DECISION MAKING

PRESENTATION BY : GROUP A-2

WHAT IS DECISION MAKING



DEFINITION : As defined by Baker et al in their 2001 study, efficient decision-making involves a series of steps that require the input of information at different stages of the process, as well as a process for feedback.

FACTORS AFFECTING QUALITY OF A DECISION

  

Data used to reach the decision The system which exists to implement Is only good if you have the means to implement it Is only good if other people understand it and what it means

IDEAL DECISION MAKING PROCESS

STEP 1 Define the problem STEP 2 Determine the requirements that the solution to the problem must meet STEP 3 Establish goals that solving the problem should accomplish STEP 4 Identify alternatives that will solve the problem

IDEAL DECISION MAKING PROCESS

STEP 5  Develop valuation criteria based on the goals STEP 6  Select a decision-making Tool STEP 7  Apply the tool to select a preferred alternative STEP 8  Check the answer to make sure it solves the problem

QUANTITATIVE AND QUALITATIVE FACTORS IN DECISION MAKING



QUANTITATIVE FACTORS:
1. 2. 3.

BREAK EVEN ANALYSIS MARKET RESEARCH SALES FORECASTING

QUALITATIVE FACTORS
1. 2. 3. 4.

SWOT ANALYSIS HRM PEST STAKEHOLDER ANALYSIS

QUANTITATIVE FACTORS


Provide a numerical basis for decision making reduces decisions to looking at a monetary value placed on different choices, e.g.
 

Forecasted sales figures for the next 3 years The cost of a series of redundancies against the longer term financial benefits to the firm of this process

QUALITATIVE FACTORS


Qualitative factors look to take account of these other issues that may influence the outcome of a decision Can be wide ranging and especially need to consider the impact on human resources and their response to decisions

QUALITATIVE FACTORS


SWOT ANALYSIS

IT IS A STUDY OF FOLLOWING FACTORS:

   

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

PEST

IT IS A STUDY OF FOLLOWING FACTORS

   

POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL

CONCLUSION


Efficient decision-making involves a series of steps that require the input of information at different stages of the process, as well as a process for feedback Steps involved in decision making is a cycle from understanding the problem to solving it and taking feedback and verifying that problem is solved Eventual decision may rest on the balance between the perceived effects of quantitative and qualitative

Thank you