Gives you an insight into decision making and its virtues!

1. Anirudh Bapna
14PGDM004
Section A

3. Problem
Definition
Recognizing
Alternative
Solutions
Pros &
Cons
Analysis
Criteria
Selection
Preferred
course of
Action
Decision
Implementati
on
Result
Monitoring
& Revision.

4. Step 1 - Identifying a Problem
problem - discrepancy between an existing and a desired state of affairs
must be such that it exerts pressure to act
manager is unlikely to characterize a situation as a problem unless s/he
has resources necessary to act
◦ Step 2 - Identifying Decision Criteria
decision criteria - what’s relevant in making a decision
◦ Step 3 - Allocating Weights to the Criteria
must weight the criteria to give them appropriate priority in the decision
◦ Step 4 - Developing Alternatives
list the viable alternatives that could resolve the problem without
evaluating them

5. ◦ Step 5 - Analyzing Alternatives
each alternative is evaluated against the criteria
◦ Step 6 - Selecting an Alternative
choosing the best alternative from among those considered
◦ Step 7 - Implementing the Alternative
implementation - conveying the decision to those affected by it and getting
their commitment to it
participation in decision-making process inclines people to support the decision
decision may fail if it is not implemented properly
◦ Step 8 - Evaluating Decision Effectiveness
determine whether the problem is resolved

6. Problem
Identification
“My salespeople
need new computers”
Identification of
Decision Criteria
Price
Weight
Warranty
Screen type
Reliability
Screen size
Allocation of
Weights to
Criteria
Reliability
10
Screen size
8
Warranty
5
Weight 5
Price
4
Screen type
3
Development of
Alternatives
Acer
Compaq
Gateway
HP
Micromedia
NEC
Sony
Toshiba
Implementation
of an Alternative
Gateway
Evaluation
of Decision
Effectiveness
Analysis of
Alternatives
Acer
Compaq
Gateway
HP
Micromedia
NEC
Sony
Toshiba
Selection of an
Alternative
Acer
Compaq
Gateway
HP
Micromedia
NEC
Sony
Toshiba

7.  Decision Timing.
It is the time when the decision is to be made by comparing the benefits and the risks.
 Realistic Decision Constraints.
By understanding constraints one can more realistically select an appropriate and acceptable
solution.
 Critical Thinking Skills.
To improve decision making is to develop critical thinking which help us think clearly,
logically and analytically about the problems we face.
Experience and Expertise
Experience brings the ability to make decisions faster managers also need to develop their
expertise in decision making so that they can recognize the key elements in each problem
Intuition
It is the ability to understand something immediately without the need for conscious
reasoning. We should be intuitive in decision making.
Decision Making Tools

8. IMPERFECT OR INCOMPLETE INFORMATION.
Imperfect or incomplete information is to
withholding information or misinforming others.
INACCURATE IDENTIFICATION OF PROBLEM OR
ALTERNATIVES.
It means When we ask wrong question we can't get
the right answer.
OVER COMMITMENT OR UNDER COMMITMENT.
It means exhibiting no rational escalation of
commitment.
Barriers to Decision Making

9. Train Track &
Children

10. A group of children were playing near
two railway tracks, one still in use
other in disused. Only
one child played on
disused track, the rest
on the operational track

11. The train came, and you were just beside the
track interchange. It was not possible to stop
the train, but you could make the train change
it course to the disused track and saved most
of the children

12. However, that would also mean the lone child
playing with the disused would be sacrificed . Or
would you rather let train go its way ?
Lets take a pause to think what kind of decision
we could make……..

13. Most of the people might choose to divert the
course of the train, and sacrifice only one child. To
save most of the children at the cost of only one
child was rational decision most of the people
would make, morally and emotionally.

14. But have you ever thought the child choosing to
play on the disused track, had in fact made the
right decision to play at a safe place..?
Nevertheless , he had to be sacrificed because
of his ignorant friend who choose to play
where the danger was..

15. The child who choose to play with rest of the
operational track was sidelined . And in the case
he was sacrificed, no one would shed a tear for
him.

16. To make a proper decision is not to change the
course of the train because the children playing on
the operational track should have known very well
that track was still in use and that they should have
run away if they heard the train’s sirens

17. If the train was diverted, the lone child would
definitely die because the train could come over to
that track !
Moreover the track was not in use probably
because it was not safe

18. If the train was diverted to the track, we could put
the lives of all the passengers on board to stake.
And in your attempt to save few children by
sacrificing one child, you might end up sacrificing
hundred of people to save these few children

19. While we all are aware that life is full of tough
decision that need to be made, we may not realize
that hasty decision may always not be the right
one.
“ Remember that what’s right isn’t always popular
…and what’s popular isn’t always right.”