1. Principle of
Management Process
Decision Making
Presented to:
Prof. Aftab Jillani
Presented by:
Aima Masood
MCOM
PUNJAB College
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. 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. 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. 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. 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. 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. 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. 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. Step 5: Analysis of Alternatives
Appraising each alternative’s strengths and weaknesses
Evaluation Using Decision Criteria and Evaluation against Weighted Criteria
