LESSON 3 DECISION MAKING PROCESS Prepared by: Prof Ayza Valdez
DECISION Is a choice that is made available from a number of available alternatives
THE FOUR STEP DECISION MAKING PROCESS
STEP 1 IDENTIFY THE NEED FOR A DECISION The manager recognizes the problem or an opportunity. Programmed Decisions- involve choosing a standard alternative in response to recurring organizational problems or opportunities Non Programed Decision- involve developing and choosing among new alternatives have not yet been developed or are not appropriate.
STEP 2 DEVELOP ALTERNATIVE RESPONSES 3 Basic kinds of Alternatives: Do nothing Follow routine response Develop a nonprogrammed response
STEP 3 CHOOSE APPROPRIATE ALTERNATIVE How this choice is made depends on two key factors: Goal consensus- is the level of agreement among members about which goals the organization should pursue Available knowledge
AVAILABLE KNOWLEDGE Classical Rational Decision-Making method: High consensus, High Knowledge Political Decision Making method: Low Consensus, High Knowledge Incremental Trial and error Decision making method: High consensus, Low knowledge Random Decision making method: Low Consensus, Low Knowledge
STEP 4 IMPLEMENT THE CHOICE Overcome resistance to implementation by involving members in earlier steps of decision making
QUIZ TIME 10 points Explain how you decided which school to attend or which major to choose. Did your decision making process follow the four steps? Which step is more important? Why?