Decision Making

                                            Decision Making

        Roadmap

  • Understanding Decision making
  • Types of decisions
  • The decision making process
  • How to make better decisions

Understanding Decision Making

  • Problems
    • A discrepancy between a desirable and an actual situation.
    • Well structured, ill-structured, and complex problems.
    • Decision
    • A choice made between available alternatives.
    • Decision Making
    • The process of developing and analyzing alternatives and choosing from among them.

Types of Decisions

  • Programmed Decision
    • A decision that is repetitive and routine and can be made by using a definite, systematic procedure.
    • Nonprogrammed Decision
    • A decision that is unique and novel.”

The Decision-Making Process

  • Define the problem.
  • Clarify your objectives.
  • Identify alternatives.
  • Analyze the consequences.
  • Make a choice.

Step 1. Define the Problem

  1. Start by writing down your initial assessment of the problem.
  2. Dissect the problem.
    1. What triggered this problem ?
    1. Why am I even thinking about solving this problem?

Step 2. Clarify Your Objectives

  1. Write down all the concerns you hope to address through your decision.
  2. Convert your concerns into specific, concrete objective

Step 3. Identify Alternatives

  1. Generate as many alternatives as you can yourself.
  2. Expand your search, by checking with other people, including experts

Step 3. Identify Alternatives

  1. Generate as many alternatives as you can yourself.

2. Expand your search, by checking with other people, including experts

Step 4. Analyze the Consequences

  1. Mentally put yourself into the future.
  2. Eliminate any clearly inferior alternatives.

Step 5. Make a Choice

  • Analyses are useless unless the right choice is made.
    •  Simply review the consequences of each alternative, and choose the alternative that maximizes benefits.
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How To Make Better Decisions

  1. Increase Your Knowledge
    1. Ask questions.
    1. Get experience.
    1. Use consultants.
    1. Do your research.
  2. Use Your Intuition
    1. A  process whereby a person instinctively makes a decision based on his or her accumulated feeling.knowledge and experience.

How To Make Better Decisions

  • Weigh the Pros and Cons(positive and Negative)
    • Quantify realities by sizing up your options, and taking into consideration the relative importance of each of your objectives.
  • Don’t Overstress the Finality of Your Decision
  • Make Sure the Timing Is Right