Chapter 6 – Decision Making

 Ahmed Vaseer – Roll#15

 Babar Khan – Roll#14

 M. Tayyab – Roll# 07

 Ateeq Rauf – Roll# 25

 Hamid Raza – Roll#23

 Adil Saeed – Roll#26

The word decision is defined as:
“A choice between two or more alternatives”.

Thus decision-making can be defined as:

“the selection of a course of action from among
alternatives”.
 Identifying a problem
 Identifying decision criteria

 Allocating weights to criteria

 Developing Alternatives

 Analyzing Alternatives

 Selecting and Alternative

 Implementing the Alternative

 Evaluation (of Decision Effectiveness)

The business environment has in recent times changed from
being predictable to being unpredictable and from being
simple to being complex. Hence, we require a
transformation in how decisions are made, both individually
and within organizations. As it redefines its role in society,
business must restore trust with its employees and its
customers. Personally, professionally, and organizationally,
it’s time to gain access to all your creative resources and
intelligences so that you can make the decisions you need
to, to prime your company for success in this ever-changing
world.
Programmed Decisions

Decisions
Non-Programmed
Decisions
Structured Problems
Problems
Non - Structured Problems
 Structured Problems - straightforward, familiar, and easily defined
problems.
 A decision that is repetitive and routine
 A definite method for its solution can be established
 Does not have to be treated a new each time it occurs
 Procedures are often already laid out

 Programmed decision – a repetitive decision that can be handled by a

routine approach
 Procedure - a series of sequential steps used to respond to a well-
structured problem
 Rule - an explicit statement that tells managers what can or cannot be
done
 Policy - a guideline for making decisions
 Example 1

 Example 2
 Example 1

 Example 2
 Example 1

 Example 2
 UnstructuredProblems - problems that are new or
unusual and for which information is ambiguous or
incomplete.

 Non-programmed decisions - unique and nonrecurring

and involve custom made solutions.
 Example 1

 Example 2