1. Decision making process Problems A difference b/w existing and a desired state of affairs.

2. Steps of a decision making process Identifying the problem. Identifying the decision criteria. Allocating weights to the criteria. Developing the alternatives. Analyzing alternatives. Selecting the alternative. Implementing the alternative. Evaluating decision effectiveness.

3. Step-1 Identifying the problem. Problem—a discrepancy between the current state and desired state Difference between the current performance Difference from the goals decided a discrepancy between the current state and desired state. E.g. purchase a car Problem—a discrepancy between the current state and desired state Difference between the current performance Difference from the goals decided a discrepancy between the current state and desired state. E.g. purchase a car

4. STEP-2 IDENTIFICATION OF DECISION CRITERIA: - Factors that are relevant in making a decision Model Colour Engine Power Consumption Price Factors that are relevant in making a decision Model Colour Engine Power Consumption Price

5. STEP-3 ALLOCATION OF WEIGHTS TO THE CRITERIA (Allocating Weights): - CriteriaWeights Price10 Consumption7 Engine Power6 Model4 Colour2

6. STEP-4 DEVELOPMENT OF ALTERNATIVES: - Toyota Suzuki Honda BMW Hammer Toyota Suzuki Honda BMW Hammer

7. STEP-5 ANALYSIS OF ALTERNATIVES: - CriteriaToyota Total Suzuki Total Honda Total BMW Total Hammer Total Price (10) 6(10)608(10)806(10)601(10)100(10)0 Consumpt ion (7) 4(7)286(7)423(7)213(7)210(7)0 Engine Power (6) 5(6)303(6)185(6)306(6)366(6)36 Model (4) 2(4)8 83(4)124(4)164(4)16 Colour (2) 2(2)41(2)215(2)302(2)4 4 TOTAL1301508756

8. STEP-6 SELECTION OF AN ALTERNATIVE: - With the highest choice Suzuki **** Toyota Honda BMW Hammer With the highest choice Suzuki **** Toyota Honda BMW Hammer

9. STEP-7 IMPLEMENTATION OF AN ALTERNATIVE: - You purchased Suzuki

10. STEP-8 EVALUATION OF DECISION EFFECTIVENESS: - Did it meet the goals you wanted to meet?