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    Master in Business Administration

    SUBMITTED BY:

    Name Student : Qazi Abdul Haseeb

    Roll No : AH523138

    Subject : Management Theory &Practice

    Assignment # : 02

    Date : 30 October 2010

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    ACKNOWLEDGEMENT

    I would like to thank to Almighty Allah who gave me knowledge and capability to make

    me able to complete and submit my Second Assignment successfully.

    I shall also like to wish to acknowledge and show my deep gratitude to all respected

    teachers, for their consistence, advice and support given during the writing up of this assignment.

    I personally visited to Roshan Centre. Plot 78-W, Jinnah Avenue, (New 2043), F-7/G-7,

    Blue Area, Islamabad I am also thankful to Branch Manager

    Mr. Idress-Ud-Din Khawaja who supported me well and provided me information about my

    topic.

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    AN ABSTRACT

    Many decision makers have a tendency to seek more information than required to make a good

    decision. When too much information is sought and obtained, one or more of several problems

    can arise.firstly A delay in the decision occurs because of the time required to obtain and process

    the extra information. This delay could impair the effectiveness of the decision or solution.

    Secondly Information overload will occur. In this state, so much information is available that

    decision making ability actually declines because the information in its entirely can no longer be

    managed or assessed appropriately. A major problem caused by information overload is

    forgetfulness. When too much information is taken into memory, especially in a short period of

    time, some of the information (often that received early on) will be pushed out.

    A common misconception about decision making is that decisions are made in isolation from

    each other; you gather information, explore alternatives, and make a choice, without regard to

    anything that has gone before. T he fact is, decision are made in a context of other decisions. The

    typical metaphor used to explain this is that of a stream. There is a stream of decision

    surrounding a given decision, many decisions made earlier have led up to this decision and made

    it both possible and limited.

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    TABLE OF CONTENTS

    Serial Description Page No

    1 ACKNOWLEDGEMENT 2

    2 ABSTRACT 3

    3 INTRODUCTION 5 16

    4 PRACTICAL STUDY 17-28

    5 DATA COLLECTION METHODS 23-24

    6 SWOT ANALYSIS 28 29

    7 CONCLUSIONS 29

    8 RECOMMENDATIONS 29

    9 REFERENCES 30

    10 ANNEX A 31

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    INTRODUCTION TO TOPIC

    DECISION MAKING:

    Decision making is a non liner, recursive process. That is most decisions are made by moving

    back and forth between the choices of criteria. And the identification of alternatives. The

    alternatives available influence the criteria we apply to them, and similarly the criteria we

    establish influence the alternative we will consider.

    There will always to some risk, some cost of failure when taking decisions. These risks can be

    reduced, but not eliminated, by following these steps when taking decisions. These steps sometimes called the decision making process

    1Establish the Objective of the OrganizationIt is not possible to take good decision unless it is clear what the aims of firms are.

    2Identify and Analyze the problem to be solvedAll decisions are taken to solve problems, managers need to know what they are trying to

    solve before deciding a decision .e.g. a sales manager is worried about falling sales. The

    decision taken at this stage to lower the prices which has no effect on demand but lowers

    the firms profit margin. Only later does the manager discover that sales fell due to

    advertisement not appearing in paper when they were planned to.

    Collect data on all the possible alternatives Solutions

    It is too easy to jump at the first solution through of. Managers must collect data about all

    possible options before making a final choice. This data must include the limits on what

    is possible. There is nonpoint in suggestion that the business stores should open all the

    day on Sunday, to boost sales if this is actually against the law

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    Implementing Decision

    Make the final decision and put it in to effect. This is called implementing the decision. The

    managers job is not finished even when this has been done. It is important to check to see that

    the decision has been put into effect and that it is working to plan.

    Review and Evaluation of the Decision

    Look back to see whether the right decision was made. This is called review and evaluation of

    the decision. This is sometimes very hard to do especially if the wrong decision was made. But

    by looking back and evaluating what happened lessons for the future can be learned

    The components of the Decision Making

    The Decision Environment:

    Every decision is made within a decision environment which is defined as the collection of

    information, alternatives values and preferences available at the time of the decision. An idealdecision environment would include all possible information, all of it accurate and very possible

    alternative, however both information and alternatives are constrained because the time and

    effort to gain information or identify alternatives are limited. The time constraint simply means

    that the decision must be made by a certain time. The effort constraint reflects the limits of

    manpower, money and priorities.

    Since decision must be mane within this constrained environment, we can say that the major

    challenge of the decision making is uncertainty, and a major goal of information needed to make

    a decision with certainty, so most decisions involve an undeniable amount of risk

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    The fact that decision must be made within a limiting decision environment suggests two thins

    ,first it explains why hindsight is so much more accurate and better at making decisions that

    foresight .as the time passes the decision environment continues to grow and expand .new

    information and new alternatives appear even after the decision must be made. armed with new

    information after the fact the hindsight can many times look back and make a much better

    decision than the original maker, because the decision environment has continued to expand.

    The second thing suggested by the decision with an environment idea follows from the above

    point. Since the decision environment continues to expand as time passes, it is often advisable to

    put off making a decision until close to the deadline. Information and alternatives continue to

    grow as time passes, so to have access to the most information and to the best alternatives, do not

    make the decision too soon. Now, since we re dealing with real life, it is obvious that somealternatives might no longer be available if too much time passes; that is a tension we have to

    work with, a tension that helps to shape the cutoff date for the decision.

    Delaying a decision as long as reasonably possible, then, provides three benefits:

    1.The decision environment will be larger, providing more information. There is alsotime for more thoughtful and extended analysis.

    2.New alternatives might be recognized or created. Version 2.0 might be released.3.The decision makers preferences might change. With further thought, wisdom, and

    maturity.

    The Effects of Quantity on Decision Making

    Many decision makers have a tendency to seek more information than required to make a good

    decision. When too much information is sought and obtained, one or more of several problems

    can arise. (1) A delay in the decision occurs because of the time required to obtain and process

    the extra information. This delay could impair the effectiveness of the decision or solution. (2)

    Information overload will occur. In this state, so much information is available that decision

    making ability actually declines because the information in its entirely can no longer be

    managed or assessed appropriately. A major problem caused by information overload is

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    forgetfulness. When too much information is taken into memory, especially in a short period of

    time, some of the information (often that received early on) will be pushed out.

    The example is sometimes given of the man who spent the day at an information heavy seminar.

    At the end of the day, he was not only unable to remember the first half of the seminar but he had

    also forgotten where he parked his car that morning.

    (3) Selective use of the information will occur. That is, the decision maker will choose from

    among all the information available only those facts which support a preconceived solution or

    position. (4) Mental fatigue occurs, which results in slower work or poor quality work. (5)

    Decision maker tires of making decisions. Often the result is fast, careless decisions or even

    decision paralysis no decisions are made at all.

    The quantity of information that can be processed by the human mind is limited.

    Unless information is consciously selected, processing will be biased toward the first part of th