Lecture 13
Decision-Making
EE-PC 322 Management of Engineering Projects
OBJECTIVES:
1. Cite the importance of decision-making in day
to day living and in the organization
2.Define decision-making
3.Describe the steps in decision-making process
What major decisions have you made?
The process of identifying a problem, selecting a solution, and
evaluating the effectiveness of the solution. – Robbins &
Decenzo
According to Nickels and others, “is the heart of all
management functions.”
1
• Identification of the problem
2
• Identification of decision criteria
3
• Allocation of weights to criteria
4
• Development of alternatives
5
• Analysis of alternatives
6
• Selection of alternatives
7
• Implementation of alternatives
8
• Evaluation of decision alternatives
• A problem is a discrepancy between an existing and a
desired state of affairs.
• “Identification of the problem is tantamount to having the
problem half-solved.”
• Identification of decision criteria important in solving the
problem
• Decision criteria are factors relevant in a decision
• “what is not identified is as important as what is”
• The criteria are not all equally important
• Allocate weights to items listed in step 2 according to their
priority
Criterion
Comfort
Durability
Price
Design
Weight
10
8
8
6
• Decision maker lists alternatives that could resolve the
problem.
• Each alternative is critically analyze in terms of its strengths
and weaknesses and are compared with the criteria and
weights that were established in steps 2 and 3.
Alternatives
Comfort
10
Durability
8
Price
8
Design
6
TOTAL
Gibi
7
70
8
64
10
80
10 60
274
Rusty Lopez
8
80
9
72
10
80
8
48
280
Alberto
10 100
10
80
7
56
8
48
284
• Choose the alternative that generated the
highest score
• Decision implementation is putting the decision into action;
includes conveying the decision to the persons who will be
affected by it and getting their commitment to it.
• Appraise the result of the decision to see whether it has
corrected the problem.
• Did the chosen alternative accomplished the desired result?
• Appraise the result of the decision to see whether it has
corrected the problem.
• Did the chosen alternative accomplished the desired result?
QUESTIONS
• Create a Decision making Criteria and weight in buying a
School Bags
Criterion
Weight
Comfort
10
Durability
8
Price
8
Design
6
Alternatives
Comfort
10
Durability
8
Price
8
Design
6
TOTAL
Gibi
7
70
8
64
10
80
10 60
274
Rusty Lopez
8
80
9
72
10
80
8
48
280
Alberto
10 100
10
80
7
56
8
48
284
END