1. LESSON 3 DECISION MAKING PROCESS
Prepared by: Prof Ayza Valdez

2. DECISION
Is a choice that is made available from a number of available alternatives

3. THE FOUR STEP DECISION MAKING PROCESS

4. 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.

5. STEP 2 DEVELOP ALTERNATIVE RESPONSES
3 Basic kinds of Alternatives:
Do nothing
Follow routine response
Develop a nonprogrammed response

6. 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

7. 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

8. STEP 4 IMPLEMENT THE CHOICE
Overcome resistance to implementation by involving members in earlier steps of decision making

9. 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?