The document outlines the steps in the decision making process as defined by Ponmuthu S. and Daniel R. The 8 step process includes: 1) defining the problem and goals, 2) identifying decision criteria, 3) allocating weights to criteria, 4) gathering alternatives, 5) evaluating alternatives, 6) selecting the best alternative, 7) implementing the alternative, and 8) evaluating the decision's effectiveness. Key aspects of each step are described, such as using decision criteria, assigning weights based on importance, evaluating alternatives based on factors like feasibility and costs, and monitoring the implemented alternative. The overall process is meant to help decision makers systematically analyze problems and select optimal solutions.
3. What is a Decision?
Choice between two or more
alternatives
If you only have one
alternative, you do not have a
decision.
4.
5. Decision Making
“Decision-making involves the
selection of a course of action from
among two or more possible
alternatives in order to arrive at a
solution for a given problem”.
Decision making process is a
consultative affair done by a comity of
professionals to drive better
functioning of any organization
7. Decision Making Process
The step by step method for taking
decisions
A decision maker should follow these
steps before taking decisions
8. Define the Problem
Gather facts and develop alternatives
Evaluate Alternatives
Select the best alternative.
Implement the chosen Alternative
Follow up and evaluate the chosen
alternative.
The Decision Making Process
9. Identify The Problem
Problem :
A discrepancy between an existing and
desired state of affairs
Characteristics :
A problem becomes a problem when a
manager becomes aware of it
there is a pressure to solve the problem
the manager must have the authority,
information, or resources needed to solve
the problem.
10.
11. Decision criteria are factors that are
important ( relevant) to resolving the
problem.
Costs that will be incurred (investment
required).
Risks likely to be encountered ( chance of
failure).
Outcomes that are desired ( growth of the
firm).
Identify The Decision Criteria
12. Decision criteria are not of equal
importance:
Assigning a weight to each item.
Places the items in the correct
priority order of their importance in
the decision making process.
Allocating Weights to the
Criteria
13. Generate Alternative Solutions
A problem can be solved by
different alternative solutions
Develop alternative solutions
Think on all the alternative possible
solutions
14. Evaluate And Choose Among
Alternative Solutions
Feasibility
Acceptability
Costs
Ethics
Quantitative or qualitative
approaches
Forecast the result
15. Choosing the best alternative
The alternative with the highest total
weight is chosen.
The best alternative is the one that
produces the most advantages and
the fewest serious disadvantages.
Sometimes, the optimal solution is a
combination of several alternatives.
Selecting The Alternative
16. Implement And Monitor The
Chosen Solution
Reveals its effectiveness and significance
in achieving the desired goals
Depends on careful planning and
sensitivity
To ensure that the alternative put into
action is moving towards the objectives
Confirms that the organization goals
have been achieved.
17. 1 • Define the Problem,objectives & goals
2 • Identify The Decision Criteria
3 • Allocating Weights to the Criteria
4 • Gather facts and develop alternatives
5 • Evaluate Alternatives
6 • Select the best alternative
7 • Implementing the Alternative
8 • Evaluate the decision’s effectiveness
18. Decision Making Process
Always continuous & dynamics
It is not only a process and also a
practice
A good decision maker will be the good
manager
Be a best decision maker.., Be a best
manager