1. Presented by:
Malik Ahsan Nadeem (01-171212-038)
Ahmad Kamal (01-171212-044)
Aynur Malik (01-171212-014)
Amna Zafar (01-171212-078)
Saara Sohail (01-171212-060)
2. What is Decision Making?
In its simplest sense, decision-making
is the cognitive process of choosing
between two or more courses of
action.
In the wider process of problem-
solving, decision-making involves
using intuition or reasoning to
choosing between possible solutions
to a problem.
3. Intuition
Reasoning
Intuition is using your ‘gut
feeling’ about possible courses
of action.
It is worth taking your intuition
into account, because it reflects
your learning about life.
It is, however, not always based
on reality, only your
perceptions, many of which
start in your childhood.
Reasoning is using the facts
front of you to make decisions.
Reasoning has its roots in the
here-and-now, and in facts.
It can, however, ignore
emotional aspects to the
decision, and in particular,
issues from the past.
4. Problem solving Decision making
Problem solving vs. decision making
Problem solving is a
complex analytical process
used to identify a possible
solution to the situation at
hand.
Making decisions is a part
of problem solving.
It is a choice made by using
one’s judgment.
You may need to make
numerous decisions as part
of the problem-solving
process.
5. Cognitive thinking stages
Psychologist Jean Piaget (1896-1980), divided cognitive
thinking skills that include decision-making and problem-
solving into 4 stages:
He made the division according to age groups.
We will observe how decision making is done at every stage.
6. Cognitive thinking stages
1. Sensorimotor (Birth to 2 years)
Infants and toddlers make decisions based on
their senses (taste, feel, look, sound, and smell).
Did it work the last time, or not?
2. Preoperational (2–7 years)
Preschoolers make decisions based on how it
will affect them.
No real experience to rely on and cannot see
another person’s point of view. (Egocentric)
Curiosity leads to natural problem solving.
7. Cognitive thinking stages
3. Concrete Operational (7–11 years)
The school-age child is now capable of
logic.
Capable of thinking from different
perspectives.
However decisions are still based on what
they have previously observed and
experienced.
4. Formal Operational (12+ years)
The middle and high school child moves
toward a more abstract type of thinking.
Imagination and intuition play a huge role.
They don’t need to experience something
in order to understand it.
8. Cognitive thinking stages
5. Post-formal thinking
Adult thinking is logical like formal
operational thinking
But is more personal, integrative and
practical,
So every factor (Intuition, Experience,
Emotion) goes into the decision
making process.
9. Types of Decision-Making Styles
Directive
The directive decision-making style
uses quick, decisive thinking to come
to a solution.
A directive decision-maker has a low
tolerance for unclear or ambiguous
ideas.
They are focused on the task and will
use their own knowledge and
judgment to come to a conclusion.
10. Types of Decision-Making Styles
Analytical
Analytical decision-makers carefully
analyze data to come up with a solution.
They are careful and adaptable thinkers.
They will invest time to glean information
to form a conclusion.
These decision-makers are task-oriented,
but have a high tolerance for ambiguity.
11. Types of Decision-Making Styles
Conceptual
These people are big picture thinkers who
are willing to take risks.
They evaluate different options and
possibilities with a high tolerance to
ambiguity.
Their conclusions come from visualizing
different opportunities and outcomes for
the future.
They are strong in making long-term
decisions.
12. Types of Decision-Making Styles
Behavioral
A behavioral style of decision-making focuses
on relationships more than the task.
These decision-makers rely on information
from others to guide what they choose.
Their decisions are often based on how the
choice will impact relationships.
13. Steps in Decision Making
Step 1: Identify the decision
You realize that you need to make a
decision.
Try to clearly define the nature of the
decision you must make.
Step 2: Gather relevant information
Collect all the pertinent information before
you make your decision.
This step involves both internal and
external “work.” internal is gained through
self-assessment, while external comes
from people, internet, books and other
sources.
14. Steps in Decision Making
Step 3: Identify the alternatives
As you collect information, you will
probably identify several possible
paths of action, or alternatives.
In this step, you will list all possible
and desirable alternatives.
Step 4: Weigh the evidence
Draw on your information and
emotions to imagine what it would be
like if you carried out each of the
alternatives to the end.
As you go through this difficult
internal process, you’ll begin to favor
certain alternatives.
Finally, place the alternatives in a
priority order, based upon your own
value system.
15. Steps in Decision Making
Step 5: Choose among alternatives
Once you have weighed all the
evidence, you are ready to select the
alternative that seems to be best.
You may even choose a combination
of alternatives.
Step 6: Take action
You’re now ready to take some
positive action by beginning to
implement the alternative you chose.
16. Steps in Decision Making
Step 7: Review your decision & its
consequences
In this final step, consider the results of
your decision
Evaluate whether or not it has resolved the
need you identified in Step 1.
If not repeat certain steps of the process to
make a new decision
17. Factors affecting decision making
Personal factors
Personal Demographics: age, gender, stages in
life cycle, education, occupation, economic
position, etc.
Personal psychographics: includes lifestyle,
attitudes, self-concept, concern about status,
value systems, beliefs etc.
18. Factors affecting decision making
Cultural factors
Culture: combined resulted of factors like
religion, traditions, taboos, language, education,
upbringing, established pattern of social
behavior, values (core & secondary)etc.
Sub culture: caste or social class: education
level, wealth, occupation, profession &
designation, location of residence, and values.
19. Factors affecting decision making
Information
Too much information or information
over-load creates confusion & delay in
decision making.
Too little information creates doubts and
insecurity.
Information, should be authentic and
adequate and must be available at time.
20. Factors affecting decision making
Psychological factors
Motivation: it all begins with needs
Emotion: too much emotional attachment or
detachment has far reaching consequences
Memory Process: include past experiences
even the hearsay experiences. People do
change their beliefs, faiths, likes & dislike which
happens through learning .
It is therefore worth examining your gut feeling closely, especially if you have a very strong feeling against a particular course of action, to see if you can work out why, and whether the feeling is justified.
Intuition is a perfectly acceptable means of making a decision, although it is generally more appropriate when the decision is of a simple nature or needs to be made quickly.
Child and a toy.
This type of thinking continues to develop into adulthood.
The individual’s life experiences influence this level of decision-making.