Decision Making Skill

PREPARED BY : SIMEON-PAUL TAIWO EMMANUEL

DATE: : - 24/11/2021
By The End Of This Training You Shall Be Able
To Answer

 What is Decision Making?

 Process Steps of Decision Making
 Types of Decision Making
 Factors Affecting Decision Making
 6 C’s of Decision Making
 Methods of Decision Making
 Factors Affecting Decision Making
What is Decision Making?

 In A simple words “The process of making choice among several alternatives “

 Trewatha & Newport defines decision making process as follows:, “Decision-making
involves the selection of a course of action from among two or more possible
alternatives in order to arrive at a solution for a given problem”.
 1. Identify the
Problem

2. Establish
8. Evaluate the
Decision
Decision
Criteria

3. Weigh
7. Implement Process Steps of
Decision
the Decision Decision Making Criteria

6. Choose best 4. Generate

Alternative Alternatives

5. Evaluate the
Alternatives
While evaluating Alternatives Check if
Factors Affecting Decision Making

Visible Factors Invisible Factors

 Sales  Prestige of the enterprise
 Cost  Goals
 Purchase  Consumer Behaviour
 Production  Employee Morale
 Priority  Experience of Decision Makers
 Recourses  Perception
 Demand  Risk
Types Of Decision Making
 Programmed :- Decision that are
simple and routine and have a pre-
established decision making plan,
Procedures or Polices.
For Instance.
1> Applying for Raw Material
2> Dispatching Finished Goods
3> Applying For Leaves
Etc..
 Nonprogrammed :- Decision that
are new and Complicated in nature
and it also requires thought process
and creativity or out of box thinking.
For Instance
1> Unable to produce desired product
with available SOP
2> Shortage of Financial recourses
3> Natural Calamities
Etc..
6 C’s Of Decision Making

1. Construct a clear picture of precisely what must be decided.

2. Compile a list of requirements that must be met.
3. Collect information on alternatives that meet the requirements.
4. Compare alternative that meets your requirement.
5. Consider the ‘What Might Go Wrong’ with all aternatives
6. Commit to a decision and follow through with it.
Methods Of Decision Making

 Brainstorming : - is a group creativity technique by which efforts are made

to find a conclusion for a specific problem by gathering a list of ideas
spontaneously contributed by its members.
 Nominal group technique :- Nominal group technique (NGT) is a structured
method for group brainstorming that encourages contributions from
everyone. First, every member of the group gives their view of the solution,
with a short explanation. Then, duplicate solutions are eliminated from the
list of all solutions, and the members proceed to rank the solutions, 1st, 2nd,
3rd, 4th, and so on.
 Survey or Poll :- An Election, where majority wins.
Methods Of Decision Making Cntd.

 Delphi Method : - provides for a written format without having all managers
meet face-to-face. Problem is distributed in written form to managers who
then generate written alternatives Responses are received and
summarized by top managers. These results are sent back to participants
for feedback, and ranking. The process continues until consensus is
reached.

 Parato analysis : Always remember the rule of 80 : 20, 80 % of the problems

are because of the 20% of the reasons. If you fix 20 % of the reason 80 %
problem you have fixed.
Methods Of Decision Making Cntd.
Factors Affecting Decision Making

Individual Level Organisation Level

 Play Safe, Let me not take risk.
 Letting Fears & Biases tilt your thinking
& Analysis.
 Craving For unanimous approval
 Trying to make decision which are
outside your realm of authority
 Prejudice
 Lack of Ownership
 Begin with too little or wrong
information
 Overlook viable alternatives or waste
time considering alternatives which
have no realistic prospects.
 Not following 6 C’s
 Lack of SOP
 Lack of leadership