7) Feasibility Study
Feasibility studies are also used in the strategic planning of the business. In
this case, entrepreneurs will assess the possibility of creating a specific
project and if it can make profits. This is among the tools that should be
used at the very beginning of launching a new product or service. This will
help the company decide if a particular strategy is ideal or feasible for the
company or not.