Objective 3.02: Utilize critical-thinking skills to determine best options/outcomes. Making Decisions

Decision Making Choosing among alternatives. Anyone can learn how to do it. We can apply a process The more often we use the process the more natural it seems.

Who is involved? The Business Person with Minimum Input Moderate Input Maximum Input

Minimum Input The decision maker makes the decision without help. Example You are in charge of planning the company’s potluck picnic. You don’t need help deciding who to invite. It is a company picnic so you invite the employees.

Moderate Input The decision maker asks for some input before make the decision. Example When you need to decide where to hold the picnic, it may be helpful to ask the employee steering committee for suggestions.

Maximum Input The decision maker and the entire group decide together. Example Since you are having a potluck meal, you need input from the entire group to coordinate who is bringing what.

Decision Making Process Pinpoint your objective Determine what you need to know Gather the information you need Select an appropriate decision-making style Establish decision criteria Identify alternatives Weigh the pros and cons Make the decision Evaluate the decision’s success

Decision Making Process (cont.) Pinpoint your objective Who needs to make the decision? What do you hope to accomplish? Why do you need to make the decision? When do you need to make the decision?

Decision Making Process (cont.) Determine what you need to know What information will you need? Where can you get the information?

Decision Making Process (cont.) Gather the information you need Personal knowledge Business records Outside research

Decision Making Process (cont.) Select an appropriate decision-making style Minimum Moderate Maximum

Decision Making Process (cont.) Establish decision criteria On what are you basing the decision? Quantitative criteria Cost, Potential profit, Time Qualitative criteria Quality of data/information Quality of decision Tradition

Decision Making Process (cont.) Identify alternatives Doing nothing is always a decision Make sure you identify enough alternatives Sometimes the most difficult task

Decision Making Process (cont.) Weigh the pros and cons What is good about each alternative? What is bad about each alternative? Cost, time, effort, benefit

Decision Making Process (cont.) Make the decision Choose the best option Know why you made that decision Put the decision into operation

Decision Making Process (cont.) Evaluate the decision’s success Were the results successful? If not, where did you go wrong? Did the process work?