Decision Making

A Presentation by Tina Grace Cruz

What is Decision-Making?
Best Solution
among

Alternatives

The process of examining your possible

options, comparing them, and CHOOSING a
course of ACTION.

Factors on Making Effective

Decisions

Perception.

Goals.

Priority.

Values.

Acceptability.

Demands.

Risk.

Style.

Resources.

Judgement.

PERCEPTION

PRIORITY

ACCEPTABILITY

RISK

RESOURCES

GOALS

VALUES

DEMANDS

STYLE
Directive Style - people using this style has a low tolerance
for ambiguity and seeks rationality.
Analytic Style - people using this style have a much greater
tolerance for ambiguity than do directive decision makers.
Conceptual Style - people tend to be very broad in their
outlook and consider many alternatives
Behavioral Style - people who tend to work well with others.

JUDGEMENT

Six Cs of Decision Making

1. Construct.
2. Compile.
3. Collect.
4. Compare.
5. Consider.
6. Commit.

Six Cs of Decision Making

Construct a clear picture of precisely what must be
decided.
Compile a list of requirements that must be met.
Collect information on alternatives that meet the
requirements.
Compare alternatives that meet the requirements.
Consider the "what might go wrong" factor with each
alternative.
Commit to a decision and follow through with it.

Decision Making Process

Types of Decision Making

1.Programmed decision
A decision that is fairly structured or
Recurs with some frequency (or both)
2.Non programmed decision
A decision that is relatively
unstructured and occurs much less
often than a programmed decision

Decision Making
Conditions
The decision
maker faces
conditions of.

Certainty

Risk

Uncertainty

Level of ambiguity and chances of making a bad decision

Lower

Moderate

Higher

Models of Decision
Making
1. Rational Model
Managers are logical and rational and that they make
decisions that are in the best interests of the
organization.
2. Behavioral Model
Managers are not always logical and they use intuition,
and personal judgements in making decisions

Assumptions of Rational
Model
Decision makers have complete information about the
decision situation and possible alternatives.
They can effectively eliminate uncertainty to achieve
a decision condition of certainty.
They evaluate all aspects of the decision situation
logically and rationally.

Important Concept in
Decision Making
Bounded rationality
- Recognizes that people are limited by organizational
constraints such as time, information, resources, and their own
mental capabilities.
Satisfying
- The search and acceptance of something that is
satisfactory rather than perfect or optimal.

Important Concept in
Decision Making (cont..)
Intuition
- An unconscious analysis based on past experience.
Escalation of Commitment
- The tendency to increase commitment to a previously
selected course of action beyond the level that would be
expected if the manager followed an effective decisionmaking process.

Scope of Strategic
Decision Making

Inherent Personal
Traps

Trying too hard to play it safe.

Letting fears and biases tilt your thinking

and analysis.

Getting lost in the minutia can cause

trouble.

Craving for unanimous approval.

Trying to make decisions which are outside

your realm of authority.

Inherent System
Traps

Willing to begin with too little, inaccurate,

or wrong information.
Overlook viable alternatives or waste
time considering alternatives which have
no realistic prospects.
Not following the six C's.
Failure to clearly define the results you
expect to achieve.
Worst of all, failure to reach a decision.

Related Quotes
Be sure you are right -- then go
ahead.
Davy Crocket.

Doing what's right isn't hard -- Knowing what's

right is.
Lyndon B.
Johnson.
Once you've made your mark, watch out for
erasers!
Will Rogers.

Thank You!