Decision Making Slides

8/3/2019 Decision Making Slides

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ASSIGNMENT BY:

HARIS MASHOOD

L1F10MBBF2016


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Principles of Management

Managers asDecision

Makers

CHAPTER-3


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DecisionMaking a choice from two or

more alternatives.


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Why Decision-making


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D

ecision MakingAdministrative process based on decision making ,decision making is based on choice whereas choice isbased on alternatives.

Administrative

process

Decision Making

Choice

Best Alternatives


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The Decision-Making Process

Identifying a problem.

Identification of Decision Criteria.

Allocating weights to the criteria. Developing alternatives.

Analyzing the alternatives, that can resolvethe problem.

Selecting from alternatives.

Implementing the selected alternative.

Evaluating the decisions effectiveness.


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67

The Decision MakingProcess


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Step 1:

Identifying the Problem

Problem

Adiscrepancy between an existing and desiredstate of affairs.


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The decision making process begins by determining that aproblem exists: that is, there is an unsatisfactory condition.This is frequently expressed as a disparity between what isand what should be.

Whether a decision is necessary or not depends on theadministrators perception. What one person sees as aproblem another may see as perfectly acceptable state ofaffairs. So, the decision process begins with administratorsrecognition that there is a gap between what is desired andwhat actually is.

e.g. Purchase a new Laptop


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Step 2:

IdentifyingD

ecision Criteria

Decision Criteria

Criteria that define what's important or

relevant in resolving problem.Costs that will be incurred (investments required)

Risks likely to be encountered (chance of failure)

Outcomes that are desired (growth of the firm)


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Important Criteria

Criterion

Carrying Weight

Warranty

Battery life

Display Quality

Memory and Storage


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Step 3:Step 3:

Allocating Weights to the CriteriaAllocating Weights to the Criteria

Assigning a weight to each itemplaces the items in the correctpriority order of their importancein the decision making process.(1-10)


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Weights for Laptop (1-10)

Criterion Weight

Memory and Storage 10

Battery life 8

Carrying Weight 6

Warranty 4Display Quality 3


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Step 4:D

eveloping Alternatives

Toshiba protg s100Dell inspiron 700mHP Pavilion zd8000Apple iBookSoney vaio VGN-FS790

Gateway NX850XToshiba QomioG15-AV501Lenovo ThinkPad R52

Identifying viable alternatives

Alternatives are listed (without evaluation) that can resolvethe problem.


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Step 5:

Analyzing Alternatives

Appraising each alternatives strengths andAppraising each alternatives strengths andweaknessesweaknesses

An alternatives appraisal is based on its ability toAn alternatives appraisal is based on its ability toresolve the issues identified in steps 2 and 3.resolve the issues identified in steps 2 and 3.


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Assessed Values of Laptop Computers Using DecisionCriteria


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Step 6:S

electing an AlternativeChoosing the best alternative

The alternative with the highest total weight is chosen.

The final step in decision making process takes place when

all the alternatives have been enumerated and evaluated

against the decision criteria. This final step is the selection of

the best alternative which has quantitatively beendetermined.


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Evaluation of Laptop Alternatives AgainstWeighted Criteria


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Step 7:

Implementing the Alternative

Putting the chosen alternative into action.Putting the chosen alternative into action.

Conveying the decision to and gainingConveying the decision to and gainingcommitment from those who will carry out thecommitment from those who will carry out thedecision.decision.


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Step 8:E

valuating theD

ecisionsE

ffectiveness

The soundness of the decision is judged by its

outcomes.

How effectively was the problem resolved byoutcomes resulting from the chosen alternatives?

If the problem was not resolved, what went wrong?


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Documents

Decision Making Slides