2. QUESTION 1
Explain with examples the two type of
decision making?
QUESTION 2
Explain the step in decision making?
3. What is decision making?
• Choices from two or more alternative.
Decision making in organizational.
• The process by which managers respond to
opportunity and treats by analyzing option and
making decision about goals and course of action.
4. TYPE OF DECISION MAKING
NON-
PROGRAMMED
PROGRAMMED
DESICION
DESICION
The decision are made
The same decision
based on information and
have been made
manager’s intuition and
many time before
judgment
Unusual situations that
Routine, almost
have not been often
automatic process
addressed
5. Programmed Characteristics Non-programmed decision
decision
Structured Type of problems Unstructured
Managerial level Lower levels Upper levels
Frequency Repetitive routine New , unusual
Readily available Information Ambiguous / incomplete
Clear , specific Goals Vague
Short Time frame for solution Relatively long
Procedure , rules , Solution relies on… Judgment and creativity
policies
6. • Identifying a problem
1
S • Identifying decision making
2
T
E • Allocating weights to the criteria
3
P • Developing alternative
4
• Analyzing alternatives
O 5
F • Selecting an alternatives
6
• Implementing the alternatives
D 7
M 8 • Evaluating decision effectiveness
7. Identifying a problems
• Problem and characteristic of problems.
Identifying decision making
• Decision criteria are factors that are important to
resolving the problem.
Allocating weight of criteria
• Decision criteria are not equal importance.
Developing alternatives
• Identifying viable alternatives.
8. Analyzing alternatives
• Appraising each alternative’s strengths and weaknesses.
Selecting an alternatives
• Choosing the best alternatives.
Implementing alternative
• Putting the chosen alternative into action.
Evaluating decision effectiveness
• The soundness of the decision is judge by its outcomes.
10. RATIONALITY
A method of systematically selecting among possible
choice that is based on reason and fact.
Step :
1) Determine the problem
2) Conduct research to find possible options
3) Compare the advantages and the disadvantages
4) Choose the right course of actions
5) Design and developing an action plan
6) Analyzing the result
11. BOUNDED RATIONALITY
• Behave rationally within parameters of a
simplified decision- making process that is
limited by an individuals ability to process the
information.
• Consist of action on the basis of sufficient
knowledge rather that complete knowledge
12. INTUITION
Its making decision based on the basic of
experience , feeling and accumulated judgment.
Types of intuition :
1. Primitive instincts
2. Conditioned emotional responses
3. Bodily intuition
4. Mystical intuition
5. Interpersonal intuition
6. Practical intuition
7. Expertise intuition
