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Decision Making Process

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Decision Making Process

  1. 1. Principle of Management Process Decision Making Presented to: Prof. Aftab Jillani Presented by: Aima Masood MCOM PUNJAB College
  2. 2. Introduction: Decision making can be regarded as the mental processes resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice. The output can be an action or an opinion of choice.
  3. 3.  Problem Analysis vs. Decision Making It is important to differentiate between problem analysis and decision making. The concepts are completely separate from one another. Problem analysis must be done first, then the information gathered in that process may be used towards decision making.  Decision Making Process: In general: “Decision making is the process of making a choice between a numbers of options and committing to a future course of actions.
  4. 4. Decision making Steps: • There are eight steps of decision making: • Identification of problem • Identification of decision Criteria • Allocating weight to criteria • Develop alternatives • Analysis of Alternatives • Selection of alternatives • Implementation of the best alternatives • Evaluation of decision effectiveness
  5. 5. Problem The decision-making process begins when a manager identifies the real problem. The accurate definition of the problem affects all the steps that follow; if the problem is inaccurately defined, every step in the decision-making process will be based on an incorrect starting point. One way that a manager can help determines the true problem in a situation is by identifying the problem separately from its symptoms. The most obviously troubling situations found in an organization can usually be identified as symptoms of underlying problems.
  6. 6. Step 1: Identification of a Problem A problem is defined as a discrepancy between an existing and a desired state of affairs. Some cautions about problem identification include the following: 1. Make sure it’s a problem and not just a symptom of a problem. 2.Problem identification is subjective. 3.Discrepancies can be found by comparing current results with some standard. 4.Managers aren’t likely to characterize a discrepancy as a problem if they perceive that they don’t have the authority, information, or other resources needed to act on it. So the problem we are identifying is to get a job in a school with maximum salary and benefits.
  7. 7. Step 2: Identification of Decision Criteria Decision criteria are factors that are important (relevant) to resolving the problem: So the factors which are relevant in solving our problems are: 1) Salary 2) Opportunity to progress 3) Job Env0irment 4) Incentives 5) Facilities 6) Job securities 7) Locati0n 8) Timings
  8. 8. Step 3: Allocation of Weights to Criteria Step 3 is allocate weights to the criteria. The criteria identified in Step 2 of the decision-making process aren’t all equally important, so the decision maker must weight the items in order to give them correct priority in the decision. Criterion Weights Salary..................................................................................................... ............10 opportunity to progress.........................................................................................07 Job Env0irment................................................................................................ .06 Incentives................................................................................................. .........08
  9. 9. Step 4: Development of Alternatives Identifying viable alternatives Alternatives are listed (without evaluation) that can resolve the problem Name of schools 1) Unique 2) American Lycetuff 3) LDA 4) Allied 5) cathedral
  10. 10. Step 5: Analysis of Alternatives Appraising each alternative’s strengths and weaknesses Evaluation Using Decision Criteria and Evaluation against Weighted Criteria
  11. 11. Evaluation Against Weighted Criteria Salary opportunity to progress incentives job environment facilities job securities locations timings Total Unique 80 24 40 30 49 24 81 64 396 American lycetuff 100 42 48 48 49 36 81 64 468 3) LDA 60 35 0 24 49 30 64 64 326 4) Allied 70 42 0 48 49 30 56 64 359 5) cathedral 90 49 48 48 42 36 36 64 413
  12. 12. Salary opportunity to progress incentives job environment facilities job securities locations timings Total Unique 80 24 40 30 49 24 81 64 396 American lycetuff 100 42 48 48 49 36 81 64 468 LDA 60 35 0 24 49 30 64 64 326 Allied 70 42 0 48 49 30 56 64 359 cathedral 90 49 48 48 42 36 36 64 413

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