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Professional Ethics (HU-222)

Decision-Making

Izhar Mithal Jiskani, Ph.D.

Assistant Professor | Mining Engineering
National University of Sciences & Technology (NUST),
Balochistan Campus, Quetta, Pakistan
izhar@nbc.nust.edu.pk
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Decision-making

 Decision-making is the thought process of selecting a logical choice

from the available options.
 To make a wise choice, the decision-maker must weigh the pros and
cons of each option and consider all the alternatives.
 Effective decision-making involves forecasting the likely outcome of
each alternative and, based on this analysis, determining the optimal
option for that particular situation.
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Decision-making

 Every member who participates (or is supposed to participate) in a

decision-making group is
• equally responsible for the consequences of the decisions taken,
• should fully support and abide by the group's decisions (whether
or not he or she participated in the decision-making process),
• otherwise, should resign from the group
 This ensures that the decision-making process is fair, transparent,
and productive.
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Rational decision-making

Single, well-
defined goal

Consideration Clear and

of alternatives unambiguous
and problem
consequences definition

Rational
decision-making

Consideration
Preferences of constraints
are clear (time and
cost)
Preferences
are constant
and stable
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Things to consider . . .

 Certainty – how certain is a particular outcome?

 Risk – how much risk can you take?
• expected value - the conditional return from each possible
outcome
 Uncertainty – Limited information prevents estimation of outcome
probabilities for alternatives.
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To make a better decision

 Increase Your Knowledge

Ask questions

Get experience

Use consultants

Do your research

Force yourself to recognize the facts when you see them (maintain
your objectivity).
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To make a better decision

 Consider the pros and cons

Quantify realities by sizing up your options and taking into
consideration the relative importance of each of your objectives.

 Don’t overstress the finality of your decision

Knowing when to quit is sometimes the smartest thing a manager can
do.

 Make sure the timing is right

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To make a better decision

 Creativity
The process of developing new responses to a problem.

 Brainstorming
A technique in which prior judgments and criticisms are specifically
prevented from being expressed in order to encourage the free flow of
ideas which are encouraged.

 Nominal group technique

A decision-making technique in which group members are physically
present but operate independently. Ideas are then ranked
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Factors influencing decision-making

1.1. 3.
2. 4. Time 5. Group
Personal Information
Emotions: pressure: dynamics:
biases: overload:

When we
In group
are under
settings,
1.Personal Emotions time
Having too the
biases can can impact pressure,
much dynamics
affect the decision- we may not
information between
way we making, as have
can be individuals
perceive they can enough
overwhelmi can impact
and cloud our time to
ng, making decision-
evaluate judgment gather all
it making,
information and cause the
challenging leading to
, leading to us to make necessary
to make a decisions
flawed impulsive information
decision. that may
decisions. decisions. or evaluate
not be
alternatives
optimal.
thoroughly.
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Decision-making process

Common eight-step process

3.
1. 2.
Allocation of
Identification of Identification of
weights to
problem decision criteria
criteria

6. 5. 4.
Decide on an Analysis of Development of
alternative alternatives alternatives

7. 8.
Implementation Evaluation of
of decision decision
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Decision-making process

1. Identification of problem
The first step in decision making is to identify the problem or
opportunity that requires a decision.
For example:

Selection of a contractor for a new building project

Reason:
Selecting the right contractor for a new building project is crucial for
the success of the project.
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Decision-making process

2. Identification of decision criteria

In this step, the decision maker identifies the relevant criteria that will
be used to evaluate potential alternatives (contractors).
1. Experience
2. Past performance
3. Price
4. Availability
5. Project schedule
6. References.
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Decision-making process

3. Allocation of weights to criteria

Once the decision criteria have been identified, the decision maker
assigns weights to each criterion based on its relative importance. This
helps to prioritize criteria and ensure that the most critical factors are
given the greatest consideration.
1. Experience (C1) 4 Decision-maker
2. Past performance (C2) 5 assigned weights on

3. Price (C3) 3 a scale of

4. Availability (C4) 5 1 (less important)

5. Project schedule (C5) 2 to

6. References (C6) 1 5 (highly important)

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Decision-making process

4. Development of alternatives
The next step is to generate a list of contractors (alternatives) to be
given the contract.
1. Pak Construction Company (A1)
2. BrightStar Contracting (A2)
3. Keystone Building Solutions (A3)
4. OnPoint Construction (A4)
5. Platinum Pro Builders (A5)
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Decision-making process

5. Analysis of alternatives
Once a list of alternatives has been developed, the decision maker
analyzes each one against the decision criteria.

C1 C2 C3 C4 C5 C6
Decision-maker assigned
A1 4 3 4 3 2 5 weights to all alternatives (A1-

A2 3 4 5 2 4 5 A5) based on the criteria (C1-

A3 5 5 5 5 5 2 C6) on a scale of

A4 3 5 5 5 5 5 1 (less important) to 5 (highly

important)
A5 2 2 3 4 5 4
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Decision-making process

5. Analysis of alternatives
For further calculations, weights assigned to criteria (C1-C6) are
multiplied with weights given to all alternatives (A1-A5)

4 5 3 4 2 1 These are weights assigned to criteria in Step 3.

C1 C2 C3 C4 C5 C6 C1 C2 C3 C4 C5 C6

A1 4x4 3x5 4x3 3x4 2x2 5x1 A1 16 15 12 15 4 5

A2 3x4 4x5 5x3 2x4 4x2 5x1 A2 12 20 15 10 8 5

A3 5x4 5x5 5x3 5x4 5x2 2x1 A3 20 25 15 25 10 2

A4 3x4 5x5 5x3 5x4 5x2 5x1 A4 12 25 15 25 10 5

A5 2x4 2x5 3x3 4x4 5x2 4x1 A5 8 10 9 20 10 4

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Decision-making process

6. Decide on alternatives
Based on the analysis of alternatives, the decision maker selects the
most appropriate solution or alternative.

C1 C2 C3 C4 C5 C6 Ranking

A1 16 15 12 15 4 5 Add all rows 67 4

A2 12 20 15 10 8 5 70 3

A3 20 25 15 25 10 2 97 1

A4 12 25 15 25 10 5 92 2

A5 8 10 9 20 10 4 61 5
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Decision-making process

7. Implementation of alternatives
After the decision has been made, it is important to implement it
effectively. In this case, contract can be given to Keystone Building
Solutions (A3).
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Decision-making process

7. Evaluation of alternatives
The final step is to evaluate the effectiveness of the decision. This
involves monitoring the implementation of the decision, assessing its
impact, and making any necessary adjustments or course corrections.
The evaluation process helps to identify lessons learned and improve
future decision making.
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The choices we
make today
shape our
tomorrow.