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CHAPTER 3-Decision Making
CHAPTER 3-Decision Making
The Nature of
Decision Making
Learning objective
3.1 Definition of decision making
3.2 Types of decision making
3.2.1 Programmed decision
3.2.2 Non-programmed decision
3.3 Types of condition under decision
making
3.4 The rationale of decision making
3.5 Decision making process
3.6 Group decision making techniques
LO 3.1 Definition of decision making
Non-
Program
Program
– Develop alternatives
• Seek creative alternatives
• Do not evaluate yet
LO 3.4 The rationale of decision making
• Reflect the results the organization wants to attain. Both the quantity and
quality of the desired results should be specified because these aspects of
the objectives will ultimately guide the decision maker in selecting the
Identifying appropriate course of action
objectives • Objectives can be short range or long range
1. More information and knowledge 1. The process takes longer than individ-
are available. ual decision making, so it is costlier.
2. More alternatives are likely to be 2. Compromise decisions resulting from
generated. indecisiveness may emerge.
3. More acceptance of the final 3. One person may dominate the group.
decision is likely. 4. Groupthink* may occur.
4. Enhanced communication of the
decision may result.
5. Better decisions generally emerge.
* a process in which bad decisions are made because the different members of a group
do not express their individual opinions about a plan, proposal, etc. but only say what
they think the rest of the group would agree with 15