Business

Negociation
MC Romeo Alejandro Hernandez de
Santiago
 Unit No. 2

Lesson 3: Decision Making

MC Romeo Alejandro Hernandez de
Santiago
What should *Explain the concept of "decision making"
you know? *Identify the 5 phases of the decision-making process

What can you

do with the Distinguish the stages of the
theory decision making process
learned?
What is decision making?

Decision making is a process that people

go through when they must choose
between different options.

Daily we find situations where we must

choose something, but it is not always
simple.

The decision-making process emphasizes

conflicts that arise and to which a solution
must be found.
 PHASES FOR DECISION MAKING

Five phases of the Decision Making process are identified.

1.- Problem Recognition

In the initial phase the problem we wish to solve is recognized, taking into
account the current state with respect to the desired state, we must also try to
answer the question: What do you want to achieve in this situation?
 PHASES FOR DECISION MAKING

Who and why should you make a decision? What do you want to achieve?
How do you explain the situation?

In the same process of defining the problem, ideas are usually clarified and
organized, and different visions can arise if there are several people
involved.
 PHASES FOR DECISION MAKING

2.- Interpretation of the Problem

Once we have the problem identified we must
make a diagnosis and develop corrective measures.

Then we must identify the criteria for the

interpretation of this and we reach the resolution.

Each person has their decision making and can be

very different from ours and we must compare
them to know which ones are more feasible.
 PHASES FOR DECISION MAKING
A good decision is always based on information
such as:

- Market data
- Internal indicators
- Context analysis
- Employee reports
- Expert advice
- Good practices, among other sources.

The key in this step is to find the minimum

information necessary for a good analysis
 PHASES FOR DECISION MAKING

3.- Problem Attention

Here it is important to analyze as objectively as possible, you should take into
account the maximum background that is available, also be able to specify if it
is a current problem that arose recently, or if it is the result of a development
previous.
 PHASES FOR DECISION MAKING

Even with the same problem, the way to evaluate the alternatives usually
varies, since different people can give priority to different criteria.

For example, to start a business, is profitability or attractiveness for the

entrepreneur more important? Listing the criteria that will be used to weigh the
options simplifies the steps that follow.
 PHASES FOR DECISION MAKING

4.- Action Courses

What are the possible courses of action?

Evaluate the situation from different angles and analyze if there are no
solutions already developed for the problem.

It is time to use creativity to find alternative paths.

 PHASES FOR DECISION MAKING

There are several steps to do it as

“The generation of alternative solutions:

where we can achieve several paths. ”
 PHASES FOR DECISION MAKING
5.- Consequences
What happens if I decide on A? Where does alternative B lead?

With well-identified paths, it is possible to imagine the results, not only in

terms of numbers (costs or profits), but of qualitative aspects such as image,
effort or satisfaction.

Each decision involves learning. Even if the results were not as expected, it is
possible to learn from mistakes so as not to repeat them.
PHASES FOR DECISION MAKING
 Class
What did I learn today?
summary
What skills did you develop
in this class?