1. ITRODUCTION TO DECISION MAKING Dr. Akhlas Ahmed Preston University MBA Class, Lecture # 01 June 21st 2014

2. DECESION MAKING Please write a one sentence definition of decision making. 3. DECESION MAKING The process of examining your possibilities options, comparing them, and choosing a course of action. 4. DECESION MAKING Be sure you are right ----then go ahead: Davy Crocket 5. MAKING EFFECTIVE DECISIONS Factors that may effect on effective decision Goals Perception Priority Values Acceptability Demands Risk Style Resources Judgment 6. GOALS 7. PERCEPTION 8. PRIORITY 9. VALUES 10. ACCEPTABILITY 11. DEMANDS 12. RISK 13. STYLE 14. RESOURCES 15. JUDGEMENT 16. SIX Cs OF DECESION MAKING 1. Construct 2. Compile 3. Collect 4. Compare 5. Consider 6. Commit 17. CONSTRUCT Construct a clear picture of precisely what must be decided 18. COMPILE Compile a list of requirements that must be met. 19. COLLECT Collect information on alternatives that meet the requirements. 20. COMPARE Compare alternatives that meet the requirements. 21. CONSIDER Consider the what might go wrong factor with each alternative. 22. COMMIT Commit to a decision and follow through with it. 23. INHERENT PERSONAL TRAPS 1. Trying too hard to play it safe. 2. Letting fears and biases tilt your thinking and analysis. 3. Getting lost in the minutia can cause trouble. 4. Craving for unanimous approval. 5. Trying to make decisions which are outside your realm of authority. 24. INHERENT SYSTEM TRAPS 1. Willing to begin with too little, inaccurate, or wrong information. 2. Overlook viable alternatives or waste time considering alternatives which have no realistic prospects. 3. Not following the six Cs 4. Failure to clearly define the results you expect to achieve. 5. Worst of all, failure to reach a decision. 25. DECESION MAKING IN MANAGEMENT 26. RECOMMENDED TEXT BOOKS Making Management Decisions by Cooke and Slack: Prentice Hall International 27. Thanks