DECISION MAKING

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Manager – The power of position:
Someone who uses his authority that comes from his position to influence the behavior & attitudes of
others, to achieve the organization objectives &
goals.

Leader – The power of personality:

Someone who uses his personality to influence the behavior & attitudes of others, to achieve the
organization objectives & goals.

Leadership:
Conduct by leaders aims to influence his subordinates to create Obedience - Acceptance - Sacrifice -
.
Giving - Not hesitating

Types of Charisma: -
Temporary Charisma:
That presence of a manager due to something added to him & not imbedded in his born characters.
He can’t always have it with him everywhere until the end of life.
Permanent Charisma:
That presence that doesn’t disappear for any reasons during the leader life and sometimes after his
death.
Famous Influence Model:
ARATA Influence Model: - (Accepted & Respected & Admired & Trusted & Appreciated)

Persuasive personality Role Concept:

4 key factors to persuade others:
1- Convince yourself first.
2- Have relative knowledge about your goals.
3- Push your goals into others interests.
4- Your goals should be inside the convince areas (FACTS & opinion planning & dream vision &
unseen)

From the previous discussion, we can say that:

- Leaders have the ability to manage people well.
- Leaders are often succeeded managers.
- When we are caring about leaders, we are caring about those who have talents, skills, creativity that
helps us in shaping the future of our organizations – Strategic Insights.
- Leaders tends to be decision takers, while Managers tends to be decision makers.

Decision-Making Dimensions:
Certainty: situation in which a manager can make an accurate decision because the outcome
(information) of every alternative choice is clearly known.
Risk: situation in which the manager is able to estimate the likelihood (probability) of outcomes that
result from the choice of particular alternatives" The effect of uncertainty conditions supported by
probability"

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Leadership Styles:
1-Dictatorial / Autocratic 2- Directive ‫بيجتمع بنوابه و لكن بيتأخذ القرارات بنفسه‬
3- Delegator ‫شخص بيفوض التخاذ القرارات و بيكون التفويض كلى و جزئى‬
4- Democratic consultative 5- Democratic participative

Leaders Mindset Methodology Matrix: -

1-High uncertainty / Rational analytic 2-low uncertainty / Rational Directive
3-High uncertainty /Intuitive Conceptual 4- low uncertainty / Intuitive Behavioral

Decision: process of selecting the best among the different alternatives

The Decision-Making Process:

1- Identifying the problem.
2- Create certain decision criteria.
3- Allocate weights for each criteria.
4- Developing, analyzing, and selecting an alternative that can solve the problem.
5- Implementing the selected alternative.
6- Evaluating the decision efficiency & effectiveness using suitable feedback mechanism.

RACI Model Approach:( old Method of Decision Making)

Responsible & Accountable & Consultant & Inform

Types of Programmed Decisions: -

Policy: A general guideline for making a decision about a structured problem.
Accept all customer-returned merchandise.
Procedures: A series of interrelated steps that a manager can use to respond to a structured
problem.
Follow all steps for completing merchandise return documentation.
Rules: An explicit statement that addresses what a manager or employee can or cannot do.
Managers must approve all refunds over $50.00.
No credit purchases are refunded for cash.

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Decision Making Tools:
1- Weighted Factors Analysis:

2- Revenues Matrix: ‫بيستخدم فى حالة زيادة خطوط االنتاج‬

It is a tool that express the outcome possible revenues that resulted from choosing some
alternatives evaluated by their probabilities.

RISK TAKER ‫) لو هستخدم‬3( ‫ & هختار خط االنتاج رقم‬Risk avoider ‫) لو هستخدم‬2( ‫هختار خط االنتاج‬
$ 250000= ‫ قليل‬Revenues‫ فى‬3&2 ‫و كمان الفرق بين خط االنتاج‬

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3- Breakeven Point: Total Revenues = Total Costs or No Profits or losses.
Total Revenues = unit price X unit numbers.
Total Costs = fixed costs + variable costs.

What the effect of changing any variable on revenue and cost curves?
‫ هيحدث زيادة معايا فى‬%15 ‫لو حدث زيادة فى شريحة الكهرباء بنسبة‬
total Revenues & Total Cost & Fixed cost =150 & Breakeven Point =1500 customer and300$ &
variable cost.

4 - Decision Tree:‫بيستخدم فى حالة أستثمار فائض من الميزانية‬

This method aims to select the best alternative according to its certainty and risks study

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