Chapter:

DECISION MAKING

Should You Ask?

Sir, why is my
coursework marks so low?
I deserve higher marks.
Hehehe!

Which Mobile Phone should I buy?

What are the
things you
consider before
making a
decision?

TOPIC : DECISION MAKING

1. What is
Decision Making?

3. Types of
Decision Making

2. Characteristics of
Decision Making

4. Decision
Making Process

"No sensible decision can be made any longer

without taking into account not only the world as
it is, but the world as it will be. . ."
- Isaac Asimov

6.1 What is Decision Making?

Decision making is the cognitive (mental) process in
which there is a selection of a course of action among
alternatives.
Every decision making process produces a final choice.
choice
Decision making is a reasoning process which can be
rational or irrational.
Examples: what to buy, when to buy, where to buy

Source: http://en.wikipedia.org/wiki/Decision_making

Successful leaders have the courage to take

action while others hesitate.
- John C. Maxwell

2 Characteristics of Decision Making

MANAGERIAL FUNCTION
CONCERNS PROBLEMS
ALTERNATIVES ARE THE BASES
IMPORTANT ELEMENT OF PLANNING
INTELLECTUAL PROCESS
RATIONAL THINKING
MAY BE POSITIVE / NEGATIVE

 Making good decisions is a crucial skill at

every level.
- Peter Drucker

3 Decision Making Process

Steps

Tips

1. Define the PROBLEM clearly.

A lot of decision making goes wrong at the starting

point.
the more specific your definition of the decision is
to made, the clearer will be your analysis and the
likelihood of success.

2. Consider all the possible

choices.

Successful decision makers explore all of the

possible choices of the situation.
In fact many of the less obvious choices turn out to
be the most effective ones.

3. Gather all relevant information

and evaluate all the pros and
cons of each possible choice.

In many cases, we may lack sufficient information to

make an informed decision.
Analyze the advantages and disadvantages of each
choice

4. Select the choice that seems to

best meet the needs of the
situation.

Synthesize all what you learned in previous steps

and make a conclusion that you believe to be your
best choice.

5. Implement a plan of action and

then monitor the results, making
necessary adjustments.

Once you have selected your best choice, you need

to develop and implement a specific and concrete plan
of action.
As you begin taking the steps in your plan, you will
discover that adjustments need to be made.

Because I'm thinking in a broader way, I feel

like I am able to make better decisions.
- Takafumi Horie

4. Types of Decision
1. PROGRAMMED vs Non programmed
2. RATIONAL vs Irrational
3. PLANNED vs Unplanned
4. STRATEGIC vs Tactical
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5. INDIVIDUAL vs Group
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6. BASIC vs Routine

SWOT Analysis Internal and External

Factors
The aim of any SWOT analysis is to identify the key internal
and external factors that are important to achieving the
objective. SWOT analysis groups key pieces of information
into two main categories:
Strengths

Internal Factors
Organization
Weaknesses
Opportunities

External Factors
External Environment
Threats
Source: http://en.wikipedia.org/wiki/SWOT_Analysis

SUMMARY: DECISION MAKING

1. DEFINITION /
MEANING

Decision making is the cognitive process in

which there is a selection of a course of action
among alternatives.

2. CHARACTERISTICS

Managerial function, Problem concern, Alternative based,

Element of Planning, Intellectual process, Rational thinking,
Positive/Negative

3. PROCESS

1.
2.
3.
4.
5.
6.
7.

4. TYPES

Planned vs Unplanned

Define the Problem clearly.

Develop Decision criteria and allocate weights
Develop alternatives
Evaluate alternatives
Choose from among the alternatives
Implementation
Evaluating decision and feedback

Programmed vs Non-programmed
Strategic vs Tactical
Rational vs Irrational
Individual vs Group

Any Questions?