Decision Making

Group Members:

Imran Muzamil (0064) Fiaz Riaz (0014) M.Umer (0116)

Decision Making

Topic:Decision Making Steps

Imran Muzamil Reg no. (0064)

Decision Making

Definition:

A choice between two or more then twoalternatives is called decision

Decision Making Steps:

Decision Making steps”

Identify the Problem:

When making a decision a personfirst needs to identify and define the problem or conflict.

Decision Making steps:

Identify Decision Criteria:

When a problem identified, the decision criteria important to resolving the problem must be identified. That is, managers must determine what is relevant in making decision.

Decision Making steps:

Allocation of Weights to criteria:

If the relevant criteria are not equally important, the decision maker must weight the items in order to give them the correct priority in the decision. 

Decision Making steps:

Development of Alternatives:

The fourth step in decision making process requires the decision maker to list viable alternative that could resolve. The problem this is the step where a decision maker needs to be creative.

Decision Making steps:

Choose One alternative:

After making all the alternatives, the next step in planning or in decision making is to evaluate these alternatives. Evaluation is required in order to select the best alternative for implementation.

Decision Making steps:

Implementation of the Alternative:

After choosing best alternative decision in to action by conveying it to those effected and getting their commitment to it.

Decision Making steps:

Evaluation of Decision effectiveness:

The last step the decision making Process involve evaluating the outcome or result of the decision to see if the problem is resolve.

Decision Making

Topic:Manager Making Decisions & Types of Decision Making

Fiaz RiazReg no.(0014)

Decision Making

Rationality:A type of decision making in which choices are logical consistent and maximize value.Bounded Rationality:Decision making that's rational but limited(bounded)by an individuals ability to process information.Intuition:Making decision on the basis of experience, and

accumulated judgment.

Types of Decision Making

Structured Problem:A straightforward, familiar and easily defined problem.

Problem Decision:A repetitive decision that can be handled using a routine approach.

Types of Decision Making

Unstructured Problem:A problem that is new or unusual and for which information is incomplete.

Non Programmed Decisions:A unique and nonrecurring decision that requires a custom made solution.

Decision Making Conditions

Certainty:Implies perfect information. All relevant information tothe problem is known.Risk:Implies partial information. Some of all the relevantinformation to the problem is stochastic.Uncertainty:Implies incomplete information. Some of all the relevant information to the problem is missing.

Decision Making

Topic:Decision Making Biases & Errors

M.Umer Reg no.(0116)

Decision Making Biases & Errors

Decision Making Bias:Decision making bias is giving a undueinfluence to any one in between two equalthings.

Decision Making Error:In Decision making error is a occurrence of

any thing with out knowing.

Decision Making Biases & Errors

Overconfidence Bias:In overconfidence bias a manager think that he will do every thing but real thing some time opposite.

Immediate Gratification:Immediate Gratification describes a manager want toimmediate reward.He will prefers Rs.100 of today other then Rs.200 of future.

Decision Making Biases & Errors

Availability Bias:In Availability bias a manager to base their judgment on information that is readily available to him.E.g. A person fear from Air travel and also car driving.Media report show much more attention on aero plan crash is 10% and 8% car accident & he will understatecar accident and travel in car. Representative Bias: In representative bias a person see another person's

representative performance and predict that he can also this do this work.

Decision Making Biases & Errors

Escalation Bias: Escalation of commitment refers to staying with a

decision even when there is clear evidence that is wrong.

Selective Perception: When decision maker selectively organize and

interpret a decision on the base of his perception.

Decision Making Biases & Errors

Randomness Error: Most of the managers believes that

they have some control over the world and destiny. And if we undoutly control a good part of event but truths is world always having Random events .

And our tendency to believe we can predict future event.