THE DECISIONAL PROCESS

The Components of the Decisional Process The decident (s) The decisional alternatives The decisional criterias The evaluation criterias Business Environment The consequences The objectives

The steps of the decisional process Recognizing and defining the situation Identifying alternatives Evaluating alternatives Selecting the best alternative (THE DECISION) Implementing the chosen alternative Follow-up and evaluation

Decisional Models The Classical Model The Administrative Model managers should have complete and perfect information managers should eliminate uncertainty managers should evaluate everything logically and rationally The Administrative Model managers have incomplete and imperfect information managers are constrained by bounded rationality managers tend to satisfice

Types of decision (1) Decision-Making Frecquency : Programmed Decisions Nonprogrammed Decisions Decision-Making Conditions: Decision Making Under Certainty Decision Making Under Risk Decision Making Under Uncertainty Decision-Making Time Horizons : Strategic Decision Tactical Decision Operational Decision

Types of decision (2) Decision-Maker Number: Individual Decisions Group Decisions - Interacting Groups (brainstorming) - Delphi Groups - Nominal Groups Decision-Making Level: Centralised Decisions Decentralised Decisions