The Decision Making Process

The Decision Making Process

✤ Definition:

✤A set of eight steps that begins with identifying a problem; it

moves through selecting an alternative that can alleviate the
problem and concludes with evaluating the decision’s effectiveness

✤ This process can be used to describe both individual and group

decisions.
The Decision Making Process

Identification Identification Allocation Development Analysis Selection Implementation

of a of Decision of Weights of of of an of the
Problem Criteria to Criteria Alternatives Alternatives Alternative Alternative

Evaluation
of
Decision
Effectiveness
Step 1: Identification of a
Problem

✤ A Problem: a discrepancy between an existing and a desired

state of affairs

✤ In real world, most problems are not clear.. Thus, problem

identification is not simple

✤ Also, problem identification is subjective

✤ Furthermore, managers who mistakenly solve the wrong

problem are not different from those who don’t solve it!
How Can Managers Identify
Problems?

✤ They need to make comparisons between current state of affairs

AND some standard

✤ The standard can be:

✤ past performance

✤ previously set goals

✤ the performance of some other unit within the organization or some

other organization
Step 2: Identification of Decision
Criteria

✤ Here, we select specific criteria that we will use in making the

decision. The criteria include: price, weight, size, number of
employees, hours needed ... etc.

✤ Decision Criteria (single is criterion): factors that are relevant in

a decision

✤ Every decision making has a criteria whether explicitly stated or

not

✤ If a factor is not included, it’s considered irrelevant

Step 3: Allocation of Weights to
Criteria

✤ In this step, we give weights to the criteria identified in the

previous step

✤ A simple approach: Give 10 to the highest important factor, and

then assign weight the rest against that standard

✤ For example: if you give another criterion 5, the standard is twice

as important

✤ Mainly, you use your personal preferences. In a more studied

decisions, you will use data, statistics, studies, analysis, and
research
Important Criteria and Weights in
a Car-Buying Decision
Criterion Weight
Price 10
Interior Comfort 8
Durability 5
Repair Record 5
Performance 3
Handling 1
Step 4: Development of
Alternatives

✤ Here, we list all the alternatives that could succeed in solving the
problem

✤ We only list them, without evaluating them

Step 5: Analysis of Alternatives

✤ Each alternative is evaluated by appraising it against the criteria

✤ The strengths and weaknesses of each alternative become both

evident as we compare them to the criteria and weights
established in step 2 and step 3

✤ The assessment is clearly a personal judgement

Assessment of Possible Car
Alternatives

Alternative Initial Interior Repair Total

Price Comfort Durability Record Performance Handling

TATA 5 6 9 10 7 7 44

Maruti
7 6 8 6 5 6 38
Suzuki

Mahindra 9 7 6 4 4 7 37

Toyota 6 5 10 10 6 6 43

Hyundai 8 6 6 5 7 8 40
Step 6: Selection of an
Alternative

✤ Here, we choose the best alternative among those assessed

✤ We merely choose the alternative that scored the highest score

in step 5

✤ In our example: TATA

Step 7: Implementation of the
Alternative

✤ Decision implementation: putting a decision into action

✤ This includes conveying the decision to those affected and

getting their commitment to it
Step 8: Evaluation of Decision
Effictiveness

✤ Managers appraise the result of the decision to see whether it

has corrected the problem; did the alternative chosen in step 6

and implemented in step 7 accomplish the desired result?

 TYPES OF DECISIONS:

PROGRAMMED DECISIONS:
Programmed decisions are routine and repetitive, and the organization typically
develops specific ways to handle them. A programmed decision might involve
determining how products will be arranged on the shelves of a supermarket.
For this kind of routine, repetitive problem, standard arrangement decisions are
typically made according to established management guidelines.
NON PROGRAMMED DECISIONS:
Non programmed decisions are typically one shot decisions that are usually
less structured than programmed decision.
There are THREE main types of decision that the nurse manager
can experience in different situations, namely: routine,
adaptive, and innovative decisions.

A- Routine decisions:
is the decision made when problems are relatively well
defined and common and when established rules, policies, and
procedures can be used to solve them. e.g. shortage of nursing
staff
B- Adaptive decisions:
is the decision made when problems and alternative solutions
are somewhat unusual and only partially understood. e.g.
changing working time pattern or methods of assignment
C- Innovative decisions:
is the decision made when problems are unusual and unclear
and creative solutions are necessary. e.g. increase infection
rate to 50% among surgical patients
 Decision making techniques

Decision making techniques vary according to the nature of the problem or

topic, decision maker, situation, and decision making method or process.

Nurses are using tools such as cause- and- effect diagrams, flow charts,

Pareto charts, run charts, histograms, control charts, and scatter diagrams

to help understand facts and relationships in processes they are examining.

 Decision making techniques

1. Group decision making:

A number of studies have shown that professional people do not function well

under micromanagement.

Group problem solving casts the manager in the role of facilitators and consultant.

Compare to individual decision making , group can provide more input and better

decision.
 Decision making techniques

2. Nominal group technique (NGT)

-It is eliciting written questions, ideas, and reactions from group members.

Consists of :

-Silently generating ideas in written.

-Round-robin presentation by group members of their ideas on a flip chart.

-Discussing each recorded idea and evaluate.

-Voting individually on priority ideas, with group solution being derived

mathematically through rank ordering.

 Decision making techniques

3. Delphi technique

It is judgments on a particular topic are systematically

gathered from participants who do not meet face to face.

Useful when expert opinions are needed .

 Decision making techniques

4. Statistical aggregation:

Individuals are polled regarding a specific problem and their responses are

tallied .

like Delphi technique , does not require a group meeting.

no opportunity for group members to strength their interpersonal tie or

interaction.
 Decision making techniques

5. Brainstorming

The idea generating technique wherein a Group members meet and

generate diverse ideas about the nature, cause , definition, or solution to

a problem without regard to questions of feasibility or practicality.

Through this technique, individuals are encouraged to identify a wide

range of ideas. Usually, one individual is assigned to record the ideas on a

chalkboard. Brainstorming may be used at any stage of the decision-

making process, but it is most effective at the beginning, once a problem

has been stated.