2. Decision Making
• Decision is from the Latin word decidere
which means "to decide or determine,"
• It can be regarded as the mental processes
resulting in the selection of a course of action
among several alternative scenarios and the
output is an action or an opinion
3. Kinds Of Decisions
1. Rational – Optimal Choice
2. Intuitive or Reasonable
3. Decision Support Systems
4. Programmed
5. Non-Programmed
6. Whether
7. Which
8. Contingent decisions
9. Contingent alternatives
4. Decision Making Process
• Define and clarify the issue
• Listing all possible solutions/options.
• Setting a time scale and deciding who is responsible for
the decision.
• Information gathering.
• Weighing up the risks involved.
• Deciding on values, or in other words what is
important.
• Weighing up the pros and cons of each course of
action.
• Making the decision.
5. Types of Problems
• Structured: Constrained problems with
convergent solution
• Unstructured: Multiple solution
• Semi-structured: Certain Factors out of
Control
9. Effective Decision Making
• Take responsibility
• Assess and update your decisions
• Avoid procrastination
• Ask experts in your field
• Examine logic
• Encourage experimentation
• Define short term and long term decisions
