1. Presentation Layout Definition
The nature of managerial decision making
Types of problems decision makers face
Differences in decision making situations
Models of decision making
Steps in an effective decision making process
Overcoming barriers to effective decision making
Managing diversity: group decision making
Summary and Conclusions

2. Definition
The act of making up your mind about something, or a position or opinion or judgment reached after consideration.
The process of selecting from several choices, products or ideas, and taking action.

3. Four Functions of Management
An effective decision making includes following four steps

4. Four Functions of Management
1-8
Four Functions of Management
Planning
Choose Goals
Controlling
Organizing
Monitor & measure
Working together
Leading
Coordinate

5. Types of problems decision makers face
Managerial decision making typically centers on three types of problems:
Crisis
A crisis problem is a serious difficulty requiring immediate action.
Non-Crisis
A non-crisis problem is an issue that requires resolution but does not simultaneously have the importance and immediacy characteristics of a crisis.
Opportunity Problems.
An opportunity problem is a situation that offers strong potential for significant organizational gain if appropriate actions are taken.

6. Differences in decision making situations
There are two situation
Programmed Decision Making
Programmed Decisions are those made in routine, repetitive, well-structured situations through the use of predetermined decision rules.
Non-Programmed Decision Making
Non-programmed Decisions are those for which predetermined decision rules are impractical because the situations are novel and/or relatively ill structured.

7. Three Levels of Management
1-14
Three Levels of Management
Top Managers
Middle Managers
First-line Managers
Non-management

8. Three Levels of Management
Comparison of Decision making situation and management levels

9. Three Stages of the Planning Process
Determining the Organization’s
mission and goals
(Define the business)
Strategy formulation
(Analyze current situation &
develop strategies)
Strategy Implementation
(Allocate resources & responsibilities
to achieve strategies)

10. Models of decision making
Rational Model
Most popular type of model
Based around a cognitive judgment
Pros and cons of various options
Non-Rational Models
Satisficing Model
Incremental Model
Garbage-Can Model

11. Models of decision making cont….
Satisficing Model
Managers seek alternatives
One that looks satisfactory
Not seeking the optimal decision.
Incremental Model
Managers make the smallest response possible
This reduce the problem to at least a tolerable level.

12. Models of decision making cont….
Garbage-Can Model
Managers behave in virtually a random pattern

13. Steps in an effective decision making process
Four steps for effective decision making

14. Overcoming barriers to effective decision making
Means of overcoming D.M. barriers
Accepting the problem challenge
Searching for sufficient Alternatives
Recognizing common Decision Making Biases
Avoiding the Decision Escalation Phenomenon

15. Managing diversity Group Decision Making
Decision Making by more than one person
Usually followed in organizations
It has some advantages and some disadvantages

16. Outlines Definition The nature of managerial decision making
Types of problems decision makers face
Differences in decision making situations
Models of decision making
Steps in an effective decision making process
Overcoming barriers to effective decision making
Managing diversity: group decision making

17. Summary and Conclusions
Decision making is the process through which managers identify organizational problems and attempt to resolve them.
There are three types of Problems Managers face
Situation differ in Decision Making Process
Managers follow different types of models during decision making
Managing diversity