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CH 2: Decision Making Process

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by

Silviana Falcon

on 9 September 2016

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Transcript of CH 2: Decision Making Process

Decision Making Process: Why is a process important
Decision: making a choice from two or more options

Step 1:
ID Problem

manager identifies the issue as a problem
there is pressure to resolve the problem
manager must have the authority, information, or resources needed to solve the problem
Step 2:
ID Decision Criteria
Factors that are important (relevant to resolving the problem)
Costs
Risks
Desired outcomes
Step 3:
Allocate Weights
Decision criteria are not of equal importance, Assigning a weight to each item gives the item the correct priority.
How?
10 = Most Important
1 = Least Important
Step 4
Developing Alternatives
Identify viable alternatives and listing them without evaluation.
Step 5:
Analyzing Alternatives
Evaluate each alternative's strengths and Weaknesses. This step requires the decision maker to multiply each alternative by the assigned weight. This process achieves a weighted criteria.
Step 6:
Selecting An Alternative
Involves the selection of the best alternative or the one that generated the highest total in
Step 5.
Step 7: Implementing the Alternative
Putting the decision in action
Step 8: Evaluating Decision Effectiveness
The soundness of the decision is judged by its outcomes.
Was the problem resolved?
PDA
DASIE
Full transcript