MAKING DECISIONS

Objective To be able to: Explain and apply organisational decision processes

Activity Identify three decisions you are involved in. Write down how one of these decisions is made.

Decision-making Process Formulate the problem Construct a model to represent the problem Use the model to generate the solution

Models Rational decision-making Limited rationality model Logical incrementalism Emergent decisions

Rational decision-making Define the decision Establish the objectives Classify the objectives (must/want) Define the musts (objective measurement) Define the wants (weighting) Generate alternatives Test alternatives against “musts” Score remaining alternatives against “wants” Select best alternative

Limited rationality model Search for a solution Stop when a feasible solution is obtained Used for: Higher level decisions Conflicting objectives Incomplete information Qualitative factors

Logical incrementalism Follow-up to limited rationality decision Refine decision as you proceed

Emergent decisions Piecemeal and unstructured Decision-making is a continuing process Suitable for higher level decisions

Preparing for decision-making List alternatives Details about alternatives List advantages/disadvantages of alternatives List criteria for making decision Analyse advantages/disadvantages Draw conclusions from analysis Analyse risks Plan implementation Identify obstacles to implementation Make recommendation

Preparing for decision-making List alternatives Details about alternatives List advantages/disadvantages of alternatives List criteria for making decision Analyse advantages/disadvantages Draw conclusions from analysis Analyse risks Plan implementation Identify obstacles to implementation Make recommendation Like articles in “Which” magazine