PRINCIPLES OF

MANAGEMENT
MAHEEN KHAN
SUBMITTED TO DR. ABDUL SAMAD
ASSIGNMENT# 02

Q: Follow 8 steps of Decision making process and explain each step

with at least 2 examples. Develop a scenario where you apply all 8
steps in any two order placing or any two problems faced by
organization.
STEP# 01: IDENTIFYING THE
PROBLEM
Understanding, evaluating and becoming
aware of the problem.
E.g.: 1 Hospital managers realizing they have a
shortage of beds.
E.g.: 2 Restaurant struggles with taking and
recording orders effectively.
STEP#02: EVALUATING DECISION
CRITERIA:
After the problem is diagnosed, we evaluate
on what basis the decision has to be made.
E.g.: 1 The Hospital judges how to best tackle
the problem with the available resources and
budget.
E.g.: 2 The restaurant evaluates the situation
by judging on what grounds it can make a
decision.
STEP#03: ALLOCATING WEIGHTS TO
CRITERIA:
In this step the manager points out what
alternative seems the most appropriate and
assigns probability of selection to each
available option.
E.g.: 1 The Hospital considers the
attractiveness of each solution but narrows
down to either opening a new wing for
patients on the existing premises OR to
establish a new branch in a different location.
E.g.: 2 The manager can choose whether to
consider extra waiting staff OR automated
ordering screen at each table OR having an
independent order recording ERP system
implemented.
STEP# 04: DEVELOPING ALTERNATIVES
The organization invests time and money into
the most attractive decisions, developing them
for possible dissection.
E.g.: 1 The hospital looks into how each
alternative will behave is selected in the long
SCENARIOS:
Suppose that psychiatric consultants pvt. Ltd,
are facing a dilemma regarding the following 2
areas:
1. The clients of the mentioned company
are complaining about the waiting time
for each appointment as well as less
room in waiting area.
2. The clients are having trouble in
affording the fee for each appointment.
The company can evaluate the decisions of
their criteria for the following problems by:
1. Offer patients compensation for any
wasted time on behalf of the company,
OR Consider expanding the waiting
area OR Hiring a receptionist to aid
appointment coordination.
2. They are offered discount packages, OR
they are assigned certain benefits of
being a premium client.
The corporation allocates weights to the given
criteria by:
1. The clinic considers its budget as well
as current on premises personnel.
2. The organization judges the best long
term solution for both the client and
the company.
The alternatives that the company develops
and pursues as viable options:
1. The company looks into how much
building a new waiting area costs and
simultaneously develops the option of
allocating different time slots for each
run.
E.g.: 2 The restaurant will consider the long
term ramifications of their choices and options
they go with.
STEP#05: ANALYSING ALTERNATIVES
The organization further evaluates its available
options without settling on a final decision.
E.g.: 1 The hospital judges its decision criteria
nearing its final options.
E.g. : 2 The restaurant carefully
Considers its alternatives analytically.
STEP#06: SELECTING AN ALTERNATIVE
The organization finally settles on a final
decision.
E.g.: 1 The concerned authority at the
hospital makes their decision on hospital beds.
E.g.: 2 The manager opts for more waiters.
STEP#07: IMPLEMENTING THE
ALTERNATIVE
The organization applies their practical
decision.
E.g.: 1 The hospital puts in an order to start
construction on a new hospital wing.
E.g.: 2 The manager puts out an
advertisement for service needed.
client.
2. The corporation invests resources into
dissecting how well their offers might
fare.
The clinic carefully analyses its narrowed down
options:
1. The corporate judges closely whether
each decision would have a good pay
off.
2. The organization analyses the risk
factor of each option before making
their decision.
The hospital makes decisions after all previous
steps:
1. The clinic ultimately chooses to hire a
receptionist to coordinate each
appointment timing.
2. The company choses to give discounts
for a selected few cases.
The clinic puts into practice its chosen
alternatives.
1. The clinic quickly gets to work and
brings on board a receptionist that
spaces each appointment an hour
apart.
2. The clinic offers its patients better
prices or installments in bills for
specific cases.
STEP#08: EVALUATING DECISION
EFFECTIVENESS
The management after selecting and
implementing their choice judges whether
their choice was productive.
E.g.: An additional hospital ward led to
enough beds.
E.g.: More staff ended up being too expensive
for the restaurant to financially sustain.
The organization takes its time to conduct an
assessment of how their clinic operates.
1. The clients appear satisfied with less
wait times and emptier waiting rooms.
2. The clients were dissatisfied with the
evaluation of what made them
deserving of the discount facility and
every other patient demanded their
discounted option.