DECISION MAKING PROCES
In our life we have many situations in which we have to decide or something we have to
choose which is better for us and fulfill our all needs and the process or method we choose
that is called decision making process
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IDENTIFYING A PROBLEM.
IDENTIDYING DECISION CRITERIA.
ALLOCATE WEIGHTS TO THE CRITERIA.
DEVELOP ALTERNATIVES.
ANALYZE ALTERNATIVE.
SELECT AN ALTERNATIVE.
IMPLEMENT THE ALTERNATIVE.
EVALUTE DECISION EFFECTIVENESS.
WHAT IS DECISION?
Manager at all levels and at all areas of organization make decisions. That isthey make choices. For
instance, top level managers make decisions about their organizational goals and lower level managers
make decisions about the production schedules etc.
IDENTIFYING A PROBLEM.
Every decision starts with a problem, a discrepancy between an existing and adesired condition let’s work
with an example Abdullah is manager and his employee need new bike because their old one’s are outdated
for doing theirjob make it simple, assume it’s not economical to add less fuel consumption company policy
to buy not lease now Abdullah have a decision to make.
IDENTIFY DECISION CRITERIA.
Once a manager identified problem. He must identify the decision criteria important or relevant to
resolving the problem every decision maker have criteria guiding his decision even they’re not
explicitly stated. In our exampleAbdullah decides after careful consideration that fuel consumption,
comfort level, built quality, long-term run.
Identifying a problem
Abdullah needs a new bike for
employee
Identifying decision criteria
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Fuel consumption
Comfort level
Built quality
Long-term run
ALLOCATING WEIGHTS TO
THECRITERIA
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Fuel consumption………10
Comfort level ...................... 8
Built quality ........................7
Long-term run ..................... 5
DEVELOPING ALTERNATIVES
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HONDA
YAMAHA
SUZUKI
HI-SPEED
ANALYZING ALTERNATIVES
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HONDA
YAMAHA
SUZUKI
HI-SPEED
SELECTING ALTERNATIVE
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HONDA
YAMAHA
SUZUKI
HI-SPEED
IMPLEMENTING
ALTERNATIVE
 SUZUKI
ALLOCATE WEIGHTS TO THE CRITERIA.
If the relevant criteria are not equally important the decision makermust weight the items in order to give
them the correct decision
FUEL
CONSUMPTION
9
COMFORT LEVEL
8
BUILT QUALITY
10
LONG-TERM
5
DEVELOP ALTERNATIVE.
The fourth step in decision making process in which managerdevelop alternative and he solve the
problem with the help of alternative
ANALYZE ALTERNATIVE.
Once alternatives identified decision maker must evaluate each one Abdullah gave each alternative
after some researchon that.
FUEL
COMFORT
HONDA
8
5
9
11
33
YAMAH
A
SUZUKI
6
3
5
9
23
10
7
8
13
38
4
6
5
10
25
HISPEED
QUALITY LONG-TERM TOTAL
SELECT AN ALTERNATIVE.
This step in decision making process in which select the bestalternative or the once that generated
higher total
IMPLEMENT THE ALTERNATIVE.
In this step of decision making process the decision into action by the manager or person who want
to buy the bike.
EVALUATE THE DECISION EFFECTIVENESS.
This is the last step of decision making process in which we see the decision we made is right or not
problem resolved ornot if the problem not resolved we start this whole process again.