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

2. 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.

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

4. 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.

5. 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.

6. 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.

7. 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

8. 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?

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

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

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

12. 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

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

14. 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

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

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