BY
Muhammad Suleman
MBA
MIT
BSC (COMPUTER)
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What is decision Making
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Why decision Making
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Conditions under which decision are made
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What is Rational Decision Making
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Process of Rational Decision Making
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Programmed and Non Programmed Decision
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Creativity and Innovation
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What is brainstorming
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Who are creative Managers
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A decision is a choice made from two or more alternatives.
Decision making is the process through which managers
identify organizational problems and attempt to resolve
them
Decision making is the study of identifying and choosing
alternatives based on the values and preferences of the
decision maker.
Making a decision implies that there are alternative
choices to be considered, and in such a case we want not
only to identify as many of these alternatives as possible
but to choose the best one.
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Decision making is the process of sufficiently
reducing uncertainty and doubt about
alternatives.
The above definition stresses the information
gathering function of decision making.
The more you will collect information about the
alternatives , the more you will make the best
decision.
The decision is the outcome of the information.
There are several basic kinds of decisions:
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Decisions whether
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Decisions which
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Contingent decisions
Decisions whether
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This is the yes/no, either/or decision that
must be made before we proceed with the
selection of an alternative.
Should I buy a new TV?
Should I travel this summer?
Decisions which:
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These decisions involve a choice of one or
more alternatives from among a set of
possibilities.
Contingent decisions:
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These are decisions that have been made but
put on hold until some condition is met
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Decision making makes it possible to adopt the best
course of action in carrying out a given task. When there
are different ways of performing a task, it becomes
necessary to find out the best way and that is what
decision making is all about
Decision-making helps to find a solution to any problem
in a work place. For example, if an organization faces the
problem of low productivity, such a problem cannot be
ignored and it becomes necessary to find a remedy. To
find a remedy, the actual cause of the problem must be
identified after which corrective action may be taken. If
negative employee attitude is found to be the root cause
of low productivity, the management may have to decide
on the right course of action to be adopted to change such
a negative attitude
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Decision-making helps to identify the best course
of action in each given situation and thereby
promotes efficiency. The course of action finally
selected should be acceptable to both the workers
and the management. Satisfied workers put in their
best efforts and this result in higher output. Higher
output satisfies the management and it may come
forward to share the gain with the workers. Thus,
there is improvement in the overall efficiency of the
organization.
The conflicts in an organization are resolved
through decisions
The conditions are as follow:
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Certainty
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Risk
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Uncertainty.
Certainty
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in this case you are sure or you expect that every thing
will be done according to the plan.
Risk
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Here we attach some weights to the alternatives
Uncertainty.
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In this case we make some decisions but we are not sure
that it will work accordingly or not.
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The Rational Decision Making Model is a process for
making logically sound decisions.
The process is one that is logical and follows the
orderly path from problem identification through
solution
This method would evidently not be used for every
decision within the everyday operations of an
organization
However, the method would be applicable to major
efforts within the problem solving and solution
finding area such as team efforts
The process is as follow:
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Define or Identify the problem
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Generate Alternatives
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Evaluate and Choose an alternative
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Implement and monitor
Define or Identify the problem
 A problem is defined as a gap between an
existing and a desired state of affairs.
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Here in first step we go for getting main problem
that is why the things are not working properly.
E.g. if you are making some products for
customers, if you are not getting revenue against
it so go and find out what is the problem either
there is some problem in price, quality durability
etc….
Generate Alternatives:
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In this step we go for collecting the information.
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The question arises that how will we collect the information so
for that we have a technique that is Brainstorming.
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Brainstorming is the process of gathering the ideas in order to
solve the problems.
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The principle of brainstorming is not to criticize the ideas of any
person.
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If you are going to generate alternatives so generate as many as
you can, because it will help you to make a best decision.
Evaluate and Choose an alternative
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In this step we evaluate the alternatives that
is either the alternatives are feasible or not.
So here we provide some weights to the
alternatives.
Or here we go for finding the merits and
demerits of the alternatives.
Evaluate and Choose an alternative
After evaluating the alternatives we will choose
the best one.
So alternatives that has been chosed must be
ethically sound.
Implement and monitor
After selecting your alternative, bring it into the
practical sense that is implement it.
If you have made a decision and not implementing so
your decision is meaningless.
In order to find out the effect of decision it is very
much necessary to implement it.
During or after implementing decision you can easily
monitor the decision, if you need some change in
your decision so you will make and so on……
Programmed Decisions:
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are those made in routine, repetitive, well
structured situations through the use of
predetermined decision rules.
Computers are an ideal tool for dealing with
several kinds of complex programmed decisions
Most of the decisions made by first-line
managers and many by middle managers are
Programmed decisions.
Non Programmed Decision:
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are those for which predetermined decision
rules are impractical because the situations
are novel and/or ill-structured.