PIS4

INFORMATION SYSTEM
OPERATIONS
AND MAINTENANCE
PIS 4 – ISOM (Decision-making Process)

What is a Decision?
• It is a conclusion or resolution reached after
consideration.
• Effective and successful decisions make profit to the
company and unsuccessful ones make losses.
• Therefore, corporate decision making process is the
most critical process in any organization.
PIS 4 – ISOM (Decision-making Process)

Steps in Decision-making Process

Step 1: Identification of the purpose of the decision
• The problem is thoroughly analysed:
 What exactly is the problem?
 Why the problem should be solved?
 Who are the affected parties of the problem?
 Does the problem have a deadline or a specific
time-line?
PIS 4 – ISOM (Decision-making Process)

Steps in Decision-making Process

Step 2: Information Gathering
• There can be dozens of factors involved and affected
by the problem.
• In the process of solving the problem, gather as much
information related to the factors and stakeholders
involved in the problem.
PIS 4 – ISOM (Decision-making Process)

Steps in Decision-making Process

Step 3: Principles for Judging the Alternatives
• The baseline criteria for judging the alternatives
should be set up.
• When it comes to defining the criteria, organizational
goals as well as the corporate culture should be taken
into consideration.
PIS 4 – ISOM (Decision-making Process)

Steps in Decision-making Process

Step 4: Brainstorm and Analyse the different Choices
• Brainstorm to list down all the ideas.
• Before the idea generation step, it is vital to
understand the causes of the problem and
prioritization of causes.
• Use decision-making tools such as the Cause-and-
Effect Diagram or the Pareto Chart.
PIS 4 – ISOM (Decision-making Process)

Steps in Decision-making Process

Step 5: Evaluation of alternatives
• Use of judgement principles and decision-making
criteria to evaluate each alternative.
• In this step, experience and effectiveness of the
judgement principles come into play.
• Compare each alternative for their positives and
negatives.
PIS 4 – ISOM (Decision-making Process)

Steps in Decision-making Process

Step 6: Select the best alternative
• The selection of the best alternative is an informed
decision since there is already a methodology to
derive and select the best alternative.
PIS 4 – ISOM (Decision-making Process)

Steps in Decision-making Process

Step 7: Execute the decision
• Convert decision into a plan or a sequence of
activities.
• Execute plan alone or with the help of subordinates.
PIS 4 – ISOM (Decision-making Process)

Steps in Decision-making Process

Step 8: Evaluate the results
• Evaluate the outcome of decision taken.
• See whether there is anything that should be learned
and then correct these in future decision making.
PIS 4 – ISOM (Decision-making Process)

In Summary:
• When it comes to making decisions, always weigh
the positive and negative business consequences
and should favour the positive outcomes.
• Possible losses to the organization are avoided and
keeps the company running with a sustained growth.
• Making decisions and accepting its consequences is
the only way to stay in control of the corporate life and
time.
Seatwork
1. What decision-making process do you use when working
with a team?

2. Describe a time when you made a difficult decision.

3. When did you make a decision to take initiative?

4. Give an example of a decision you made (and the

outcome)