lecture # 01 introduction to decision making

ITRODUCTION TO DECISION MAKING

Dr. Akhlas AhmedPreston University

MBA Class, Lecture # 01June 21st 2014

DECESION MAKING…

Please write a one sentence definition of decision making.

DECESION MAKING…

The process of examining your possibilities options, comparing them, and choosing a course of action.

DECESION MAKING…

Be sure you are right ----then go ahead: Davy Crocket

MAKING EFFECTIVE DECISIONS…

Factors that may effect on effective decision Goals Perception Priority Values Acceptability Demands Risk Style Resources Judgment

GOALS

PERCEPTION

PRIORITY

VALUES

ACCEPTABILITY

DEMANDS

RISK

STYLE

RESOURCES

JUDGEMENT

SIX C’s OF DECESION MAKING

1. Construct

2. Compile

3. Collect

4. Compare

5. Consider

6. Commit

CONSTRUCT…

Construct a clear picture of precisely what must be decided

COMPILE…

Compile a list of requirements that must be met.

COLLECT…

Collect information on alternatives that meet the requirements.

COMPARE…

Compare alternatives that meet the requirements.

CONSIDER…

Consider the “what might go wrong” factor with each alternative.

COMMIT…

Commit to a decision and follow through with it.

INHERENT PERSONAL TRAPS…

1. Trying too hard to play it safe.

2. Letting fears and biases tilt your thinking and analysis.

3. Getting lost in the minutia can cause trouble.

4. Craving for unanimous approval.

5. Trying to make decisions which are outside your realm of authority.

INHERENT SYSTEM TRAPS…

1. Willing to begin with too little, inaccurate, or wrong information.

2. Overlook viable alternatives or waste time considering alternatives which have no

realistic prospects.

3. Not following the six C’s

4. Failure to clearly define the results you expect to achieve.

5. Worst of all, failure to reach a decision.

DECESION MAKING IN MANAGEMENT…

RECOMMENDED TEXT BOOKS

Making Management Decisionsby Cooke and Slack:

Prentice Hall International

Thanks