Chapter 6 – Decision Making

 Ahmed Vaseer – Roll#15

 Babar Khan – Roll#14

 Ateeq Rauf – Roll# 25

 Hamid Raza – Roll#23

 Adil Saeed – Roll#26

The word decision is defined as:
“A choice between two or more alternatives”.

Thus decision-making can be defined as:

“the selection of a course of action from among
alternatives”.
 Identifying a problem
 Identifying decision criteria

 Allocating weights to criteria

 Developing Alternatives

 Analyzing Alternatives

 Selecting and Alternative

 Implementing the Alternative

 Evaluation (of Decision Effectiveness)

The business environment has in recent times changed from
being predictable to being unpredictable and from being
simple to being complex. Hence, we require a
transformation in how decisions are made, both individually
and within organizations. As it redefines its role in society,
business must restore trust with its employees and its
customers. Personally, professionally, and organizationally,
it’s time to gain access to all your creative resources and
intelligences so that you can make the decisions you need
to, to prime your company for success in this ever-changing
world.
Programmed Decisions

Decisions
Non-Programmed
Decisions
Structured Problems
Problems
Non - Structured Problems
 Structured Problems - straightforward, familiar, and easily defined
problems.
 A decision that is repetitive and routine
 A definite method for its solution can be established
 Does not have to be treated a new each time it occurs
 Procedures are often already laid out

 Programmed decision – a repetitive decision that can be handled by a

routine approach
 Procedure - a series of sequential steps used to respond to a well-
structured problem
 Rule - an explicit statement that tells managers what can or cannot be
done
 Policy - a guideline for making decisions
 We interviewed Mr. M Sharif Owner of Mashallah
Building Supplier to discuss the Structured Problems and
Programmed Decisions and Unstructured Problems and
Non-programmed Decisions in his organization.
 If
a client wants to get materials on credit, he has to sign an
affidavit with the company. The affidavit will contain the terms
and conditions of the credit like due date and due amount etc.

 For placing an order with the company, the client has to provide
the following information
 Location
 Exact address
 Name
 Order size
 Payment terms
 In addition to all this, the client can also request a sanple
 It is mandatory for sales team to survey the field atleast
three times a week
 It is mandatory for every manager to attend the
strategic meeting on wednesday
The drivers have to meet the following criteria to be hired
by the company

 The driver must have a driving license

 The driver must have an experience of 3+ years

 The driver must be fit for the job as lifting baggage is

part of driver’s JD
 UnstructuredProblems - problems that are new or
unusual and for which information is ambiguous or
incomplete.

 Non-programmed decisions - unique and nonrecurring

and involve custom made solutions.
 Thecompany faced a robbery and a manager was
shot in the leg resulting in serious injury. The company
deployed guards and took security measures including
security cams etc

 In
2016, the army shut down margalla supply of crush
resulting in heavy losses for the company. The company
identified new sites and suppliers for the procurement of
said crush.