By:

Qadeer Ahmed
BS(CIS)2008-12

Presentation Layout

Definition
The nature of managerial decision making
Types of problems decision makers face
Differences in decision making situations
Models of decision making
Steps in an effective decision making process
Overcoming barriers to effective decision
making
Managing diversity: group decision making
Summary and Conclusions

Definition
The act of making up your mind about
something, or a position or opinion or
judgment reached after consideration.
The process of selecting from several
choices, products or ideas, and taking
action.

Four Functions of Management

An effective decision
making includes following
four steps

1-8

Four Functions of Management

Planning
Choose Goals

Organizing

Controlling

Working together

Monitor & measure

Leading
Coordinate

Types of problems decision makers face

Managerial decision making typically
centers on three types of problems:
Crisis
A crisis problem is a serious difficulty requiring immediate action.

Non-Crisis
A non-crisis problem is an issue that requires resolution but does not
simultaneously have the importance and immediacy characteristics of a
crisis.

Opportunity Problems.
An opportunity problem is a situation that offers strong potential for
significant organizational gain if appropriate actions are taken.

Differences in decision making situations

There are two situation
Programmed Decision Making
Programmed Decisions are those made in routine, repetitive, wellstructured situations through the use of predetermined decision rules.

Non-Programmed Decision Making

Non-programmed Decisions are those for which predetermined decision
rules are impractical because the situations are novel and/or relatively ill
structured.

1-14

Three Levels of Management

Top
Managers

Middle
Managers
First-line Managers
Non-management

Three Levels of Management

Comparison of Decision making situation and management levels

Three Stages of the Planning Process

Determining the Organizations
mission and goals
(Define the business)

Strategy formulation
(Analyze current situation &
develop strategies)

Strategy Implementation
(Allocate resources & responsibilities
to achieve strategies)

Models of decision making

Rational Model
Most popular type of model
Based around a cognitive judgment
Pros and cons of various options

Non-Rational Models
Satisficing Model
Incremental Model
Garbage-Can Model

Models of decision making cont.

Satisficing Model
Managers seek alternatives
One that looks satisfactory
Not seeking the optimal decision.

Incremental Model
Managers make the smallest response possible
This reduce the problem to at least a tolerable
level.

Models of decision making cont.

Garbage-Can Model
Managers behave in virtually a random pattern

Steps in an effective decision making process

Four steps for effective decision making

Overcoming barriers to effective decision making

Means of overcoming D.M. barriers

Accepting the problem challenge
Searching for sufficient Alternatives
Recognizing common Decision Making Biases
Avoiding the Decision Escalation Phenomenon

Managing diversity
Group Decision Making
Decision Making by more than one person
Usually followed in organizations
It has some advantages and some disadvantages

Outlines

Definition
The nature of managerial decision making
Types of problems decision makers face
Differences in decision making situations
Models of decision making
Steps in an effective decision making process
Overcoming barriers to effective decision
making
Managing diversity: group decision making

Summary and Conclusions

Decision making is the process through which
managers identify organizational problems and
attempt to resolve them.
There are three types of Problems Managers face
Situation differ in Decision Making Process
Managers follow different types of models during
decision making
Managing diversity

Questions????

Thanks
for your patience