1. DECISION MAKING PROCESS Meltem Şanlı Dokuz Eylül University Industrial Engineering Department

2. WHAT IS DECISION MAKING PROCESS ?

3. can be regarded as the mental processes resulting in the selection of a course of action among several alternatives.  Decision making, can be regarded as the mental processes resulting in the selection of a course of action among several alternatives.

4. STEPS OF DECISION MAKING

5.  Step 1: IDENTFY THE PROBLEM The decision maker must answer these questions: ‘What is exactly the problem to be solved? Why it should be solved?’ The decision maker should understand the problem to achieve the correct decision.

6.  Step 2: RESEARCHING INFORMATION If the decision maker collects accurate and reliable information then this will be of great help in solving the problem  Step 2: RESEARCHING INFORMATION If the decision maker collects accurate and reliable information then this will be of great help in solving the problem.

7.  Step 3: GENERATE ALTERNATIVES Problem-solving and decision- making are closely linked, and each requires creativity in identifying and developing options, for which the brainstorming technique is especially useful.

8.  Step 4: EVULATION OF ALTERNATIVES The decision maker uses standards and judgement criteria to determine the cons and pros of each alternative. Matrix and SWOT Analysis Methods can be used on decision making process The decision maker uses standards and judgement criteria to determine the cons and pros of each alternative. Matrix and SWOT Analysis Methods can be used on decision making process.

9.  Step 5: DECIDE ON IMPLEMENTATION This is much easier after going through the above preparation steps. If the decision makers are satisfied with alternatives, they will implement the chosen alternative for the solution of the problem.

10.  Step 6: FOLLOW UP ON THE DECISION Once the decision has been taken, the decision maker must follow up on the decision to see if it is working successfully. If the implementation has not produced the correct solution, the decision maker must go over the other steps again  Step 6: FOLLOW UP ON THE DECISION Once the decision has been taken, the decision maker must follow up on the decision to see if it is working successfully. If the implementation has not produced the correct solution, the decision maker must go over the other steps again.

11. STEPS OF DECISION MAKING

12. IMPORTANCE OF DECISION MAKING

13. Decision-making makes it possible to adopt the best course of action in carrying out a given task. When there are different ways of performing a task, it becomes necessary to find out the best way and that is what decision-making is all about. The course of action finally selected should produce the best results. Decision-making makes it possible to adopt the best course of action in carrying out a given task. When there are different ways of performing a task, it becomes necessary to find out the best way and that is what decision-making is all about. The course of action finally selected should produce the best results.

14. Decision-making helps to find a solution to any problem in a work place and to identify the best course of action in each given situation and there by promotes efficiency. Decision-making helps to find a solution to any problem in a work place and to identify the best course of action in each given situation and there by promotes efficiency.

15. TYPES OF BUSINESS DECISIONS

16. Programmed Decisions: These are standard decisions which always follow the same routine. As such, they can be written down into a series of fixed steps which anyone can follow.  Programmed Decisions: These are standard decisions which always follow the same routine. As such, they can be written down into a series of fixed steps which anyone can follow.  Non-Programmed Decisions: These are non-standard and non-routine. Each decision is not quite the same as any previous decision.

17.  Strategic Decisions: These affect the long-term direction of the business, whether to take over Company A or Company B.  Tactical Decisions: These are medium-term decisions about how to implement strategy, what kind of marketing to have, or how many extra staff to recruit.

18.  Operational Decisions: These are short-term decisions (also called administrative decisions) about how to implement the tactics, which firm uses to make deliveries

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