MODELS OF DECISION

MAKING

Presented By : Rubina Balani

What is Decision Making?
 Decision making can be regarded as an outcome of
mental processes leading to the selection of a
course of action among several alternatives.
Decision Making Process
1. Identify the organizational problem
2. The generation of alternative solutions
3. Choose an alternative
4. Implementing of chosen alternative
Decision Making Situation
 Certainty
 Uncertainty
 Risk
Models of Decision Making
Rational Model
 The Rational Model of decision making, managers
engage in completely rational decision processes.
Steps Involved in Rational Model of
Decision Making
1. Identifying a problem.
2. Identifying the decision criteria.
3. Allocating weights to the criteria.
4. Developing alternatives.
5. Analyzing alternatives.
6. Selecting an alternative.
7. Choosing a course of action and implementing the
alternative.
8. Evaluating the decision effectiveness.
Non Rational Models
1. Satisficing Model
a) Bounded Rationality
b) Actual Decision Making
Thank You…